Zoltek Reports Strong Growth In Third Quarter Sales
"In the year and a half prior to fiscal 2010's third quarter, we experienced a sudden, but we believe only temporary, slowdown in the growth of the advanced composite business in general and the wind turbine application in particular due in large measure to the global economic slowdown. After years of growing at a 20-25% annual rate, worldwide growth in electricity generated from wind energy slowed to an estimated 10% per year. Our third quarter sales reflected what we believe is a return to normal long-term growth levels in the industry. Our revenue growth also reflected our ability to supply new customers in our targeted applications. Looking ahead to the rest of this year and into fiscal 2011, we anticipate increased carbon fiber sales to existing and new customers in the wind turbine business, in addition to emerging applications. We are actively pursuing substantial growth opportunities for carbon fiber and related products in China, India and other markets and are encouraged by developments to-date. At the same time, we are continuing to invest substantial time and resources in developing whole new applications for low-cost, high-performance carbon in automobile manufacturing, deep sea oil and gas production and other application categories that have the potential for even faster growth. We believe that positive results from our product and process development efforts and the increased amount of inquiries from potential large-volume users further validate our view that Zoltek is uniquely positioned to lead the next phase of long-term growth in applications for commercial carbon fibers."
"As of June 30, 2010, Zoltek reduced net inventories by $13 million since the beginning of the fiscal year, bringing the inventory level more in line with our revenue," Rumy pointed out. "We have eliminated all of our long-term debt, despite a net loss in the third quarter. Our operating activities generated cash of $9.6 million during the first nine months of fiscal 2010. The company is in excellent shape financially."
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