Balqon (BLQN) Reports Blockbuster Quarter with Triple-Digit Gains
Balqon Corporation (OTCBB: BLQN), a manufacturer of electric drive systems, charger systems and battery systems for trucks, tractors, buses, industrial equipment and renewable energy storage devices, operating alongside other alternative energy companies like A123 Systems Inc. (NASDAQ: AONE) and Fuel Tech Inc. (NASDAQ: FTEK), reported a significant increase in its revenues and higher gross profit margins during the third quarter, as its product mix and sales improved across the board.
Third Quarter Highlights
- Revenues increased 583% to $834,943 due to the introduction of several new technologies and drive systems.
- Balqon’s backlog and capital resources should help drive fourth quarter revenues, while international agreements will improve growth next year.
- Balqon recently created a presentation for its University of Riverside event that ties together a lot of its recent developments. Download Now
Sales Expansion Drives 583% Revenue Increase
Balqon reported revenues that increased 583% to $834,943 during the third quarter, driven by newly-introduced technologies and drive systems. Approximately 47% of the revenues were generated from drive systems targeting the medium-sized bus and heavy-duty tractor markets, while two Nautilus XR E20s, a Mule 100 and a 40-foot chassis were also sold to new customers.
The company reported increase in gross margin from 7% in 2010 to 13% in 2011, resulting from increase in sales volume and cost reductions related to battery and charging systems.
New Products Help Drive Future Growth Prospects
Balqon’s investment into research and development has resulted in the introduction of several new products, such as the Mule M100, Nautilus XR E20 yard tractor, charging systems and medium-duty drive systems for export markets. As the first quarter with these products on the market, investors can look forward to similar growth moving forward.
The company has also made progress in building up its distribution channels to sell these new products. Its new European yard tractor was developed with a strategic partner, while it also developed new drive systems for use in Indian buses. These international efforts are expected to enhance growth and diversify its revenues next year.
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