Odyne Corp. Reports Second Quarter Results and Updates Outlook

  
    
  
  
    
      Odyne Corporation (OTCBB: ODYC), a leading developer of advanced Plug-In 
      Hybrid Electric Vehicle (PHEV) Technology, today reported its Second 
      Quarter 10-Q financial results and updated its financial and strategic 
      outlook.
    
    
      Second Quarter Results
    
    
      Odyne Corporation reported in the company’s 
      10-Q filing with the Securities and Exchange Commission (SEC) that 
      revenues for the second quarter 2008 were $258,374, 61% higher than the 
      $160,640 reported in the first quarter of 2008. Delivery of parallel 
      PHEV production systems, or “kits” 
      increased to six kits in the second quarter from three kits in the first 
      quarter of 2008. Cost of sales increased to $647,687 in the second 
      quarter of 2008 from $329,158 in the first quarter of 2008. 
      Approximately 30% of that increase, or $91,498, is attributed to costs 
      associated with servicing long-term prototype projects, a business the 
      company has previously announced it is de-emphasizing. Operating 
      expenses for the three months ended June 30, 2008 were $1,075,508, a 5% 
      reduction from the $1,130,983 booked in the first quarter ended March 
      31, 2008.
    
    
      On a year-over-year basis, second quarter 2008 revenues of $258,374 
      compared to $299,274 for the three months ended 2007, a decrease of 
      $40,900 or 14%. Revenue for the three months ended June 30, 2008 was 
      provided primarily by sales of PHEV production systems; there were no 
      PHEV production systems delivered during the three months ended June 30, 
      2007. For the three months ended June 30, 2008 and 2007, revenue 
      generated from long-term fixed price contracts was $2,312 and $299,274, 
      respectively. The change in composition of our revenue reflects a shift 
      in our emphasis from long-term prototype projects to the manufacture and 
      delivery of production systems.
    
    
      Updated Financial and Strategic Outlook
    
    
      Looking to the second half of 2008, Alan Tannenbaum, Odyne’s 
      CEO, continues to see strong demand for plug-in hybrid electric drive 
      systems in the commercial market. “The energy 
      and economic environment have heightened the awareness of our customers 
      of the benefits of PHEV technology. Odyne, through its partner Dueco, 
      Inc., has begun to deliver plug-in parallel hybrid systems to some of 
      the largest utility companies in the U.S.”
    
    
      In order to continue to scale the delivery of kits to Dueco and others, 
      the company has determined that it needs to expand significantly its 
      testing & validation process, both internally and by third-party 
      providers.
    
    
      “Our key objective is to insure that in 
      addition to delivering fuel efficiency and lessening the environmental 
      impact of the utility fleet, we are delivering on the reliability 
      expectations of our customers,” said Mr. 
      Tannenbaum. “Odyne intends to increase 
      its commitment of human and financial resources to the testing and 
      validation of its parallel kits. But until such time as we have 
      furthered this process, Odyne does not expect to meet the production 
      targets set out at the beginning of the year.”
    
    
      While the company has lowered its revenue and kit delivery expectations, 
      it expects to see savings as a result of reducing the number of product 
      lines in development. Going forward, Odyne will focus solely on its 
      Parallel Hybrid Systems, which are less feature-rich than its Series 
      Hybrid Systems. Parallel Hybrid Systems are produced by Odyne at a lower 
      manufacturing cost than Series Hybrid systems, and their price point is 
      significantly lower. “Demand for our products 
      remains strong,” Mr. Tannenbaum noted, “yet 
      price has become an increasingly important consideration for customers 
      in the current economic environment.” 
      Moreover, Odyne is committed to reducing its monthly cash burn rate in 
      other areas. “As a result, despite our 
      incremental investment in testing & validation of parallel systems, we 
      still expect a lower cost structure for the company going forward,” 
      said Mr. Tannenbaum.
    
    
      About Odyne Corporation
    
    
      Odyne Corporation is a clean technology company that develops and 
      manufactures propulsion systems for advanced Plug-in Hybrid Electric 
      Vehicles (PHEV), specifically for medium and heavy-duty trucks and 
      buses. The company has developed a proprietary system combining electric 
      power conversion, power control and energy storage technology, with 
      standard electric motors, storage batteries and other off-the-shelf 
      components that enable vehicles to have lower fuel, operating and 
      maintenance costs with substantially lower emissions. Visit www.odyne.com 
      for more information.
    
    
      Forward-Looking Statements
    
    
      This news release contains certain “forward-looking 
      statements,” related to the business of Odyne 
      which can be identified by the use of forward-looking terminology such 
      as “believes,” “expects” 
      or similar expressions. Such forward-looking statements involve known 
      and unknown risks and uncertainties relating to product development and 
      commercialization, regulatory actions or delays, the ability to obtain 
      or maintain patent and other proprietary intellectual property 
      protection, market acceptance, future capital requirements, competition 
      in general and other factors that may cause actual results to be 
      materially different from those described herein as anticipated, 
      believed, estimated or expected. Certain of these risks and 
      uncertainties are or will be described in greater detail in our filings 
      with the U.S. Securities and Exchange Commission. Odyne is under no 
      obligation to (and expressly disclaims any such obligation to) update or 
      alter its forward-looking statements whether as a result of new 
      information, future events, or otherwise.