Exhibit 99.1
NEWS: For release Tuesday, February 17, 2004
Contact: Christine Messina-Boyer
Office: 732-544-5712
Cell: 703-217-2707
MILLENNIUM CELL REPORTS Q4 2003 RESULTS
Eatontown, NJ--February 17, 2004 --Millennium Cell Inc. (NASDAQ: MCEL), a
leading technology development company that has created a proprietary technology
to safely store, generate and deliver pure hydrogen, today reported a net loss
for the quarter ended December 31, 2003 of $2.9 million, or 8 cents per share as
compared to $3.6 million or 12 cents in the same period of 2002. Revenue for the
full year 2003 was $0.5 million, compared to $0.7 million in revenue in 2002.
"2003 was the year that we successfully refocused Millennium Cell's
resources and Hydrogen on Demand(TM) technology toward nearer-term commercial
markets in consumer electronics, standby power, and military portable power,"
said Dr. Stephen S. Tang, Millennium Cell President, CEO, and Acting CFO. "In
addition, we increased our efforts to obtain government funding to offset
significant portions of our research and development costs. As a consequence of
this strategy, we pursued fewer opportunities for the sale of prototype Hydrogen
on Demand(TM) systems for primary propulsion automotive applications in 2003
then we did in 2002, and therefore realized less revenue from these sources in
2003 and more revenue from technology platforms designed for consumer
electronics and standby power applications."
"In January 2004, we announced the signing of a $10 million convertible
financing. Initially, $6 million will be made available in the form of unsecured
convertible debentures, with $4 million in additional unsecured debentures
available at the company's option. This financing provides increased flexibility
to execute our business plan," he said.
Tang further highlighted 2003 successes with partner Samsung in the
development of Hydrogen on Demand(TM) fuel systems for consumer electronic
products; the awarding of a DOE funding grant for research with partner Air
Products & Chemicals Inc; a successful maritime demonstration with Seaworthy
Systems, Anuvu and Duffy Electric Boat; and national recognition in Forbes
magazine as an "unsung hero" in wireless technology.
"At the core of our business model that targets licensing and royalty
income is our intellectual property and know how. In 2003, Millennium Cell was
awarded five new U.S. patents, including a core technology platform patent
covering Hydrogen on Demand(TM) technology (U.S. Patent 6,534,033) and several
patents on improved syntheses of sodium borohydride," Tang said.
A conference call to discuss fourth quarter results is scheduled for
Tuesday, February 17, 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
Tuesday, February 17 at 1:00 pm EDT and continuing to 5:00 pm EDT on Wednesday,
February 18, by dialing 1-888-746-9439.
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(TM). The Hydrogen on Demand(TM) 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. We believe that Adjusted
Net Loss, which excludes both non-cash interest and non-cash equity charges, is
a more meaningful financial measure to compare to prior periods as it is a
better indicator of cash spending and is also how management views the business
internally.
Millennium Cell Inc.
(a development stage enterprise)
(dollars in millions, except per share amounts)
Three Months Ended Fiscal Year Ended
------------------ -----------------
Statement of Operations (1) Dec., 03 Dec., 02 Dec., 03 Dec., 02
-------- -------- -------- --------
Revenue $ 0.1 $ 0.2 $ 0.5 $ 0.7
Cost of revenue 0.1 0.2 0.4 0.7
Gross margin
- - 0.1 -
Product development and marketing 1.3 1.3 5.3 5.8
General and administrative 1.0 0.7 3.8 4.1
Non-cash charges (0.2) 1.0 2.2 4.1
Restructuring expense - - - 0.1
Depreciation and amortization 0.2 0.2 0.7 0.7
Research and development 0.2 0.4 1.0 1.5
--- --- --- ---
Total operating expenses $ 2.5 $ 3.5 $ 12.9 $ 16.3
====== ====== ====== ======
Loss from operations - as reported (2.5) (3.5) (12.9) (16.3)
Loss from operations - adjusted (2) (2.7) (2.5) (10.7) (12.1)
Interest expense (income) (3) 0.6 - 2.9 (0.3)
Equity in losses of affiliates - 0.4 0.5 0.4
--- --- --- ---
Loss before income taxes $ (3.1) $ (3.8) $ (16.3) $ (16.3)
Benefit from income taxes (4) 0.2 0.2 0.2 0.2
Net loss - as reported $ (2.9) $ (3.6) $ (16.1) $ (16.1)
Net loss per share $ (0.08) $ (0.12) $(0.51) $ 0.58)
Weighted-average number of shares outstanding 34.6 28.4 31.6 28.0
Reconciliation of Net Loss to Adjusted Net Loss:
Net loss - as reported $ (2.9) $ (3.6) $ (16.1) $ (16.1)
Less: Non-cash charges (0.2) 1.0 2.2 4.1
---- --- --- ---
Net loss - adjusted (2) $ (3.1) $ (2.6) $ (13.9) $ (11.9)
Net loss per share - adjusted (2) $ (0.09) $ (0.09) $ (0.44) $ (0.43)
<FN>
(1) Amounts may not foot due to rounding.
(2) Excludes non-cash charges.
(3) In the fourth quarter of 2003, the Company determined that non-cash interest expense was overstated by approximately $.01 per
share in each of the first three quarters of 2003. Accordingly, non-cash interest expense was cumulatively adjusted in the
fourth quarter.
Management believes the impact to each of the quarters was not material and will be disclosed in the Company's Form 10K.
(4) Certain prior year amounts have been reclassified to be consistent with current year presentation.
</FN>
Millennium Cell Inc.
(a development stage enterprise)
(dollars in millions)
Condensed Balance Sheet (1) Dec., 03 Dec., 02
-------- --------
Unrestricted cash (2) $ 6.0 $ 8.0
Restricted cash (3) 3.0 3.0
Other assets 2.0 3.2
--- ---
Total assets $11.0 $ 14.2
------------------------
Secured debentures, net of discount $ 2.4 $ 2.4
Unsecured debentures, net of discount 0.7 3.0
Other liabilities 0.9 1.5
Stockholders' equity 7.0 7.3
--- ---
Total liabilities and stockholders' equity $11.0 $ 14.2
------------------------
<FN>
(1) Amounts may not foot due to rounding.
(2) Decrease in cash from $8.0 (Dec., 02) to $6.0 (Dec., 03) was $2.0 million: ($9.8) cash operating loss
+ ($0.1) working capital + ($0.3) investment in affiliate + ($0.1) patents + ($0.3) deferred
financing costs + (0.1) other financing activities and $8.5 impact of PIPE financing.
(3) Restricted cash is collateral for secured debentures and facility lease.
</FN>