C&D (CHP) 8-K C&D Technologies Reports Fiscal 2012 Second Quarter Results

Exhibit 99.1

C&D Technologies Reports Fiscal 2012 Second Quarter Results

• 13% year-over-year revenue growth

• Net loss significantly reduced from prior year

• $4.1 million of Adjusted EBITDA generated

BLUE BELL, PA., September 7, 2011 /PRNewswire-FirstCall/ — C&D Technologies, Inc. (OTC:CHHP), a leading North American producer and marketer of electrical power storage and conversion systems used in telecommunications, uninterrupted power supply (or “UPS”) systems, utility and other high reliability applications, today announced financial results for the second quarter of fiscal 2012, ended July 31, 2011.

Fiscal 2012 second quarter revenues were $94.6 million up 13 percent compared to $83.8 million in the second quarter of fiscal 2011. Revenues in the quarter reflected strong growth in Asia and Europe, as well as higher average selling prices resulting from an increase in the average quarterly cost of lead compared to the average cost of lead in the year ago quarter. These increases were partially offset by continued pressures on volumes as a result of the general economic environment, principally in our Americas UPS Flooded markets. Revenues in the second quarter were up from $88.3 million in the first quarter of fiscal 2012 as a result of strong growth in Europe and Asia and improved performance of the Telecom sector in the Americas compared to the first quarter.

Gross profit in the second quarter of fiscal 2012 was up five percent from the comparable quarter a year ago to $11.6 million. Gross margins in the second quarter of fiscal 2012 were 12.2%, down from 13.2% in the comparable year ago quarter and down from 14.5% in the first quarter of fiscal 2012. Gross margins contracted versus the comparable year ago quarter primarily due to increased lead prices during the period which were only partially recovered through increased pricing as well as unfavorable product mix shifts and negative absorption as inventory levels were significantly reduced. During the second quarter inventory levels were reduced by approximately $8 million. Margins were down on a sequential basis as a result of unfavorable product mix shifts and negative absorption as inventory levels were significantly reduced.

Selling, general and administrative expenses of $8.8 million in the second quarter of fiscal 2012 were $0.4 million lower than the comparable year ago quarter as a result of lower warranty costs offset by approximately $0.2 million in severance expenses associated with headcount reductions. On a sequential basis, selling, general and administrative costs were down $1.6 million driven by lower warranty and severance costs and benefits from ongoing cost reduction actions.

For the second quarter of fiscal 2012, the Company reported income from operations of $1.2 million, an improvement compared to operating losses of ($59.7) million (operating income of $0.2 million excluding the goodwill impairment charge) in the second quarter of fiscal 2011 and an increase from $0.8 million in the first quarter of fiscal 2012. For the quarter, the Company reported a net loss of ($1.1) million or ($0.07) per diluted share, compared to

a net loss of ($50.7) million, or ($48.91) per diluted share in the second quarter of fiscal 2011 and net loss of ($0.6) million, or ($0.04) per diluted share in the first quarter of fiscal 2012. The reduction in net loss from the comparable year ago quarter was driven by improved operating performance, the benefit from lower interest expense following the Company’s fourth quarter fiscal 2011 debt for equity exchange and a goodwill impairment charge of $60.0 million ($46 million net of tax) in the second quarter of fiscal 2011. The increase in the sequential net loss is primarily a result of approximately $0.3 million of costs associated with the Company’s consideration of a going private transaction as well as approximately $0.3 million of non-cash foreign currency remeasurement losses associated with intercompany balances, only partially offset by improved operating performance. Adjusted EBITDA for the second quarter of fiscal 2012 was $4.1 million as compared to $4.1 million in the comparable quarter a year ago and $3.3 million sequentially.

Commenting on the quarter, Dr. Jeffrey A. Graves, President and CEO said, “Our second quarter results were generally in line with our expectations. As we had indicated when releasing our first quarter results, we expected to see revenues in our second quarter rebound as our core markets in Asia continue to expand and as we headed into the quarter with a stronger backlog for our European business. During the quarter we also made great strides on driving down inventory levels, realizing an over $8 million reduction as we continue to focus on improving our working capital performance. These efforts however, resulted in a negative absorption impact on our bottom line as we adjusted our workforce levels in North America to compensate for continued softness in our Americas Flooded UPS markets.”

Use of Non-GAAP Financial Measures

To supplement its consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company has provided additional measures of its operating results, net income and earnings per share, which principally exclude certain costs and expenses related to both the Company’s operational and financial restructuring plans. The Company believes that these non-GAAP financial measures are appropriate to enhance understanding of its historical performance as well as prospects for its future performance.

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Pursuant to Regulation G, a reconciliation of these non-GAAP financial measures with the comparable financial measures calculated in accordance with GAAP for the three-month periods ended July 31, 2011, July 31, 2010 and April 30, 2011, as well as the six-month periods ended July 31, 2011 and July 31, 2010 follows:

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION

(Dollars in thousands)

(UNAUDITED)

	Three months ended July 31,						Three Months Ended April 30,
	2011			2010			2011
Net loss	$	(1,129	)	$	(50,680	)	$	(625	)
Interest expense, net		1,275			4,199			1,231
Income tax provision (benefit)		169			(13,794	)		66
Depreciation and amortization		2,719			2,562			2,556
Goodwill impairment		—			59,978			—
EBITDA		3,034			2,265			3,228
Non-cash stock expense		364			310			231
Foreign exchange		342			165			(340	)
Environmental charges closed facilities		—			218			110
Temporary labor disruption in Asian facility		—			1,100			—
Going private expenses		341			—			—
Restructuring charges		28			—			97
Adjusted EBITDA	$	4,109		$	4,058		$	3,326
	Six months ended July 31,
	2011			2010
Net loss	$	(1,754	)	$	(56,284	)
Interest expense, net		2,506			7,547
Income tax provision (benefit)		235			(13,400	)
Depreciation and amortization		5,275			5,176
Goodwill impairment		—			59,978
EBITDA		6,262			3,017
Non-cash stock expense		595			570
Foreign exchange		2			114
Environmental charges closed facilities		110			882
Temporary labor disruption in Asian facility		—			1,100
Going private expenses		341			—
Restructuring charges		125			—
Adjusted EBITDA	$	7,435		$	5,683

About C&D Technologies:

C&D Technologies, Inc. provides solutions and services for the switchgear and control (utility), telecommunications, and uninterruptible power supply (UPS), as well as emerging markets such as solar power. C&D Technologies engineers, manufactures, sells and services fully integrated reserve power systems for regulating and monitoring power flow and providing backup power in the event of primary power loss until the primary source can be restored. C&D Technologies’ unique ability to offer complete systems, designed and produced to high technical standards, sets it apart from its competition. C&D Technologies is headquartered in Blue Bell, PA. For more information about C&D Technologies, visit http://www.cdtechno.com/.

Forward-looking Statements:

This press release contains forward-looking statements, which are based on management’s current expectations and are subject to uncertainties and changes in circumstances. Words and expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. The Company’s actual results could differ materially from those anticipated in forward-looking statements as a result of a variety of factors, including those discussed in “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2011. We caution you not to place undue reliance on these forward-looking statements.

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

(UNAUDITED)

	Three months ended July 31,						Six months ended July 31,
	2011			2010			2011			2010
NET SALES	$	94,598		$	83,835		$	182,909		$	168,538
COST OF SALES		83,018			72,802			158,525			147,527
GROSS PROFIT		11,580			11,033			24,384			21,011
OPERATING EXPENSES:
Selling, general and administrative expenses		8,813			9,209			19,248			18,431
Research and development expenses		1,570			1,589			3,165			3,377
Goodwill impairment		—			59,978			—			59,978
OPERATING INCOME (LOSS)		1,197			(59,743	)		1,971			(60,775	)
Interest expense, net		1,275			4,199			2,506			7,547
Other expense, net		812			674			692			1,410
LOSS BEFORE INCOME TAXES		(890	)		(64,616	)		(1,227	)		(69,732	)
Income tax provision (benefit)		169			(13,794	)		235			(13,400	)
NET LOSS		(1,059	)		(50,822	)		(1,462	)		(56,332	)
Net income (loss) attributable to noncontrolling interests		70			(142	)		292			(48	)
NET LOSS ATTRIBUTABLE TO C&D TECHNOLOGIES, INC.	$	(1,129	)	$	(50,680	)	$	(1,754	)	$	(56,284	)
Loss per share:
Basic and Diluted:	$	(0.07	)	$	(48.91	)	$	(0.12	)	$	(54.38	)

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except par value)

(UNAUDITED)

	July 31, 2011		January 31, 2011
ASSETS
Current assets:
Cash and cash equivalents	$	7,480	$	3,708
Restricted cash		276		—
Accounts receivable, less allowance for doubtful accounts of $794 and $981		68,905		61,188
Inventories		71,254		80,772
Deferred taxes		256		251
Other current assets		4,177		4,508
Total current assets		152,348		150,427
Property, plant and equipment, net		85,670		86,891
Deferred income taxes		250		249
Intangible and other assets, net		13,024		13,726
TOTAL ASSETS	$	251,292	$	251,293
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	7,687	$	2,596
Accounts payable		34,350		39,477
Accrued liabilities		12,440		13,847
Deferred income taxes		103		97
Deferred revenue		1,362		3,588
Other current liabilities		5,951		5,955
Total current liabilities		61,893		65,560
Deferred income taxes		98		98
Long-term debt		33,798		32,934
Long-term debt - related party		20,000		20,000
Other liabilities		40,449		39,169
Total liabilities		156,238		157,761

Equity:
Common stock, $.01 par value, 25,000,000 shares authorized; 15,306,936 and 15,306,915 shares issued and 15,196,563 and 15,196,542 outstanding at July 31, 2011 and January 31, 2011, respectively		153			153
Additional paid-in capital		202,946			202,350
Treasury stock, at cost, 110,373 shares at July 31, 2011 and January 31, 2011		(39,200	)		(39,200	)
Accumulated other comprehensive loss		(41,408	)		(43,489	)
Accumulated deficit		(40,234	)		(38,480	)
Total stockholders’ equity attributable to C&D Technologies, Inc.		82,257			81,334
Noncontrolling interest		12,797			12,198
Total equity		95,054			93,532
TOTAL LIABILITIES AND EQUITY	$	251,292		$	251,293

C&D TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(UNAUDITED)

	Six months ended July 31,
	2011			2010
Cash flows from operating activities:
Net loss	$	(1,462	)	$	(56,332	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Share-based compensation		596			533
Depreciation and amortization		5,275			5,176
Amortization of debt acquisition and discount costs		273			2,685
Impairment of goodwill		—			59,978
Deferred income taxes		3			(13,479	)
Changes in assets and liabilities:
Accounts receivable		(7,019	)		231
Inventories		10,054			4,925
Other current assets		393			(21	)
Accounts payable		(5,300	)		(13,405	)
Deferred revenue		(2,258	)		1,775
Accrued liabilities		819			(1,144	)
Book overdraft		(230	)		(401	)
Income taxes payable		(101	)		30
Other current liabilities		(2,310	)		2,518
Other liabilities		2,886			604
Other long-term assets		(20	)		19
Other, net		(725	)		(717	)
Net cash provided by (used in) continuing operating activities		874			(7,025	)
Net cash used in discontinued operating activities		—			(7	)
Net cash provided by (used in) operating activities		874			(7,032	)
Cash flows from investing activities:
Acquisition of property, plant and equipment		(2,521	)		(5,083	)
(Increase) decrease in restricted cash		(276	)		8
Net cash used in investing activities		(2,797	)		(5,075	)
Cash flows from financing activities:
Borrowings on line of credit facility		34,295			51,232
Repayments on line of credit facility		(32,009	)		(55,831	)
Repayment of debt		(623	)		(97	)
Proceeds from new borrowings		4,041			20,022
Proceeds from the issuance of treasury stock		—			14
Financing cost of long term debt		(124	)		(2,245	)
Purchase of treasury stock		—			(71	)
Net cash provided by financing activities		5,580			13,024
Effect of exchange rate changes on cash and cash equivalents		115			33
Increase in cash and cash equivalents		3,772			950
Cash and cash equivalents, beginning of period		3,708			2,700
Cash and cash equivalents, end of period	$	7,480		$	3,650