Millennium Cell Inc. (NASDAQ:MCEL), a leading developer of hydrogen battery technology reported a net loss for the quarter ended June 30, 2005 of $5.8 million, or $0.14 per share, as compared to $2.9 million, or $0.08 per share in the same period of 2004.
The increase in net loss is attributable to non-cash charges of $2.4 million associated with issuance of the Series A Preferred Stock to The Dow Chemical Company (“Dow”) in April 2005. Excluding the impact of these charges, the Company’s results were within expectations for the quarter. Cash used in operating and investing activities during the second quarter was $2.3 million as compared to $1.3 million for the same period of 2004, an increase of $1.0 million. This increase was attributable mainly to payments of professional fees incurred in connection with the Company’s joint development arrangement with Dow, the closing of the private placement and Nasdaq compliance efforts in the first half of 2005.
“The second quarter was important for the Company as we secured new partners and new funding while advancing the development of our technology toward commercialization,” commented H. David Ramm, Millennium Cell Chief Executive Officer, “We began working with the Dow team to further develop our technology, received contract awards from three government customers including an effort to develop low cost manufacturing processes for our fuel cartridges, and strengthened our financial condition with a private placement.
“On the business development front, we are making progress with OEM’s and fuel cell developers in military, medical, industrial and consumer markets to identify and target applications where our hydrogen battery technology can provide immediate cost and performance advantages for customers. In addition, together with Protonex Technology Corporation, we remained focused on the development of a robust soldier power system for delivery to the U.S. Air Force in the fourth quarter of this year. Field testing of the system by the Air Force may begin as early as the first quarter of 2006.”
The Company will host a conference call on July 28th, 2005 at 10:00 a.m., EDT to discuss its first quarter results. Interested parties may listen to the live teleconference by dialing 1-866-202-4367 and entering passcode 85257026. A telephonic replay of the conference call will also be available through August 4, 2005, by calling 1-888-286-8010 and entering passcode 59881884.
To listen to a live broadcast of the call over the Internet or to review the archived call, please visit: www.millenniumcell.com under the “Investor Relations” section.
Millennium Cell develops hydrogen battery technology through a patented chemical process that safely stores and delivers hydrogen energy to power portable devices. The borohydride-based technology can be scaled to fit any application requiring high energy density for a long run time in a compact space.
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