Enova Systems Inc. (Torrance, CA), a developer and manufacturer of mobile and stationary electric, hybrid and fuel cell digital power management systems, submitted its results for the year ended December 31, 2004, to the US Securities and Exchange Commission reporting revenues of $2.6 million for the year and losses from continuing operations of $3.38 million.
For the year ended December 31, 2004, the $3,382,000 net loss is $196,000 more than the loss incurred in 2003 of $3,186,000, an increase of 6%. The increase is due primarily to write-offs of obsolete and slow-moving inventory during the year, increased internal development for new products, and costs associated with our annual meeting and other regulatory compliance.
Excluding approximately $350,000 in write-downs of obsolete inventory and other non-recurring charges — as well as non-cash expenses of approximately $913,000, including depreciation, accrued interest and equity investment losses — Enova's pro-forma cash loss from operations was $2,119,000.
Net sales of $2,554,000 for the 12 months ended December 31, 2004, decreased $1,756,000 or 41% from $4,310,000 during the same period in 2003. During 2004, the company experienced a slowdown in sales due to a number of internal and external developments, including personnel changes, and customer delays in ordering caused by continued evaluation of company systems or awaiting orders for products.