NEWS
For release Wednesday, July 23, 2003
Contact: Christine Messina-Boyer
Office: 732-544-5712
Cell: 703-217-2707
MILLENNIUM CELL ANNOUNCES Q2 2003 RESULTS OF OPERATIONS
Performance on Target with Expectations
Eatontown, NJ-July 23, 2003 -Millennium Cell Inc. (NASDAQ: MCEL), a leading
technology company that has created a proprietary technology to safely store,
generate and deliver pure hydrogen, today reported an adjusted net loss of $3.7
million or 12 cents per share (adjusted for non-cash charges) for the second
quarter ended June 30, 2003. This compares to an adjusted net loss of $3.1
million for the second quarter of 2002. These expenses do not reflect actual
cash outflow. Cash and cash equivalents used during the second quarter of 2003
was $2.8 million, as compared to $3.3 million during the same period of 2002,
reflecting the Company's sustaining cost reduction efforts initiated in May
2002. Net loss as reported for the quarter was $4.6 million, or 15 cents per
share.
"I am happy to report that for the fourth quarter in a row, we have maintained
the fiscal discipline that we established when we restructured last May," said
Dr. Stephen S. Tang, Millennium Cell President and CEO. "Once again, we are
performing on target with expectations for cost-effective execution of our
business plan."
A conference call to discuss second quarter results is scheduled for Wednesday,
July 23, at 8:30 a.m., EDT. Interested parties may listen to the live
teleconference by dialing 1-800-613-3456 (accessible from the U.S. and Canada)
and entering pass code 01181. A re-broadcast will be available beginning
Wednesday, July 23, at 1:00 pm EDT and continuing to 5:00 pm EDT on Thursday,
July 24, by dialing 888-746-9439.
About Millennium Cell:
Founded in 1998, Millennium Cell is based in Eatontown, NJ, and has developed a
multi-faceted patent portfolio, which the company is pursuing in the United
States and internationally surrounding a proprietary process called Hydrogen on
Demand(. The Hydrogen on Demand( system safely generates pure hydrogen from
environmentally friendly raw materials. In the process, the energy potential of
hydrogen is carried in the chemical bonds of sodium borohydride, which in the
presence of a catalyst releases hydrogen. The primary input components of the
reaction are water and sodium borohydride, a derivative of borax. Borax is found
in substantial natural reserves globally. Hydrogen from this system can be used
to power fuel cells or fed directly to internal combustion engines. Millennium
Cell also has a patented design for boron-based longer-life batteries. For more
information visit www.millenniumcell.com or call 866-532-2783.
Cautionary Note Regarding Forward-looking Statements:
This press release may include statements that are not historical facts and are
considered "forward-looking" within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements reflect
Millennium Cell's current views about future events and financial performance.
These forward-looking statements are identified by their use of terms and
phrases such as "believe," "expect," "plan," "anticipate", "on target" and
similar expressions identifying forward-looking statements. Investors should not
rely on forward-looking statements because they are subject to a variety of
risks, uncertainties and other factors that could cause actual results to differ
materially from Millennium Cell's expectations, and Millennium Cell expressly
does not undertake any duty to update forward-looking statements. These factors
include, but are not limited to, the following: (i) the cost and timing of
development and market acceptance of Millennium Cell's hydrogen fuel storage and
delivery system, (ii) the cost and commercial availability of the quantities of
raw materials required by the hydrogen fuel storage and delivery systems, (iii)
competition from current, improving and alternative power technologies, (iv) our
ability to raise capital at the times, in the amounts and at the costs and terms
that are acceptable to fund the development and commercialization of our
hydrogen fuel storage and delivery system, (v) our ability to protect our
intellectual property, (vi) our ability to achieve budgeted revenue and expense
amounts and (vii) other factors detailed from time to time in Millennium Cell's
filings with the Securities and Exchange Commission.
# # #
Millennium Cell Inc.
(a development stage enterprise)
(dollars in millions, except per share amounts)
Three Months Ended Six Months Ended
Statement of Operations (1) Jun., 03 Jun., 02 Jun., 03 Jun., 02
Revenue $0.2 $ - $0.3 $0.4
Cost of revenue 0.2 - 0.3 0.4
Gross margin - - - -
Product development and marketing 1.3 1.5 $2.5 $3.2
General and administrative 1.0 1.0 2.2 2.5
Non-cash charges 0.9 1.1 1.9 2.2
Restructuring expense - 0.1 - 0.1
Depreciation and amortization 0.2 0.2 0.3 0.4
Research and development 0.3 0.6 0.6 0.9
Total operating expenses $3.6 $4.4 $7.5 $9.3
Loss from operations - as reported (3.5) (4.4) (7.5) (9.3)
Loss from operations - adjusted (2) (2.7) (3.2) (5.6) (7.0)
Interest expense (income) 0.8 (0.1) 1.7 (0.3)
Equity in losses of affiliates 0.2 - 0.5 -
Net loss - as reported $(4.6) $(4.3) $(9.6) $(9.0)
Net loss per share $(0.15) $(0.16) $(0.32) $(0.33)
Weighted-average number of shares outstanding 30.5 27.5 29.9 27.4
Reconciliation of Net Loss to Adjusted Net Loss:
Net loss - as reported $(4.6) $(4.3) $(9.6) $(9.0)
Less: Non-cash charges 0.9 1.1 1.9 2.2
Net loss - adjusted (2) $(3.7) $(3.1) $(7.7) $(6.7)
Net loss per share - adjusted (2) $(0.12) $(0.11) $(0.26) $(0.24)
<FN>
(1) Amounts may not foot due to rounding.
(2) Excludes non-cash charges.
</FN>
Millennium Cell Inc.
(a development stage enterprise)
(dollars in millions)
Condensed Balance Sheet (3) Jun., 03 Dec., 02
Unrestricted cash (4) $2.0 $8.0
Restricted cash (5) 11.5 3.0
Other assets 2.5 3.2
Total assets $16.0 $14.2
Secured debentures, net of discount $9.5 $2.4
Unsecured debentures, net of discount - 3.0
Other liabilities 0.9 1.5
Stockholders' equity 5.6 7.3
Total liabilities and stockholders' equity $16.0 $14.2
<FN>
(3) Amounts may not foot due to rounding.
(4) Decrease in cash from $8.0 (Dec., 02) to $2.0 (Jun., 03) was $6.0
million: ($5.4) cash operating loss + ($0.2) working capital + ($0.1) investment
in affiliate + ($0.1) patents and capital additions + ($0.1) deferred financing
costs
(5) Cash restricted is collateral for secured debentures and facility lease.
</FN>