SAN FRANCISCO,
Calif. and SHENZHEN, China,
Feb. 9, 2015 /PRNewswire/ --
Highpower International, Inc. ("Highpower
International" or "the Company") (NASDAQ: HPJ), a
developer, manufacturer, and marketer of lithium and nickel-metal
hydride (Ni-MH) rechargeable batteries, and a battery management
systems and battery recycling provider, today announced an update
to a previously announced release concerning an order that
Highpower received from a world-renowned company providing lithium
polymer batteries for backup power products for smartphones.
At that company's request, Highpower has not disclosed its
name in this correction. The Company still expects this
multi-million dollar order to have a meaningful impact on sales for
the year ending December 31,
2015.
Company Adjusts Net Income Guidance Up;
Revenue Guidance Lower Due to Order Timing
Mr. George Pan,
Chairman and CEO of Highpower International, stated, "This order is
quite significant to Highpower's annual plan for 2015. We have been
very pleased with the progression of our business over the course
of 2014, with a strong sales pipeline being supported by improving
margins. We continued to focus on our core competencies, which are
providing high-quality battery products to a diverse customer base,
while investing in our business to provide sustainability over the
long-term as the market continues to transition to lithium battery
technology. During the fourth quarter, we continued to see
improved margins, while penetrating the market with higher-end
battery products and properly utilizing our scale to contain raw
material costs. As a result, we are raising our 2014 guidance range
for adjusted net income of $3.8 to $4.2
million from previously announced $2.5 to $4.0 million, and net income of
$2.6 to $3.0 million from previously
announced $1.5 to $3.0 million. While
we are pleased with our order pipeline, a few orders were delayed
until the first quarter of 2015, which has resulted in Highpower
adjusting its revenue guidance for 2014 to $146 - $148 million. We have been very pleased
with the Company's operational results in 2014, and have continued
to balance our need to position Highpower for long-term growth
while also providing stable returns for our shareholders. We
are very confident in our ability to generate sales growth through
working with top notch international customers in 2015 and look
forward to updating investors further when we report our 2014
financial results in March."
About Highpower International,
Inc.
Highpower International was founded in 2001 and
produces high-quality Nickel-Metal Hydride (Ni-MH) and
lithium-based rechargeable batteries used in a wide range of
applications such as electric buses, bikes, energy storage systems,
power tools, medical equipment, digital and electronic devices,
personal care products, and lighting. Highpower's target customers
are Fortune 500 companies, and top 10 companies in each vertical
segment. With advanced manufacturing facilities located in
Shenzhen, Huizhou, and Ganzhou of China, Highpower is committed to clean
technology, not only in the products it makes, but also in the
processes of production. The majority of Highpower International's
products are distributed to worldwide markets mainly in
the United States, Europe, China
and Southeast Asia.
Use of Non-GAAP Measures
This press release includes adjusted net income,
which is a non-GAAP measure. Adjusted net income is derived by
taking earnings before interest expense (net), taxes, depreciation
and amortization and excludes stock-based compensation expense, the
exact amount of which are not currently determinable.
Furthermore, the expected fourth quarter and full-year 2014
non-GAAP results are subject to completion of the Company's
year-end accounting processes, which include the finalization of
several items that could affect these results. These items include,
among others, the valuation of accounts receivable and inventories,
estimation of certain contingent liabilities, and the finalization
of the Company's provision for income taxes. Final results could
also be affected by certain subsequent events in accordance with
GAAP. The presentation of this additional information is not meant
to be considered in isolation or as a substitute for results
prepared in accordance with U.S. GAAP. The Company
believes this non-GAAP measure is useful to investors as it
provides a basis for evaluating the Company's operating results in
the ordinary course of its operations.
This non-GAAP measure is not based on any
comprehensive set of accounting rules or principles. The
Company believes that non-GAAP measures have limitations in that
they do not reflect all of the amounts associated with its results
of operations as determined in accordance with U.S. GAAP and that
these measures should only be used to evaluate the Company's
results of operations in conjunction with, and not in lieu of, the
corresponding GAAP measures. Management uses non-GAAP
financial measures in evaluating the overall performance of the
Company's business operations. Though management finds these
non-GAAP financial measures useful for evaluating aspects of the
Company's business, its reliance on these measures are limited
because excluded items often have a material effect on the
Company's net income and net income per common share calculated in
accordance with GAAP. Therefore, management uses the non-GAAP
financial measures in conjunction with the comparable GAAP
financial measures.
Forward Looking Statements
This press release contains "forward-looking
statements" within the meaning of the "safe-harbor" provisions of
the Private Securities Litigation Reform Act of 1995 that are
not historical facts. These statements can be identified by
the use of forward-looking terminology such as "believe," "expect,"
"may," "will," "should," "project," "plan," "seek," "intend," or
"anticipate" or the negative thereof or comparable terminology, and
include discussions of the Company's future performance, financial
results, adjusted net income and sales growth.
Such statements involve known and unknown risks,
uncertainties and other factors that could cause the Company's
actual results to differ materially from the results expressed or
implied by such statements, including, but not limited to,
fluctuations in the cost of raw materials; our dependence on, or
inability to attract additional, major customers for a significant
portion of our net sales; our ability to increase manufacturing
capabilities to satisfy orders from new customers; our ability to
maintain increased margins; our dependence on the growth in demand
for portable electronic devices and energy storage systems and
transportation products and the success of manufacturers of the end
applications that use our battery products; our responsiveness to
competitive market conditions; our ability to successfully
manufacture our products in the time frame and amounts expected;
the market acceptance of our battery products, including our
lithium products; our ability to successfully develop products for
and penetrate the electric transportation market; our ability to
continue R&D development to keep up with technological changes.
For a discussion of these and other risks and
uncertainties see "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations" in
the Company's public filings with the SEC. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. The
Company has no obligation to update the forward-looking information
contained in this press release.
CONTACT:
Highpower International, Inc.
Sherry Chen
+86-755-8968-6521
ir@highpowertech.com
INVESTOR RELATIONS:
The Equity Group Inc.
In China
Katherine Yao, Associate
+86-10-6587-6435
kyao@equityny.com
In U.S.
Adam Prior, Senior Vice
President
(212) 836-9606
aprior@equityny.com
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SOURCE Highpower International, Inc.