Trading Update

 

TIDMPTX TIDMPTXU 
 
RNS Number : 4038B 
Protonex Technology Corporation 
27 October 2009 
 

 
 
 
 
 
 
FOR IMMEDIATE RELEASE 
 
 
27 October 2009 
 
 
 
 
PROTONEX TRADING UPDATE 
 
 
DATELINE: SOUTHBOROUGH, MA; Protonex Technology Corporation (LSE: AIM: PTX and 
PTXU), a leading provider of advanced fuel cell power systems, today provides a 
trading update following its fiscal year end on 30 September 2009. The 
Company expects to announce its full year results in January 2010. 
 
 
During the year to 30 September 2009 Protonex made significant progress as it 
finalised several core technologies and prepared for a set of initial product 
launches during 2010. The Company's prime focus has been on developing 
high-value fuel cell products for which there is near term market demand and 
which are scalable. Those products must be robust as well as efficient and 
economic in comparison with alternative sources of energy. 
 
 
Protonex' unique combination of PEM (proton exchange membrane) and SOFC (solid 
oxide fuel cell) systems  is  emerging as a critical advantage for the Company, 
allowing it to offer multi-fuel capabilities and to target a broader set of 
addressable markets.  The Directors believe that the Company is very 
well-positioned to compete in an attractive set of commercial, consumer and 
military markets in 2010 and beyond. 
 
 
TRADING UPDATE 
 
 
Protonex expects to report a significant increase in total revenues for the 
second half of 2009, as compared with the first half of the year.  Based on this 
strong second half, the Directors expect full year 2009 results to be in line 
with their expectations of revenue and cash flow. 
 
 
The US Military continues to increase its focus and associated funding on 
detached, portable, and unmanned systems.  Protonex' cutting-edge products and 
technologies are receiving strong interest from a broad range of U.S. Military 
and government agencies and the Company expects future programme revenue to 
remain robust. 
 
 
The Company expects to report that government programme revenues in the second 
half of fiscal 2009 increased significantly over the first half of the year as 
the new US Administration took office and new contracts again began to flow to 
Protonex. Also, since many of the new programmes are for 12 months or more, the 
Company has a strong backlog of programme revenue for fiscal 2010. 
 
 
PRODUCT PLATFORMS 
 
 
Protonex is tightly focused on developing and launching a series of advanced 
fuel cell products that deliver strong value propositions to a set of targeted 
commercial, consumer and military markets in 2010 and 2011.  The Company 
continues to make steady progress on the development of its four major product 
platforms. 
 
 
1) M250 Product Platform: Protonex' 250-watt methanol-fuelled product platform 
is the Company's most mature and enables several near-term products. 
 
 
  *  The M250-BTM system, targeted initially at the recreational vehicle (RV), marine 
  and renewable energy markets, provides users with clean, quiet and efficient 
  auxiliary power, eliminating the need for  conventional generators or engines. 
 
 
 
The M250-B product is currently scheduled for a 2010 launch into the RV and 
marine markets, both of which appear to be showing signs of recovery as the 
world economy begins to pull out of recession.  As previously announced, Cummins 
(NYSE: CMI), a global leader in power generation and distribution, has partnered 
with Protonex to cooperate in the marketing of the M250-B system into the RV 
market.  The Directors believe that the Cummins commitment provides important 
 confirmation of the M250-B product's viability and value proposition in the 
leisure segment. 
 
 
  *  The M250-CXTM system, a high performance, lightweight and quiet power unit, is 
  designed to charge up to six military batteries simultaneously or to function as 
  a portable auxiliary power unit (APU). By using the M250-CX in certain mission 
  scenarios, the US Department of Defense could switch to rechargeable batteries 
  in the field, thereby reducing overall weight and saving significantly on the 
  hundreds of millions of dollars spent annually on non-rechargeable batteries. To 
  date, Protonex has received $7.75 million in contracts from the US Military to 
  develop this platform. 
 
 
 
Earlier in 2009, Protonex shifted the M250-CX platform to its highest priority 
due to strong military interest and funding potential.  Protonex is scheduled to 
deliver 22 M250-CX units to the US Military for testing and evaluation in late 
2009 and a proposal has been submitted for a significant next-stage programme 
(up to $6 million over 24 months), including a product sales component of over 
100 units. 
 
 
2) Unmanned Aerial Vehicle (UAV) Power Systems: Protonex UAV power systems 
provide critical performance improvements and mission enhancements for small 
UAVs, delivering up to four times the flight duration compared to advanced 
battery systems.  A recent performance indicator is the Company's 23-hour UAV 
flight earlier this month with the US Navy, far surpassing any flights by 
similarly-sized UAVs. 
 
 
Long duration, small UAVs remain one of the highest priorities for the US 
Military and Protonex has emerged as a leader in providing next generation power 
systems for this market space. The Company continues to receive significant, 
ongoing development contracts and funding from the US Air Force, Navy, SOCOM, 
and other branches and is currently in discussions with several UAV prime 
contractors. Protonex UAV power systems are moving rapidly from flight 
demonstrations to deployable products and the Company expects that its first 
shipment of products could take place in mid to late 2010. 
 
 
3) Power Managers: Protonex' BPMTM and SPMTM power managers are small energy 
management devices designed to create an efficient and flexible "smart grid" on 
special forces and regular infantry personnel. Protonex' power managers can 
deliver up to a 30-50% improvement in energy use and corresponding weight. They 
also enable the use of solar, fuel cell, and other alternative power sources. 
 
 
Both the BPM and SPM units are complete as products and are now being tested and 
evaluated by several branches of the US Military domestically and in Iraq and 
Afghanistan. Management expects power managers to be the most likely source of 
near-term product revenue in its 2010 fiscal year. 
 
 
4) SOFC Product Platforms:  Protonex' SOFC platforms have made extensive 
progress in 2009. The Company recently demonstrated the operation of fully 
packaged SOFC systems running on propane and is pleased to announce that two of 
these units have been delivered to the US Army for testing and evaluation. The 
Company  is also making good progress in the processing of more energy dense 
liquid fuels including kerosene, butanol, gasoline, and diesel.  The Company was 
very successful during 2009 in securing military funding to help support its 
overall SOFC development efforts and Management expects this level of support to 
continue. 
 
 
As announced in July 2009, Protonex hired Dr. Caine Finnerty, a leading expert 
in SOFC and former CTO of Nanodynamics Inc.   Subsequently, Protonex has hired 
several other key employees from Nanodynamics to enhance further the 
capabilities of the Company's SOFC team. In addition, the Company 
is participating in the bidding process for substantially all of the 
SOFC-related assets of Nanodynamics Energy Inc, which recently entered into US 
bankruptcy proceedings. 
 
 
SUMMARY 
 
 
The Company's core business strategy remains unchanged and on track.  The 
Company has launched two products in 2009 and expects additional product 
introductions during 2010.  The Directors of Protonex are pleased with the 
Company's 2009 performance and remain confident in the Company's growth 
prospects in 2010 and beyond. 
 
 
 
 
- ENDS - 
 
 
Enquiries 
Protonex Technology Corporation Tel: [phone] 
Scott Pearson, Chief Executive Officer 
Margaret Dorsheimer, Director of Marketing 
 
 
Redleaf Communications Limited     Tel: [phone] 
Press and Investor Relations [e-mail] 
Samantha Robbins 
Paul Dulieu 
 
 
Piper Jaffray Ltd.  Tel: [phone] 
Nominated Adviser 
Michael Covington 
Rupert Winckler 
 
 
 
 
Notes to Editors 
 
 
About Protonex Technology Corporation 
www.protonex.com 
Protonex Technology Corporation develops and manufactures compact, lightweight 
and high- performance fuel cell systems for portable power applications in the 
100 to 1000-watt range. The Company's fuel cell systems are designed to meet the 
needs of military, commercial and consumer customers for off-grid applications 
underserved by existing technologies by providing customizable, stand-alone 
portable power solutions and systems that may be hybridized with existing power 
technologies. The Company is headquartered in Southborough, Massachusetts. 
 
 
 
 
This announcement includes statements which are, or may be deemed to be, 
"forward-looking statements". All statements other than statements of historical 
facts included in this announcement, including, without limitation, those 
regarding Protonex' financial position, business strategy, plans and objectives 
of management for future operations (including development plans and objectives 
relating to Protonex' products and services) are forward-looking statements. By 
their nature, such forward-looking statements involve known and unknown risks, 
uncertainties and other important factors that could cause the actual results, 
performance or achievements of Protonex to be materially different from future 
results, performance or achievements expressed or implied by such 
forward-looking statements. These factors include but are not limited to those 
described in the Admission Document issued in connection with the Company's 
admission to AIM. 
 
 
Forward-looking statements may and often do differ materially from actual 
results. Any forward-looking statements in this announcement speak only as at 
the date of this announcement and are subject to risks relating to future events 
and other risks, uncertainties and assumptions relation to Protonex' operations, 
results of operations, growth strategy and liquidity. 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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