Tuesday, March 29, 2011

Highpower International (HPJ) Posts Strong Q4, FY2010 Results driven by Global Demand and Position in Consumer Electronics Market

Highpower International Inc., a developer, manufacturer and marketer of nickel-metal hydride (Ni-MH) and lithium-ion (Li-ion) batteries and related products, yesterday announced financial results for the fourth quarter and year ended December 31, 2010.

The company attributes its revenue growth and profit to increased global demand for its products as the company secured a foothold in the next-generation consumer electronics market.

Highpower International reported net sales for the fourth quarter ended December 31, 2010, at $27.9 million, a year-over-year increase of 24 percent compared with $22.5 million for the fourth quarter ended December 31, 2009.

Fourth quarter 2010 gross profit increased 44 percent to $6.3 million, as compared with $4.3 million for the fourth quarter 2009. Gross profit margin was 22.4 percent for the fourth quarter 2010, as compared with 19.3 percent for the fourth quarter 2009.
Net income for the fourth quarter of 2010 was $1.4 million, or $0.10 per diluted share, based on 13.9 million weighted average shares outstanding. This compares with fourth quarter 2009 net income of $638,000, or $0.05 per diluted share, based on 13.6 million weighted average shares outstanding.

For full year 2010, the company reported net sales of $104.9 million, a year-over-year increase of 49 percent compared with $70.3 million for the year ended December 31, 2009.

Gross profit for 2010 increased 45 percent to $21.8 million, as compared with $15.0 million for 2009. Gross profit margin was 20.8 percent for 2010, as compared with 21.4 percent for 2009.

Full year 2010 net income increased 36% to $6.0 million, or $0.44 per diluted share, for the year ended December 31, 2010, based on 13.7 million weighted average shares outstanding. This compares with 2009 net income of $4.4 million, or $0.33 per diluted share, for the year ended December 31, 2009, based on 13.6 million weighted average shares outstanding.

At December 31, 2010, Highpower International reported cash, cash equivalents and restricted cash totaling $14.5 million, total assets of $69.9 million, working capital of $10.1 million and stockholders’ equity of $27.8 million. Bank credit facilities totaled $61.2 million at December 31, 2010, of which $22.5 million was utilized and $38.7 million was available as unused credit.

Based on the company’s current expectations for global demand for the rechargeable battery market in 2011, Highpower International said it expects net sales to be between $125 million and $135 million and net income to be between $6.0 million and $7.0 million for the year ended December 31, 2011.

“As we look forward, we believe we are well positioned within our industry to capitalize on growth opportunities with an estimated 11 percent share of the global Ni-MH battery market, a growing presence in the Lithium battery market and excellent customer relationships. We plan on building on this momentum in 2011 with increased investments in our global sales and marketing platform and advancing our position as a leading developer, manufacturer and marketer of clean energy products and solutions,” George Pan, chairman and CEO of Highpower International stated in the press release.

For more information visit www.highpowertech.com

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