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Ener1 Hits the Grid

Travis Hoium
November 8, 2010

The power you get from your home outlet may soon come from Ener1 (Nasdaq: HEV  ) battery packs, in Russia at least. In Ener1's earnings announcement, the company touted a $40 million contract with the Federal Grid Co., the Russian utility operator. Packs will be used for a bulk energy storage program, and as welcome news to shareholders, most of the revenue will be recognized in the first half of 2011.

Grid storage is the less talked about, but equally exciting, opportunity for Ener1 and A123 Systems (Nasdaq: AONE  ) . This move for Ener1 gives not only some visibility to investors, but is a sign that the company is diversifying production beyond Th!nk electric cars that currently dominate sales.

Companywide sales were $17.3 million, up 112.7% year over year and 7.5% sequentially. Net loss widened to $26.9 million or $0.18 per share. We still aren't seeing great financial results, but as sales increase, capacity will be utilized more efficiently, and we'll slowly see losses fade.

Ener1 saw an uptick in heavy-duty demand, similar to what we saw at Valence Technology (Nasdaq: VLNC  ) in the third quart