First Quarter Revenue Increases to $303,000; Gross Profit Improves to $57,000
Axion International Holdings, Inc. (OTCBB: AXIH), a next-generation technology innovator utilizing recycled plastic for high-load industrial products, today announced the availability of fiscal 2010 first quarter financial results for the period ending December 31, 2009.
Axion International reported fiscal 2010 first quarter revenue of $303,000, compared to $4,000 in the fiscal first quarter of 2009. Gross profit for the same period rose to approximately $57,000 compared to $4,000 for the fiscal first quarter of 2009. Net loss in the first quarter of 2010 was $2.6 million compared to a net loss of $697,000 in 2009. Of note, the first quarter results for fiscal 2010 include approximately $1.5 million in stock based compensation to various consultants to the company.
"Our fiscal first quarter was extremely productive in terms of business development, with Axion winning a milestone contract with the US Army to build two new bridges at Fort Eustis," said James Kerstein, CEO of Axion International. "We recognized approximately $252,000 in revenue from this project through December 31st and believe the remainder of the contract will be realized in the next six months as construction is completed. Built using our patented thermoplastic technology, these innovative bridges have given Axion enhanced exposure through military channels, as well as the broader media."
Mr. Kerstein added, "We will continue to make sizable investments in our infrastructure during our growth phase and remain focused on new opportunities and revenue streams, such as our recently announced partnership with ICI to construct state-of-the-art composite containers, which is expected to positively impact our sales potential in 2010."
Highlights for the Fiscal 2010 First Quarter:
• In the quarter ended December 31, 2009, revenue was $303,000 along with gross margin of $57,000.
• Axion continued to implement a comprehensive marketing and sales strategy. Initial target markets include the domestic and international railroad industry, the U.S. military and industrial engineering firms.
• In October 2009, hired Gary Anthony, Axion's new CFO, who has over 25 years of financial and management-level experience.
• Remained committed to significant research and development efforts to extend technology leadership in the thermoplastic industry and conducted new studies with our research partners at Rutgers University.
• Increased facility space in for anticipated growth in 2010 by moving to a larger headquarters in New Providence, New Jersey.
• In November 2009, Axion received orders for the demolition and construction of two bridges at Fort Eustis, VA, which are expected to be completed during fiscal 2010.
• Subsequent to the fiscal first quarter, Axion opened an additional revenue stream by executing an LOI with Innovative Composites International (ICI) to supply thermoplastic material for state-of-the-art composite containers.
As previously announced, Axion filed a Form 8-K on January 13, 2009 regarding the restatement of past financial statements. Today, the Company filed Quarterly Reports on Forms 10-Q\A for the three months ended December 31, 2008, March 31, 2009 and June 30, 2009. These reports are available on the SEC website at: www.sec.gov.
Developed in conjunction with scientists at Rutgers University, Axion International's cutting edge technology has resulted in virtually 100% recycled plastic materials, Recycled Structural Composites (RSCs) that are the first known structural products of their kind that can support wheeled and tracked vehicular loads in excess of 70 tons. Compared to traditional infrastructure materials such as wood, steel or concrete, Axion's innovative products are more durable and significantly longer lasting.
About Axion International
Axion International is a green technology company offering cost-effective alternative infrastructure products and structural solutions. The Company's "green" proprietary technologies allow for the development and manufacture of innovative structural products made from virtually 100% recycled consumer and industrial plastics. Axion's up-cycled products are an economic and sustainable alternative to traditional building materials such as wood, steel or concrete. Developed in collaboration with scientists at Rutgers University, Axion's patented technologies allow for products that are extremely strong, durable, flexible in design, and low maintenance.
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Forward-Looking Statements
This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause Axion's actual results to differ materially from those currently anticipated, including the risk factors identified in Axion's filings with the Securities and Exchange Commission.
Contacts:
Company Contact:
Axion International Holdings
James
Kerstein, Chief Executive Officer
908-542-0888
kersteinj@axionintl.com
Twitter:
@AxionGrowth
or
Media
Contact:
Sean Mahoney
310-867-0670
seamah@gmail.com
or
Financial
Communications Contact:
Trilogy Capital Partners
Darren
Minton, Executive Vice President
Toll-free: 800-592-6067
info@trilogy-capital.com
