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China BAK Battery (NASDAQ:CBAK) posted disappointing results Tuesday morning, announcing another quarterly loss. Analysts had expected the company to get back in the black, but instead it posted an .08/share loss. Net revenues were shy of the analyst estimate as well, at $55.6 million (analysts expected $60 million).

Most of the company's business comes from battery packs for mobile phones and other personal electronic devices and that business was essentially flat over the year ago period. The laptop business was down 40% in the last year. Obviously, this is a company that isn’t executing well. To make matters worse, it was also announced that the CFO stepped down over a month ago for personal reasons, but after this dismal quarter, perhaps there is more to the story.

The company didn’t provide specific numbers for guidance, but -- of course -- the CEO is trying to remain upbeat about the potential of the company:

“China’s EV market presents an exciting growth opportunity and we continue to advance our sales and marketing efforts to promote our high-power lithium batteries used in EVs, E-bikes and UPS – energy storage solution. Our batteries now power new EVs launched by China’s major automobile manufacturer, Chery and e-bikes manufactured by leading e-bike manufacturer, Geoby Electric. We expect a significant increase in revenue contribution in this area in fiscal 2011. In addition, our shipments of prismatic battery packs to OEM customers nearly doubled from last year, further strengthening our leading position in cellular phone market. In the year ahead, we expect to further increase our supply of battery packs to valued OEM customers.”

Technically, shares are taking out key support around the 1.90 area today (where the 50 and 200 day moving averages converge). A close below that level likely indicates further selling ahead. So, the jury is still out on this China lithium play. Advanced Battery Technologies (OTCPK:ABAT) and New Energy Systems Group (OTC:NEWN) still remain the best options in this space.

Disclosure: No positions

Source: Jury Still Out on China BAK Batteries' Potential