Exhibit 99.1
NEWS: For release July 27, 2004
Contact: John D. Giolli
Millennium Cell Inc.
(732) 542-4000
Investors: Brod & Schaffer, LLC
Betsy Brod/Jonathan Schaffer
(212) 750-5800
MILLENNIUM CELL REPORTS SECOND QUARTER RESULTS
~ Reduces Net Loss and Cash Consumption ~
~ Intensifies Focus on Battery Replacement Solutions for Target Markets ~
Eatontown, NJ--July 27, 2004 --Millennium Cell Inc. (NASDAQ: MCEL), a leading
technology development company which offers a proprietary technology to safely
store, generate and deliver pure hydrogen as an energy source, today reported
results for the second quarter ended June 30, 2004.
The net loss for the second quarter of 2004 was $2.9 million, or $0.08 per
share, compared to a net loss of $4.1 million, or $0.13 per share, in the same
period last year. The reduction in net loss from 2003 is a direct result of
ongoing cost containment activities and the favorable impact of programs with
the U.S. Air Force and the U.S. Department of Energy.
Cash used in operating and investing activities during the second quarter of
2004 declined to $1.3 million from $2.7 million in last year's second quarter.
In the first six months of 2004, cash used was $3.4 million, down from $5.8
million in the prior-year period.
"Our financial results for the period reflect our success in managing the cost
side of the business as we work towards commercialization of our technology,"
said H. David Ramm, Millennium Cell Interim President and CEO. "We are
intensifying our focus on attractive near-term markets while maintaining a
presence in the longer-term transportation market. In the areas of consumer
electronics, portable power, and standby power, we have identified specific
battery replacement opportunities for our Hydrogen on Demand(TM) ("HOD")
systems. In these markets, we believe the value proposition of our technology,
when paired with a fuel cell, can exceed that of traditional batteries in terms
of energy density, cost, and weight."
Mr. Ramm continued, "As part of our shifting focus, we are working to establish
partnerships in key markets over the next several months that will result in the
development of commercial prototypes for manufacture. In the consumer
electronics market, our target is to select a partner and develop an integrated
HOD/PEM fuel cell power device that demonstrates our technology as a reliable
power source for personal computers. In the portable power market, we are making
progress through our existing partnership with Protonex Technology Corporation
to provide the U.S. Air Force with a lighter, longer-lasting power solution to
replace traditional batteries. We currently plan to demonstrate the first
prototype of this technology in early 2005."
A conference call to discuss our second quarter results that will be
simultaneously Webcast is scheduled for July 28th, at 9:00 a.m., EDT. Interested
parties may listen to the live teleconference by dialing 1-800-291-5365
(accessible from the U.S. and Canada) and entering passcode 43563961. A replay
of the call will be available beginning July 28, 2004 at 11:00 a.m. EDT and
available through August 4, 2004, by dialing 1-888-286-8010 and entering in
passcode 40413330.
To listen to a live broadcast of the call over the Internet or to review the
archived call, please visit: www.millenniumcell.com under the "Investor
Relations" section.
About Millennium Cell
Millennium Cell Inc. is engaged in the development of a next generation energy
source for use primarily in consumer electronics and portable power devices as
well as in standby power systems and in selected transportation applications.
The Company's innovative and proprietary Hydrogen on Demand(TM) systems safely
generate high-quality hydrogen through the use of sodium borohydride. This
chemical compound is non-combustible, high in energy density, easily
distributed, and convenient for consumer use. Millennium Cell is developing
technology in partnership with corporate and government entities. For more
information, visit http://millenniumcell.com.
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
and are subject to risks. 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, many of which are
outside of our control, 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)
Millennium Cell's 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 its hydrogen fuel storage and delivery system and its
business plan; (v) Millennium Cell's ability to protect its intellectual
property; (vi) Millennium Cell's ability to achieve budgeted revenue and expense
amounts; (vii) Millennium Cell's ability to generate revenues from the sale or
license of, or provision of services related to, its technology; (viii)
Millennium Cell's ability to form strategic alliances or partnerships to help
promote our technology and achieve market acceptance; (ix) Millennium Cell's
ability to generate design, engineering or management services revenue
opportunities in the hydrogen generation or fuel cell markets; (x) Millennium
Cell's ability to secure government funding of its research and development and
technology demonstration projects; and (xi) other factors discussed under the
caption "Investment Considerations" in Millennium Cell's Annual Report on Form
10-K for the year ended December 31, 2003. Millennium Cell believes that Net
Loss - adjusted, which excludes 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 its management views the business internally.
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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., 04 Jun., 03 Jun., 04 Jun., 03
- --------------------------- -------- -------- -------- --------
Revenue $ 0.1 $ 0.2 $ 0.1 $ 0.3
Cost of revenue 0.1 0.2 0.1 0.2
Gross margin - - - 0.1
Product development and marketing 0.8 1.3 1.8 2.5
General and administrative 0.6 1.0 2.2 2.1
Non-cash charges 0.3 0.9 0.6 1.9
Depreciation and amortization 0.1 0.2 0.3 0.3
Research and development 0.1 0.3 0.1 0.6
-------------------------- ---------------------------
-------------------------- ---------------------------
Total operating expenses $ 1.9 $ 3.6 $ 5.0 $ 7.5
-------------------------- ---------------------------
-------------------------- ---------------------------
Loss from operations - as reported (1.9) (3.6) (5.0) (7.4)
Loss from operations - adjusted (2) (1.6) (2.7) (4.4) (5.5)
Interest expense 1.0 0.3 1.4 0.9
Equity in losses of affiliates - 0.2 - 0.5
Net loss - as reported $ (2.9) $ (4.1) $ (6.3) $ (8.8)
Net loss per share $(0.08) $(0.13) $(0.17) $(0.29)
Weighted-average number of shares outstanding 37.0 30.4 36.2 29.9
Reconciliation of Net Loss to Adjusted Net Loss:
Net loss - as reported $ (2.9) $ (4.1) $ (6.3) $ (8.8)
Less: Non-cash charges 0.3 0.9 0.6 1.9
-------------------------- ---------------------------
-------------------------- ---------------------------
Net loss - adjusted (2) $ (2.6) $ (3.2) $ (5.7) $ (6.8)
Net loss per share - adjusted (2) $(0.07) $(0.11) $(0.16) $(0.23)
<FN>
(1) Amounts may not foot due to rounding.
(2) Excludes non-cash charges.
</FN>
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Millennium Cell Inc.
(a development stage enterprise)
(dollars in millions)
Condensed Balance Sheet (1) Jun., 04 Dec., 03
Unrestricted cash (2) $ 8.2 $ 6.0
Restricted cash (3) 3.0 3.0
Fixed assets, net 0.9 1.0
Patents and licenses, net 0.6 0.6
Other assets 0.6 0.4
--------------------------
Total assets $ 13.3 $ 11.0
--------------------------
Accounts payable and accrued expenses $ 1.7 $ 0.7
Secured debentures, net of discount 2.4 2.4
Unsecured debentures, net of discount 2.7 0.7
Other liabilities 0.4 0.3
Stockholders' equity 6.1 6.9
--------------------------
Total liabilities and stockholders' equity $ 13.3 $ 11.0
--------------------------
<FN>
(1) Amounts may not foot due to rounding.
(2) Increase in cash from $6.0 (Dec., 03) to $8.2 (Jun., 04) was $2.2 million: ($3.3) cash consumed in operations
+ ($0.1) fixed assets additions + $5.3 net cash provided by of PIPE financing + $0.3 exercise of stock options.
(3) Cash restricted is collateral for secured debentures and facility lease.
</FN>
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