Enova Systems, Inc. announced its 2011 financial results on Friday, March 30, 2012. The company reported revenues of $6.6M and gross margins of 3.9%, despite a significant downturn in the overall electric and hybrid market.
Annual revenue was $6.6M in 2011, a decrease of 23% from $8.6M in 2010 and Q4 2011 revenue was $638,000, a decrease of $3.1M from $3.7M for the same period in 2010. Customer orders decreased dramatically in the second half of the year due to tightened government and school district budgets, which resulted in a decrease in orders for our customers’ vehicles.
Gross profit decreased to $0.3M in 2011 from $1.4M in 2010, and, in Q4, we swung to a gross loss of $618,000 from gross profit of $751,000 in the same period in 2010. Margins decreased, in particular in the second half of 2011, due to the lower sales base and our decision to record an increase in the inventory valuation reserve at year end.
Overall, annual gross margin was 3.9% in 2011, down from 16.5% in 2010 and the gross margin in Q4 2011 decreased to a negative 97% compared to a positive margin of 20% for the same period in 2010.
Enova President and CEO Mike Staran stated, "With many of our suppliers and competitors facing insolvency and other crisis-type issues, we are encouraged with the announced initiatives we have made in extremely difficult market conditions. By remaining diligent in maturing what we consider game-changers such as Green For Free™, we believe that we have strengthened our position with our core customers, as well as begun to establish better control over the distribution channels in our market segment."
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