USA. Millennium Cell reports $2.1 million net loss Q3 06 as against $3.4 million Q3 05 Print E-mail
Tuesday, 31 October 2006
Company news:

Millennium Cell Inc. (NASDAQ: MCEL), a leading developer of hydrogen battery technology, has reported a net loss for the quarter ended September 30, 2006 of $2.1 million, or $0.04 per share, as compared to a net loss of $3.4 million, or $0.08 per share in the same period of 2005. Cash used in operating activities for the nine months ended September 30, 2006 was $5.5 million as compared to $6.6 million in the prior year, a decrease of $1.1 million. The decrease was mainly due to increased cost reimbursements under the Company’s government funded programs and lower professional fees in 2006 as compared to 2005.

“Millennium Cell is focused on the commercialization of its hydrogen battery technology with its fuel cell licensees and partners in four key portable power markets; military, industrial, medical and consumer electronics. We have achieved considerable traction in the military market to date and we are now working on opportunities for industrial market introduction of our technology as early as next year. I will now share our most recent progress in both of these key early adopting markets,” commented H. David Ramm, Chief Executive Officer.

“In early July, the company was awarded a $730,000 Phase ll Small Business Innovation Research Program contract from the U.S. Army to develop a fully modular 500 watt power system that can use available field water. We are working with Relion, a leading PEM fuel cell manufacturer, to develop this system which will be able to support a number of military uses as well as potential commercial applications.

“We entered into a strategic licensing agreement with Jadoo Power in February of this year and have made some important advances in a very short time frame. Millennium Cell is working with Jadoo Power in a program funded by the U.S. Military’s Special Operations Command (SOCOM) to move soldier power from legacy battery solutions to advanced fuel cell technologies. We are developing a fuel canister to be delivered in 2007 that is designed to work with Jadoo’s IFS24. The fuel canister will be disposable and will also be lighter and cheaper than the canister originally provided by Jadoo to SOCOM with the IFS24.

“In addition, we have already jointly developed and demonstrated a prototype chemical hydride based fuel canister that utilizes Jadoo’s N-Stor interface which is completely compatible with all Jadoo products including the XRT fuel cell system. Currently, the XRT which has over 2200 W-hr of energy uses six metal hydride canisters for fuel storage which weigh approximately 30 pounds. Our solution delivers the same runtime while cutting the fuel canister weight in half,” continued Mr. Ramm.

“During the third quarter, we also demonstrated a fuel cell powered wireless camera system with infrared sensing and audio capability that was jointly developed with our partner, Gecko Energy Technologies. This prototype, which was shown at two homeland defense and sensor conferences was the first integration of our Hydrogen on Demand ® system with Gecko’s PowerSkin™ fuel cell into a hydrogen battery. Our integrated system demonstrated the potential for fuel cells in low power, long run-time devices essential in homeland security and defense applications.

“In addition to achieving important milestones in our partnerships, we also made significant progress in securing important contracts and funding opportunities for the company during the quarter,” continued Mr. Ramm. “First, we were awarded a Phase I Small Business Innovation Research Program contract from the U.S. Navy. This contract is to develop a high energy density hydrogen storage system that will have greater energy storage capability than previously demonstrated with a solid fuel composition that has infinite shelf life.

“Next, in early October we announced that the company’s programs will be allocated $2.5 million of funding in the 2007 Defense Appropriations Bill for the U.S. Air Force soldier power program. This is our second consecutive year of congressional funding for the soldier power program and demonstrates continued interest on behalf of the Air Force in the deployment of new soldier power systems like the Protonex P2 to lighten the load on the soldiers in the field.

“Finally, in mid-October, we received a delivery order from the Air Force Research Laboratory which provides for up to $4 million over a five year period to develop and purchase sodium borohydride based fuel cartridges. The initial $0.5 million phase of work is to support development of a new higher energy density fuel cartridge which addresses future power source specifications required by the military. Later phases of work under this delivery order will be designed to integrate and evaluate advanced fuel cell cartridges with the Protonex P2 soldier power system,” stated Mr. Ramm.

“As for commercial developments, last week we agreed to manufacture fuel cartridges for deployment with first responders in South Carolina as part of the state’s Fuel Cell Grand Challenge effort. The canisters will provide the hydrogen fuel to Jadoo’s line of N-Gen Fuel Cell Power Units and XRT Extended Runtime Accessories. We expect to supply up to 250 Hydrogen on Demand® fuel canisters for this program in mid-2007. This first production run provides an opportunity to implement the manufacturing knowledge gained under our 15 month program with the National Center for Manufacturing Sciences, which includes The Dow Chemical Company, EWI and NextEnergy as collaborators. This is valuable experience as we prepare for Jadoo’s commercial launch of this product later in 2007,” concluded Mr. Ramm.
Last Updated ( Tuesday, 31 October 2006 )
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