Quantum Reports Third Quarter Fiscal Year 2003 Results
IRVINE, Calif., March 17 -- Quantum Fuel Systems Technologies Worldwide, Inc. , today reported results for its fiscal 2003 third quarter ended January 31, 2003.
For the third quarter of fiscal year 2003, Quantum reported a net loss of $4.0 million or $0.22 cents per share on revenues of $6.0 million. This compared to a net loss of $10.2 million or $0.72 cents per share for the third quarter of fiscal year 2002 on revenues of $3.5 million.
Quantum reported revenues within its Fuel Cell & Hydrogen Systems division of $2.9 million during the quarter, representing a 149.3% increase over the third quarter in fiscal year 2002. This increase is primarily due to a record shipment of hydrogen storage systems and progress made on development programs with Toyota, General Motors, Suzuki and other OEM customers. Within the Fuel Cell & Hydrogen Systems division, fuel cell-related engineering development contract revenues increased 58.3% to $1.9 million during the third quarter of fiscal year 2003 compared to $1.2 million during the third quarter of fiscal year 2002. This increase is due to new fuel cell system development programs for automotive OEMs. The increase in revenues also reflects Quantum's successful launch of its hydrogen refueling and infrastructure systems. In addition, Quantum reported revenues within its Alternative Fuels division of $3.1 million during the quarter, representing a 31.0% increase over the third quarter in fiscal year 2002.
Alan P. Niedzwiecki, President and Chief Executive Officer, said, "We achieved significant accomplishments this quarter on our path-to-commercialization plan. We completed several key programs. We expanded current programs with existing customers and attracted new customers beyond our traditional automotive OEM customer base. Our state-of-the-art hydrogen storage systems were the first 10,000-psi (700 bar) tanks successfully certified and tested on a vehicle. These systems were tested on General Motors' HydroGen3 vehicle, which extended the range by 60-70% compared to an equivalent-sized 5,000-psi (350 bar) system. We also added the U.S. Army as a customer, who has demonstrated a strong interest in our hydrogen storage systems, refueling infrastructure technology, and integration expertise.
"These new programs and expanded customer base are strengthening our financial position. During the quarter, we recognized positive trends in our revenue growth, product margins, operating performance, and cash used by our operations," added Mr. Niedzwiecki.
Nine Months Results
For the nine-month period ended January 31, 2003, Quantum reported a net loss of $14.3 million or $0.86 cents per share on revenues of $16.2 million. This compared to a net loss of $35.1 million or $2.49 per share for the same period of fiscal year 2002 on revenues of $16.3 million.
During the nine month period ended January 31, 2003, operating costs and expenses decreased $20.5 million, or 40.1% compared to the same period in fiscal year 2002. This decrease was driven by focused development efforts and lower research and development expenditures as a result of cost reductions and under customer-funded research and development programs.
Third Quarter Highlights
-- Quantum shipped additional hydrogen storage tank and metering
assemblies to Toyota for their fuel cell hybrid vehicle lease program.
-- Quantum added the U.S. Army to its customer base. Quantum will
develop conceptual transportation and energy systems for the U.S.
Army's National Automotive Center (NAC) located in Warren, MI. The
systems will address a variety of fuel cell applications including
vehicles, power generation units, and the hydrogen-refueling
infrastructure.
-- Quantum's hydrogen storage and delivery system was the first
10,000-psi (700 bar) system to be successfully certified and tested on
a vehicle. This system helps General Motors and other OEM customers
move closer to developing fuel cell vehicles with a range equal to or
better than conventional gasoline vehicles. Extending range is one of
the keys to fuel cell commercialization.
-- Quantum shipped its second portable hydrogen refueling system to a
major automotive OEM (original equipment manufacturer) customer to
support its pre-production prototype hydrogen fuel cell vehicles.
-- Quantum supplied its gaseous fuel injector for Ford's environmentally
friendly hybrid Model U, unveiled at the 2003 North American
International Auto Show.
-- Quantum's contract services initiative gained momentum with an
agreement to provide emissions development verification testing for
Catalytic Solutions, Inc.
-- Quantum completed its first registered public offering. This offering
and the related over-allotment to the underwriters raised $9.1 million
in gross proceeds (before underwriting discounts and commissions and
offering expenses).
Earnings Call Scheduled:
March 17, 2003
1:30 p.m. Pacific time (4:30 p.m. Eastern time)
Conference Call Number: (785) 832-1077
Participants should call this number 5 to 10 minutes prior to the starting time. An operator will check your name and organization and ask you to wait until the call begins. For those of you unable to join us at this time, a playback of this call will be available until March 18, 2003 at 11:59 p.m. Pacific time. The number for this service is (800) 934-4548. For assistance, please call Elaine Lovre at (206) 315-8252.
QUANTUM designs, manufactures and supplies components and integrated fuel systems to original equipment manufacturers for use in alternative fuel vehicles, fuel cell applications, and hydrogen refueling systems. These fuel cell applications include transportation and industrial vehicles, and stationary and portable power generation. QUANTUM's advanced fuel systems comprise the fuel storage, fuel metering, control, and injection of gaseous fuels to improve efficiency, enhance power output, and optimize emissions from fuel cell applications and internal combustion engines that operate on natural gas, propane, or hydrogen. More information about QUANTUM can be found on its website at www.qtww.com .
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 and cash from operations in future periods; trends in certain operating results; commercialization of the Company's products; and the results of new customer programs. 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; development and growth in the fuel cell and alternative fuel markets; 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. 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, 2002. 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.
QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE, INC.
CONDENSED STATEMENTS OF OPERATIONS
Unaudited
Three and nine months ended January 31, 2002 and 2003
Three Months Ended Nine Months Ended
January 31, January 31,
2002 2003 2002 2003
Net revenue:
Product sales $2,204,919 $3,639,331 $11,389,496 $10,269,584
Contract
revenue 1,311,795 2,362,049 4,896,695 5,952,241
Total
revenue 3,516,714 6,001,380 16,286,191 16,221,825
Costs and
expenses:
Cost of
product sales 4,374,066 3,981,060 18,512,553 12,753,293
Research and
development
expense 7,352,835 4,030,369 26,281,660 11,001,380
Selling, general
and
administrative
expense 1,716,449 2,235,169 6,350,006 6,887,206
Total costs
and expenses 13,443,350 10,246,598 51,144,219 30,641,879
Operating loss (9,926,636) (4,245,218) (34,858,028) (14,420,054)
Interest expense
(income), net 288,103 (35,133) 301,302 25,506
Other expense
(income), net 0 (172,742) (9,555) (102,751)
Provision for
income taxes 0 0 0 800
Net loss
applicable
to common
stock $(10,214,739) $(4,037,343) $(35,149,775) $(14,343,609)
Net loss
per share:
Basic $(0.72) $(0.22) $(2.49) $(0.86)
Diluted $(0.72) $(0.22) $(2.49) $(0.86)
Number of shares
used in per
share
calculation:
Basic 14,142,036 17,979,925 14,142,036 16,702,419
Diluted 14,142,036 17,979,925 14,142,036 16,702,419
For more information, please contact:
Dale Rasmussen
Investor Relations
206-315-8242
drasmussen@qtww.com
Brian Olson
Chief Financial Officer
949-399-4569
bolson@qtww.com
Cathy Johnston
Director of Communications
949-399-4548
cjohnston@qtww.com
(C) 2003 QUANTUM Fuel Systems Technologies Worldwide, Inc.
17872 Cartwright Road, Irvine, CA 92614
Phone 949-399-4500 Fax 949-399-4600
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