Enova Systems Inc (ENA, Financial) filed Quarterly Report for the period ended 2011-09-30.
Enova Systems Inc. has a market cap of $7.8 million; its shares were traded at around $0.248 with and P/S ratio of 0.9.
Net cash used in operating activities was $7,219,000 for the nine months ended September 30, 2011, an increase of $3,911,000 compared to $3,308,000 for the nine months ended September 30, 2010. The increase in cash used in 2011 was primarily due to a net decrease of total liabilities of $2,649,000, of which the major factors were payments made for the partial litigation settlement with Arens Controls L.L.C., inventory purchases utilized in the fourth quarter of fiscal 2010 and the first quarter of fiscal 2011 sales and employee incentive bonus accruals. Non-cash items include expense for stock-based compensation, depreciation and amortization, issuance of common stock for employee services and other losses. These non-cash items decreased by $50,000 for the nine months ended September 30, 2011 as compared to the same period in the prior year primarily due to a decrease in options expense due to the full vesting of option tranches issued in prior years. The decrease in net loss was primarily due to the increase in gross margin and a decrease in administrative expenses when comparing the nine months ended 2011 and 2010. We continued to conserve cash resources by restricting administrative and general expenditures. As of September 30, 2011, the Company had $978,000 of cash and cash equivalents compared to $8,431,000 as of December 31, 2010.
Net accounts receivable decreased by $226,000, or 8%, to $2,624,000 at September 30, 2011 compared to a balance of $2,850,000 at December 31, 2010. The decrease in the receivable balance was due to a decrease in the volume of sales in the third quarter in 2011 compared to the last quarter of 2010 offset by cash collections in the current period. As of September 30, 2011 and December 31, 2010, the Company maintained a reserve for doubtful accounts receivable of $58,000 and $29,000, respectively.
Deferred revenues increased by $29,000, or 94%, to $60,000 at September 30, 2011 compared to a balance of $31,000 at December 31, 2010. The balance at September 30, 2011 is anticipated to be realized into revenue in the fourth quarter of 2011 and is associated with prepayments on purchase orders from certain customers.
Other accrued liabilities decreased by $1,209,000, or 70%, to $530,000 at September 30, 2011 compared to a balance of $1,739,000 at December 31, 2010. The decrease was primarily due to payments for accrued losses on the partial litigation settlement with Arens Controls Company L.L.C. in January 2011 and 2011 payments for accrued professional services. In addition, the accrued warranty balance at September 30, 2011 compared to December 31, 2010 decreased as costs for warranty repairs were greater than warranty accruals for sales during the first nine months of 2011.
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Enova Systems Inc. has a market cap of $7.8 million; its shares were traded at around $0.248 with and P/S ratio of 0.9.
Highlight of Business Operations:
The Companys revenues are concentrated with few customers. For the three and nine months ended September 30, 2011, two customers represented 58% and 39% of gross revenues and four customers represented 55%, 17%, 10% and 10% of gross revenues, respectively. For the three and nine months ended September 30, 2010, two customers represented 51% and 32% of gross revenues and three customers represented 39%, 33% and 14% of gross revenues, respectively.Net cash used in operating activities was $7,219,000 for the nine months ended September 30, 2011, an increase of $3,911,000 compared to $3,308,000 for the nine months ended September 30, 2010. The increase in cash used in 2011 was primarily due to a net decrease of total liabilities of $2,649,000, of which the major factors were payments made for the partial litigation settlement with Arens Controls L.L.C., inventory purchases utilized in the fourth quarter of fiscal 2010 and the first quarter of fiscal 2011 sales and employee incentive bonus accruals. Non-cash items include expense for stock-based compensation, depreciation and amortization, issuance of common stock for employee services and other losses. These non-cash items decreased by $50,000 for the nine months ended September 30, 2011 as compared to the same period in the prior year primarily due to a decrease in options expense due to the full vesting of option tranches issued in prior years. The decrease in net loss was primarily due to the increase in gross margin and a decrease in administrative expenses when comparing the nine months ended 2011 and 2010. We continued to conserve cash resources by restricting administrative and general expenditures. As of September 30, 2011, the Company had $978,000 of cash and cash equivalents compared to $8,431,000 as of December 31, 2010.
Net accounts receivable decreased by $226,000, or 8%, to $2,624,000 at September 30, 2011 compared to a balance of $2,850,000 at December 31, 2010. The decrease in the receivable balance was due to a decrease in the volume of sales in the third quarter in 2011 compared to the last quarter of 2010 offset by cash collections in the current period. As of September 30, 2011 and December 31, 2010, the Company maintained a reserve for doubtful accounts receivable of $58,000 and $29,000, respectively.
Deferred revenues increased by $29,000, or 94%, to $60,000 at September 30, 2011 compared to a balance of $31,000 at December 31, 2010. The balance at September 30, 2011 is anticipated to be realized into revenue in the fourth quarter of 2011 and is associated with prepayments on purchase orders from certain customers.
Other accrued liabilities decreased by $1,209,000, or 70%, to $530,000 at September 30, 2011 compared to a balance of $1,739,000 at December 31, 2010. The decrease was primarily due to payments for accrued losses on the partial litigation settlement with Arens Controls Company L.L.C. in January 2011 and 2011 payments for accrued professional services. In addition, the accrued warranty balance at September 30, 2011 compared to December 31, 2010 decreased as costs for warranty repairs were greater than warranty accruals for sales during the first nine months of 2011.
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