Fallbrook Technologies Files for $50M IPO

2/16/10Follow @bvbigelow

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licensing fees and sales of its bicycle transmission. The company has never been profitable, though, and posted a net loss of $10.5 million that year, according to the filing.

In the first nine months of 2009, Fallbrook said its sales dropped to just $871,000—about half its revenue rate through the same period in 2008—primarily due to a decrease in licensing fees and engineering services. It was at this same time that Fallbrook decided to change its corporate strategy from a model that was based on licensing its technology to a straight contract-manufacturing business.

In its filing, Fallbrook identifies the following markets for its NuVinci transmissions:

—Automotive Accessory Drives: Fallbrook says its NuVinci transmission enables motorized accessory drives—such as alternators and air conditioners—to maintain an optimal operating speed regardless of whether engine speed is increasing or decreasing. The company estimates the global market for accessory drives at $2.4 billion.

—Electric Vehicles: Fallbrook says its technology enhances the commercial potential of electric vehicles, and estimates its potential global market in the sector at $1.2 billion. Fallbrook says its transmission improves EV battery life and increases operating range.

—Bicycles: Fallbrook says its NuVinci design allows a rider to shift seamlessly. The company, which estimates the global market at $1.1 billion, says it expects to sell 24,000 of its bicycle transmissions this year.

—Lawn Care Equipment: Eyeing what it estimates is an estimated global market of $65 million, Fallbrook says its transmission can reduce fuel consumption, emissions, and noise in lawn mowers and other lawn care equipment.

—Small Wind Turbines: Fallbrook says the NuVinci can improve the amount of energy captured by these turbines. The company estimates the global market at $1 billion.

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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