Quantum Technologies Reports Fiscal 2006 First Quarter Financial Results
IRVINE, Calif., Sept. 8 -- Quantum Fuel Systems Technologies Worldwide, Inc. , a leading designer, manufacturer and integrator of packaged fuel systems and accessories for specialty vehicles and applications including hydrogen fuel cell, hybrid, and alternative fuel vehicles, today reported results for its fiscal 2006 first quarter ended July 31, 2005. Conference call information is provided below.
Net revenue reached $47.4 million in the first quarter of fiscal 2006 compared to $6.4 million in the first quarter of fiscal 2005. This increase in overall revenue is a result of the inclusion of Tecstar Automotive Group's operations, which contributed $43.0 million to consolidated revenues in the first quarter.
The Company's net loss increased $5.7 million from $2.4 million in the first quarter of fiscal 2005 to $8.1 million in the first quarter of fiscal 2006 mainly due to increased operating losses incurred in the Quantum Fuel Systems segment as a result of lower product sales and contract revenues, the addition of Tecstar Automotive Group operations which had an operating loss of $1.3 million, and a $1.2 million increase in corporate expenses.
Quantum Fuel Systems operating segment revenues during the quarter were $4.4 million, representing a 31% decrease over the prior year's first quarter, which was $6.4 million. This decrease is primarily due to lower sales of hydrogen fuel metering and fuel storage systems for fuel cell vehicle applications. The decrease is also attributable to lower contract revenue, which was a result of increased cost-to-complete estimates of certain customer funded programs, which impacted the contract revenue recognized during the period based on a percentage completion revenue recognition policy.
Tecstar Automotive Group operating segment revenues during the quarter were $43.0 million, representing an approximate 5% increase on a pro forma basis compared to the first quarter of fiscal 2005. Product sales for the Tecstar Automotive Group totaled $41.2 million during the first quarter of fiscal 2006, consisting of $23.5 million in second-stage automotive manufacturing revenues, $15.5 million in automotive OEM accessory parts revenues, and other product sales of $2.2 million. Cost of product sales for the Tecstar Automotive Group was $37.9 million in the first quarter of fiscal 2006. Contract revenue for the Tecstar Automotive Group was $1.8 million for the first quarter of fiscal 2006.
Alan P. Niedzwiecki, President and CEO, stated, "Although we reported significant revenue growth during the first quarter due to the Tecstar acquisition, we did experience a shortfall in development program revenue. The costs of revenues, particularly on the development programs, were higher than expected and this impacted our overall operating results. The activity on hydrogen-related development programs remains strong and we are optimistic that these programs will result in increased hydrogen fuel system product sales during the second half of fiscal 2006, compared to the first half of fiscal 2006."
Mr. Niedzwiecki added, "We continue our efforts to integrate the two businesses and have made meaningful strides, but also recognize that we need to continue to focus on reducing our operating expenses and cost structure. In terms of business development activities, we believe that we are developing valuable relationships with new OEMs in both our hydrogen and mainstream automotive segments that will lead to new business opportunities. Furthermore, we see the rising price of oil as a major driving factor in our alternative fuels and fuel cell vehicle business, and we believe the demand for our products will increase both domestically and internationally."
Quantum Fuel Systems Technologies Worldwide, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended July 31,
2004 2005
Revenue:
Net product sales $3,358,003 $43,273,992
Contract revenue 2,996,944 4,098,352
Total revenue 6,354,947 47,372,344
Costs and expenses:
Cost of product sales 2,663,193 40,441,322
Research and development 3,711,415 6,626,699
Selling, general and administrative 2,199,104 7,051,312
Amortization of intangibles 414,944 1,116,944
Total costs and expenses 8,988,656 55,236,277
Operating loss (2,633,709) (7,863,933)
Interest income 208,585 290,433
Interest expense -- (575,283)
Income tax provision (800) (221)
Net loss $(2,425,924) $(8,149,004)
Basic and diluted loss per share $(0.08) $(0.15)
Number of shares used in the basic
and diluted per share calculation 31,686,322 52,844,605
Cash Flow Information:
Depreciation and amortization $1,252,354 $2,686,119
Cash used in operating activities 2,629,339 22,749,132
Capital expenditures 692,200 1,178,668
April 30, July 31,
2005 2005
Balance Sheet Information:
Cash and cash equivalents $11,736,688 $5,549,477
Marketable securities:
Maturing within one year 32,101,357 28,152,486
Maturing after one year 4,001,182 3,237,390
Property & equipment, net 20,280,405 20,373,859
Goodwill & intangibles, net 154,736,201 153,236,384
Total assets 277,661,780 279,054,156
Current liabilities 38,797,585 35,661,744
Long-term debt 19,656,162 32,202,196
Stockholders' equity 219,208,033 211,190,216
Working capital 58,954,852 65,646,823
About Quantum
Quantum is a leader in powertrain engineering, system integration, and manufacturing of packaged fuel systems and accessories for specialty vehicles and applications, including fuel cells, hybrids, alternative fuels, hydrogen refueling, new body styles, mid-cycle vehicle product enhancements, and high performance engines and drive trains for OEMs and consumers of specialty equipment parts and accessories. Quantum also designs and manufactures hybrid and fuel cell vehicles.
Quantum has product commercialization alliances with General Motors, AM General, Sumitomo, and IMPCO. Quantum's customer base includes General Motors, Toyota, Opel, Hyundai, Suzuki, Ford, DaimlerChrysler, Sunline, Yamaha, AeroVironment, and the U.S. Army.
More information can be found about Quantum's products and services at www.qtww.com.