Balqon Corporation Announces Third Quarter 2011 Financial Results

HARBOR CITY, Calif., Nov. 17, 2011 /PRNewswire/ -- Balqon Corporation (OTCBB: BLQN), a developer and manufacturer of zero-emissions electric drive systems, lithium battery systems, charging systems and medium to heavy-duty electric vehicles, today announced its financial results for the nine months ended September 30, 2011.

Balqon's total revenues increased by $785,820, or 118%, to $1,450,549 for the first nine months of 2011 from revenues of $664,729 for the first nine months of 2010.  Balqon's revenues in the third quarter of 2011 increased by $712,632, or 583%, to $834,943 from $122,311 of revenues in the third quarter of 2010.  The Company's gross profit increased by $257,326, or 469%, during the first nine months of 2011 as compared to the first nine months of 2010. Gross profit margin improved to 22% during the first nine months of 2011 as compared to an 8% gross profit margin during the first nine months of 2010.  The improvement in Balqon's gross profit both in dollar terms and as a percentage of net revenues is attributable to a number of factors including an increased absorption of manufacturing overhead due to increased sales, higher volumes from the increased sales of electric drive systems, batteries and battery systems, and higher margins during 2011 on the sales of vehicles and parts.

Balqon reported a net loss of $4,684,495 for the first nine months of 2011 as compared to a net loss of $3,049,931 for the first nine months of 2010.  The increase in the net loss of $1,634,564 is due to several factors including increased expenses of professional services, marketing, research and development, depreciation and amortization, and interest on convertible notes.  The Company's available capital resources on September 30, 2011 consisted primarily of approximately $214,085 in cash and cash equivalents. Balqon expects that its future available capital resources will consist primarily of cash on hand, cash generated from its business, if any, and future debt and/or equity financings, if any. As of November 15, 2011, Balqon had a backlog of approximately $17,753,825 as compared to $2,640,429 in November 2010. A significant portion of our backlog consists of drive systems purchased by Winston Global Energy, an affiliate of Winston Chung, Balqon's chairman of the board.

"Our investment into R&D to develop new products such as the Mule M100, Nautilus XR E20 yard tractor, charging systems and medium-duty drive systems for export markets has resulted in an increase in our revenues," said Balwinder Samra, CEO of Balqon Corporation. "Our global sales effort with the addition of a European yard tractor developed jointly with a strategic partner and the development of drive systems for use in buses in India is expected to provide growth during the next year."

About Balqon Corporation

Headquartered in Harbor City, California, Balqon Corporation is a leading developer of zero-emissions electric drive systems, lithium battery systems, charging systems and medium to heavy-duty electric vehicles. Balqon's proprietary electric drive system encompasses complete power management, propulsion, flux vector motor controllers and energy systems. Balqon's electric vehicles and drive systems are marketed globally to companies, governments and municipalities looking for viable and effective ways to reduce their vehicle maintenance and operating costs and lower carbon emissions. Balqon is recognized as a pioneer in commercial electric vehicle technology and development of energy efficient transportation solutions. For more information, please visit www.balqon.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

With the exception of historical information, the matters discussed in this press release, including without limitation, Balqon Corporation's ability to fulfill its backlog and the growing global demand for Balqon Corporation's products are forward-looking statements that involve a number of risks and uncertainties.  The actual future results of Balqon Corporation could differ from those statements.  Factors that could cause or contribute to such differences include, but are not limited to, unforeseen technical issues; Balqon Corporation's ability to attract sufficient capital and labor to manufacture its products; the ability of Balqon Corporation to attract and retain talented individuals; adverse economic and market conditions; changes in technology and governmental regulations and policies; and other events, factors and risks previously and from time to time disclosed in Balqon Corporation's filings with the Securities and Exchange Commission, including, specifically, those factors set forth in the "Risk Factors" section of Balqon Corporation's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.

SOURCE Balqon Corporation