ENER: Charge!

I was looking at Energy Conversion Devices' income statement and found they had an unusual profit last year . I was hoping to find that this was a sign that they were becoming profitable. However, their letter to the editor warns about cash use for research and a need for more funds. This tells me they may sell more stock or increase debt. The run in ENER stock price (+200% 2005/6) may be a sign of a good future or increased risk. Since the company is not selling much and is dependent on technology patents and licenses, it is hard to say. They have greatly increased profits from licenses. Note: I am not a bull or bear kind of investoblogger, I just get "some" facts ma'am...

The company reports on the unusual profit in the annual report and letter to shareholders:

ECD Ovonics went from a net loss from continuing operations of $49.2 million in fiscal 2004 to a net income from continuing operations of $49.5 million in the same period of 2005. Primary contributors to the change in net income were as follows:


United Solar Ovonic had a gross profit of $4.4 million in 2005 versus a gross loss of $6.3 million last year.


For the fiscal year 2005, net income was favorably impacted by a one-time noncash revenue of $79.5 million realized by the Company for the additional rights licensed to Cobasys and by an $8.0 million distribution from Cobasys to partially reimburse the Company for legal expenses in connection with the patent litigation resolution in July 2004. The license revenue was in the form of an option (exercised in May 2005) granted by Chevron to the Company to purchase 4,376,633 shares of common stock at a price of $4.55 per share.


In December 2004, the Company received $2.3 million, net of taxes, in connection with the transfer of Chevron's interest in Ovonic Hydrogen, which the Company recognized as an extraordinary item (gain) in fiscal year 2005.


Partially offsetting the above, ECD Ovonics had $2.7 million in expenses in fiscal year 2005 related to Sarbanes-Oxley compliance, an increase of $2.2 million over 2004.

(Sorry for the cut and paste from the web site)

Cobasys, a joint venture between ECD Ovonics and Chevron, announced that it has received battery pack purchase orders for hybrid vehicle applications from world class automotive companies. These battery systems will be "plug and play" integrated solutions manufactured and assembled at Cobasys' Springboro, Ohio, facility to meet customer program timing. Cobasys also confirmed that it is in the advanced stages of hybrid vehicle prototype development and testing for several transportation and vehicle manufacturing companies located in North America, Europe and Asia.

Energy Conversion Devices has an interesting mix of products including CD-r technology, which it liscences.

The future of hybrid cars lithiumclude Litium Ion or NiMH.
compare battery types:
web site that compares battery types

Hybridcars.com

Johnson Controls

JCI (NYSE) $67.88

I looked at other battery companies:

Exide is a large company and supplies John Deere

2 small interesting companies with a chance ( a chance) of success...

Valence Technology VLNC uses less cadmium for a more envifriendlylly freindly battery, but may not be a strong company.

LTHU.OB

I am not a bull or bear kind of investoblogger, I just get some facts ma'am...