10.12.2004: Meldung: Quantum Fuel Systems Technologies Worldwide, Inc.: Second Quarter Financial Results
Thursday December 9, 4:01 pm ET
IRVINE, Calif., Dec. 9 -- Quantum Fuel Systems Technologies Worldwide, Inc. (Nasdaq: QTWW - News), a leading designer, manufacturer and integrator of packaged fuel systems for hydrogen fuel cell and alternative fuel applications, today reported results for its fiscal 2005 second quarter ended October 31, 2004. Conference call information is provided below.
For the second quarter of fiscal 2005, Quantum reported revenue of $5.0 million and a net loss of $3.3 million or $0.10 per share. This compared to revenue of $6.7 million and a net loss of $2.0 million or $0.09 per share for the same period of fiscal 2004. The decline in revenue is mainly attributable to lower product sales in the Fuel Cell Systems segment, partially offset by increases in customer funded programs for the development and eventual production of hydrogen-based systems. The decline in product sales and gross profits was the primary reason for the increase in the overall net operating loss for the current period.
Fuel Cell Systems segment revenue during the quarter was $2.6 million, representing a 24% decrease over the prior year"s second quarter revenue, which was $3.4 million. The decline was mainly attributable to lower product sales due to interruptions in our storage system production in order to satisfy evolving customer requirements on product specifications for the bus platform and to perform additional product testing for the SUV platform. Contract revenue during the quarter for the application of fuel delivery systems for fuel cell vehicles increased by 240% from $0.5 million in fiscal 2004 to $1.7 million in fiscal 2005, due to new and expanded programs on behalf of automotive OEM customers and additional military contracts. The Fuel Cell Systems segment operating income for the second quarter decreased from an operating income of $0.6 million in fiscal 2004 to an operating loss of $0.3 million in fiscal 2005 primarily due to lower product sales.
Revenue within the Alternative Fuels segment was $2.3 million during the quarter, representing a 30% decrease from $3.3 million in revenue for the same period of the previous year. This decrease is due primarily to the discontinuance by General Motors" of mid-size automobiles equipped with compressed natural gas systems. Contract revenue during the quarter in the Alternative Fuels segment increased by 11% from $0.9 million in fiscal 2004 to $1.0 million in fiscal 2005, due to new engineering, design and integration activities related to hydrogen internal combustion engines. The Alternative Fuels segment operating loss increased 100% for the second quarter of fiscal 2005 compared to fiscal 2004 from $0.6 million to $1.2 million primarily due to lower product sales and declines in gross margins as a result of lower volumes.
Six Months Results
For the six month period ended October 31, 2004, revenue decreased $3.3 million, or 23% from $14.6 million in the first half of fiscal year 2004 to $11.3 million in the first half of fiscal year 2005, primarily due to lower product volumes in the business segments.
For the six month period ended October 31, 2004, Quantum"s operating loss increased $2.4 million, or 63%, from $3.8 million in fiscal 2004 to $6.2 million in fiscal 2005. This increase is primarily attributable to lower gross profits on product sales in both operating segments, partially offset by an increase in customer funded research and development contract revenues. The Alternative Fuels segment"s operating loss increased by $0.5 million compared to the first six month period of the previous year from $1.5 million in fiscal 2004 to $2.0 million in fiscal 2005, and the Fuel Cell Systems segment reported a $0.2 million operating loss compared to a $1.9 million operating income in the same period of the previous year.
During the six month period ended October 31, 2004, Quantum reported an overall net loss of $5.7 million or $0.18 per share. This compared to a net loss of $3.8 million or $0.16 per share for the same period of fiscal year 2004.
"We remain optimistic about stronger revenue streams for the second half of fiscal 2005 and are looking forward to the closing of the acquisition of Starcraft," stated Alan P. Niedzwiecki, President and CEO. "We are also excited about the increasing number of hydrogen and fuel cell development programs with our OEM customer base, many of these programs leading to commercialization and additional fuel cell vehicles on the road in calendar 2005 and beyond."
Subsequent Event -- Merger Agreement with Starcraft Corporation
On November 23, 2004, the Company entered into a definitive Agreement and Plan of Merger (the "Merger Agreement") with Starcraft Corporation ("Starcraft", Nasdaq: STCR) whereby Quantum will acquire all of the outstanding shares of Starcraft in a tax-free stock-for-stock exchange. Under terms of the Merger Agreement, Quantum will maintain its listing on the Nasdaq National Market and will operate Starcraft as a wholly owned subsidiary. The Company believes that the merger of Quantum and Starcraft will create a well-capitalized company with strong, complementary revenue streams and a solid product and service portfolio to address the mainstream automotive and hydrogen economy markets.
The proposed transaction is expected to close during the first quarter of calendar 2005. If the Merger Agreement is terminated, depending on the nature of the termination event, the Company or Starcraft may be required to pay a termination fee or out-of-pocket expenses to the other party in the maximum amount of $3,250,000.
If all approvals are received and the merger is completed, Starcraft shareholders (other than dissenting shareholders) will receive Quantum common stock for each Starcraft common share outstanding in accordance with the exchange ratio (2.341) fixed pursuant to the terms of the Merger Agreement. In addition, holders of options to acquire Starcraft common shares will have a choice to (a) have the options assumed by Quantum on the same terms and conditions as were applicable immediately prior to the merger and adjusted in accordance with the fixed exchange ratio, or (b) surrender the options in exchange for a cash payment equal to the difference between $15.61 per Starcraft common share and their applicable per-share exercise price. Based on the number of shares outstanding on the date of the Merger Agreement, Starcraft common shareholders would own approximately 40% of the pro forma Quantum common shares outstanding following completion of the transaction.
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 on the Company"s Investor Relations web page: www.qtww.com/investor_relations/index.shtml. The playback will also be available via telephone approximately two hours after the call until December 14, 2004, at 8:55 p.m. Pacific time. The number for this service is (800) 642-1687 or (706) 645-9291, Conference ID# 2738153. For assistance, please call Elaine Lovre at (206) 315-8252.
Quantum is a leading designer, integrator and manufacturer of packaged fuel systems for fuel cells and alternative fuel applications in the transportation, fuel cell stationary power generation and hydrogen refueling infrastructure markets. Leveraging its core competencies in ultra-light weight composite fuel storage, fuel injection, fuel metering, electronic controls, OEM-level systems integration, and years of OEM production experience, Quantum also designs and manufactures hybrid and fuel cell vehicles.
Quantum is a Tier 1 OEM supplier and has product commercialization alliances with General Motors, Sumitomo and IMPCO. Quantum"s customer base includes General Motors, Toyota, Opel, Hyundai, Suzuki, Ford, Sunline, Yamaha, AeroVironment, and the U.S. Army.
Quantum"s website: www.qtww.com.
For more information regarding Quantum, please contact:
Director of Communications and Corporate Support
Source: Quantum Fuel Systems Technologies Worldwide, Inc.