IMPCO Reports Third Quarter Fiscal 2002 Results
CERRITOS, Calif., March 14 IMPCO Technologies, Inc. today reported results for its fiscal third quarter ended January 31, 2002.
For the third quarter of fiscal 2002, IMPCO reported a net loss of $7.0 million or 64 cents per share on revenues of $17.3 million. This compared to a net loss of $4.4 million or 42 cents per share for the third quarter of fiscal year 2001 on revenues of $22.0 million. The fiscal year 2002 third quarter included charges for the spin-off of Quantum totaling approximately $1.0 million and restructuring charges at Quantum of approximately $650,000. During the current quarter, revenues of IMPCO's established core business declined $5.0 million versus the same period last year due primarily to a period of sharp economic uncertainty that significantly softened our capital goods related forklift and industrial markets. Quantum, a wholly owned subsidiary, reported revenues during the quarter of $3.5 million, compared to $3.9 million during the prior year third quarter, or a 10 percent decrease.
For the nine-month period ended January 31, 2002, IMPCO reported a net loss of $21.3 million or $2.01 per share on revenues of $67.2 million. Included in this period were charges of $3.5 million or 20 cents per share for the Quantum spin-off and the cancelled secondary equity offering in the first half of the fiscal year. This compared to a net loss of $6.3 million or 65 cents per share for the nine months ended January 31, 2001 on revenues of $76.7 million.
Robert M. Stemmler, CEO and Chairman, said, ``On a quarter over quarter basis, the company's consolidated product revenues, particularly the forklift market, were negatively impacted in the third quarter by the economic downturn. The core business did realize positive trends within the aftermarket automotive sector in expanding markets such as Mexico and South America. We believe the worst is now behind us and we will see an increase in our core business revenue base starting in the fourth quarter.''
In regard to Quantum, Stemmler added, ``Quantum received many new fuel cell application contracts from multiple customers during the quarter which continues to build on our leadership position in fuel storage and fuel control technology and products. The added revenue from these new contracts, in addition to an anticipated substantial increase in their fourth quarter business, will also support our plans to further reduce Quantum's cash burn.'' During the third quarter, Quantum's cash burn was approximately $4.5 million, which compares to $9.5 million during the second quarter of fiscal year 2002. With respect to the spin off of Quantum, Stemmler added, ``In February we filed the Form 10 with the SEC to formally initiate the process of spinning off Quantum. We continue to expect the spin-off to occur during the second calendar quarter of this year.''
General Motors and Quantum Technologies announced in June of last year that they had agreed on a strategic alliance to work together to co-develop technologies to advance the commercialization of fuel cell applications. The strategic alliance includes a 20% equity position in Quantum Technologies by General Motors following the IMPCO spin-off in exchange for access to certain General Motors' proprietary information.
Earnings Call Scheduled for March 14
IMPCO will host a conference call to discuss financial results on Thursday, March 14 at 4:30 p.m. ET, 1:30 p.m. PT. For those of you unable to join us at this time, a playback of this call will be available on Thursday, March 14, 2002, from 3:00 a.m. until March 15, 2002 at 9:00 p.m. Pacific Time. The number for this service is 800-945-0822.
IMPCO is a leading source of advanced alternative fuel systems technology and components for internal combustion engines. IMPCO products enable these engines to function using environmentally friendly gaseous fuels such as propane, natural gas and biogas. IMPCO products improve efficiency and performance while reducing emissions. IMPCO is a major supplier to original equipment manufacturers and the aftermarket in the bus and truck, industrial and power generation markets, and to the automotive aftermarket.
QUANTUM designs, develops, integrates and manufacturers products for gaseous fuel storage, fuel metering and electronic controls for fuel cells. QUANTUM products enable the fuel cell to operate efficiently while meeting the performance requirements in its target markets. QUANTUM target markets are portable power generation, stationary power generation, mobile vehicles and refueling infrastructure. In the alternative fuel industry, Quantum focuses focus on the automotive OEM market.
Except for historical information, the statements, expectations and assumptions contained in the foregoing press release are forward-looking statements. Such forward-looking statements include, but are not limited to, the company's expectations regarding revenues in future periods and the timing and status of the spin-off of Quantum and related financing. Such statements are subject to a number of risks and uncertainties, and actual results could differ materially from those discussed in any forward-looking statement. Factors that could cause actual results to differ materially from such forward-looking statements include, among other factors, prevailing market conditions; the company's ability to design and market advanced fuel metering, fuel storage and electronic control products; the company's ability to meet OEM specifications; the success of the company's recently announced programs with strategic partners; growth in international markets; the level and success of the company's development programs with OEMs; and the company's ability to obtain financing to fund the operations of its Quantum division. Reference should also be made to the risk factors set forth from time to time in the Company's SEC reports, including but not limited to those contained in the section entitled ``Risk Factors'' in its Annual Report on Form 10-K for the fiscal year ended April 30, 2001. The company does not undertake to update or revise any of its forward-looking statements even if experience or future changes show that the indicated results or events will not be realized.
For further information, please contact:
Mr. Dale Rasmussen, Investor
Relations, +1-206-575-1594, or media, Mr. James S. Mitchell, +1-562-860-6666,
ext. 116, both of IMPCO; or Mr. Alan Niedzwiecki for QUANTUM Technologies,
Inc., +1-949-399-4552.
IMPCO TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three and Nine Months ended January 31, 2001 and 2002
Three Months Ended Nine Months Ended
January 31, January 31,
2001 2002 2001 2002
Revenue:
Product sales $20,927,661 $15,948,077 $70,183,074 $62,276,055
Contract revenue 1,115,919 1,367,776 6,480,061 4,952,676
Net revenue 22,043,580 17,315,853 76,663,135 67,228,731
Costs and
expenses:
Cost of product
sales 14,918,342 13,977,859 48,778,541 51,420,612
Research and
development
expense 8,979,470 8,682,535 22,220,111 30,642,662
Selling, general
and administrative
expense 6,175,489 6,099,761 16,784,999 19,384,963
Total costs and
expenses 30,073,301 28,760,155 87,783,651 101,448,237
Operating income
(loss) (8,029,721) (11,444,302) (11,120,516) (34,219,506)
Interest expense
(income), net (110,950) 349,655 136,499 904,124
Income (loss) before
income taxes and
minority interest
in income of
consolidated
subsidiaries (7,918,771) (11,793,957) (11,257,015) (35,123,630)
Income tax expense
(benefit) (3,563,447) (4,728,816) (5,065,656) (14,049,452)
Minority interest
in income (loss)
of consolidated
subsidiaries (3,841) (44,701) 149,909 274,689
Net income (loss)
applicable to
common stock $(4,351,483) $(7,020,440) $(6,341,268) $(21,348,867)
Net income (loss)
per share:
Basic $(0.42) $(0.64) $(0.65) $(2.01)
Diluted $(0.42) $(0.64) $(0.65) $(2.01)
Number of shares
used in per share
calculation:
Basic 10,277,551 10,966,474 9,823,173 10,601,230
Diluted 10,277,551 10,966,474 9,823,173 10,601,230