| February 26, 2009 |
| ZENN Motor Company Reports First Quarter 2009 Results |
TORONTO, ONTARIO--(Marketwire - Feb. 26, 2009) - ZENN Motor Company Inc., ("ZMC" or the "Company") (TSX VENTURE:ZNN) a leading developer of zero emission transportation solutions, today announced its financial results for the three months ended December 31, 2008. All amounts are expressed in Canadian dollars unless otherwise indicated.
For the three months ended December 31, 2008, gross revenue was $545,392, (2007 - $900,424) a decline of 39% from the corresponding 2007 period. Unit sales in the current quarter were 24 compared to 69 in the corresponding prior year period and were negatively impacted by a supplier problem and a significant deterioration in the sales of automobiles of every type.
Net loss for the three month period was $1,786,420 or $(0.05) per share compared with a net loss of $1,677,662 or $(0.06) per share for the corresponding period in the prior year.
At December 31, 2008 the Company had working capital of $13,435,453 including cash, cash equivalents and short-term investments totaling $11,765,187 compared to $15,068,689 and $14,686,100, respectively, at September 30, 2008.
"The Company's first quarter results were affected by two significant events" said Ian Clifford, CEO of the Company. "A supplier of a major powertrain component experienced a labour disruption at its production facility that prevented us from completing and shipping ZENNs from mid-September until mid-December. Our engineering and production teams quickly integrated a product from an alternative supplier but the disruption did cost us sales and momentum in the market."
"The second major event" said Clifford, "is the economic turmoil that has rolled over the U.S. and most countries around the world. Auto sales, particularly in the U.S., have experienced a major decline and it will take time for consumer confidence to be restored. While we operate in a somewhat unique space, we are not immune to the pressures currently suppressing the auto market. The Company continues to have a strong balance sheet, and with a keen focus on value spending, we remain committed to our on-going development projects that will drive the future of the business."
"Despite the economic turmoil" observed Clifford, "it is encouraging to see that governments have maintained their commitment to alternative energy and green strategies. The Obama Administration in the United States has made clean energy a major priority and allocated several billion dollars towards alternative energy initiatives as part of its stimulus package. The Government of Ontario has also made clean energy a priority and announced a number of "green" incentive programs. Our mission plays well into these strategies and the Company is pursuing funding opportunities on both sides of the border that would enable us to further accelerate our development initiatives. While there can be no assurances of success" says Clifford, "the Company's plans and opportunities have generated considerable interest."
Additional Information
Readers are encouraged to read the Company's unaudited consolidated financial statements for the three months ended December 31, 2008 and the corresponding Management's Discussion and Analysis both of which have been filed on SEDAR at www.sedar.com and posted on the Company's website at www.ZENNcars.com.
ABOUT ZENN Motor Company Inc.
ZENN Motor Company, Toronto, Canada, is dedicated to being the global leader in zero emission transportation solutions for markets around the world. Driven by quality, ingenuity, and a philosophy of social responsibility, the ZMC team is redefining what is possible in both urban and business fleet transportation.
The ZENN(TM) (Zero Emission No Noise) provides an excellent alternative transportation solution for environmentally conscious drivers who want to dramatically reduce their operating costs and free themselves from dependence on oil. The current ZENN low speed vehicle is perfect for urban commuters and commercial fleets such as resorts, gated communities, airports, college and business campuses, municipalities, and parks and is sold through a network of retailers across the United States and directly by the Company in Quebec.
The planned commercialization and implementation of the ultra capacitor being developed by ZENN Motor Company's strategic partner EEStor, Inc., is expected to enable future ZMC vehicles and ZENNergy(TM) drivetrain powered vehicles to travel at speeds and distances similar to internal combustion powered vehicles but at a fraction of the cost and with zero emissions! |
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