Quantum Fuel Systems Technologies Worldwide cuts its losses on increased revenues

13 Sep 2010

Renewable fuels and energy storage technology developer Quantum Fuel Systems Technologies Worldwide increased its revenues for the first quarter of fiscal 2011 by $500,000 after securing its first orders from electric vehicle manufacturer Fisker Automotive.

In the first quarter of 2011, Quantum generated revenues of $3.6m and reported a net loss of $1.6m in the first quarter of fiscal 2011, showing a marked reduction on the net loss of $12.3m it incurred in the first quarter of fiscal 2010.

Its loss per share was cut to a twelfth of the loss burden its shares held last year to $0.01 per share in the first quarter of 2011 compared to $0.12 per share in the first quarter of fiscal 2010.

The company attributes the rise in revenues to increased product sales, including an increase in its initial Q-Drive hybrid drive product shipments to Fisker Automotive. The quarter also included the activities of the company’s wholly-owned subsidiary Schneider Power, which it acquired in April 2010.

Schneider Power generated $300,000 in revenue during the recent quarter from energy sales and from construction management contract services on an overall operating loss that remained the same at $4.6m.

The company reduced its expenses relating to its electric drive and fuel systems as well as its renewable energy division by $300,000 to $2.3m in the first quarter of fiscal 2011.

Quantum’s overall revenue for its electric drive and fuel systems division rose $200,000 above the first quarter of fiscal 2010, enabling it to cut its operating loss for the electric drive and fuel systems segment by $100,000 compared to the first quarter of fiscal 2010.

But while its electric drive and fuel system product sales rose by $400,000 compared to the first quarter of fiscal 2010, its contract revenue has dropped by $200,000 since the first quarter of fiscal 2010.

The contract revenue was mainly derived from system development and application engineering of its products under funded Fisker Automotive contracts, in addition to funded contract work with the US military and other government agencies. The company recently announced a first phase production order of $30m under a contract with Fisker Automotive.

‘We anticipate these orders will have a positive impact on our 2011 fiscal year operating performance. We continue to invest in pre-production activities related to the Fisker vehicle programme and are excited about the full production launch in February 2011,’ said Quantum’s president and CEO Alan Niedzwiecki.

Its renewable energy segment’s revenues improved, buoyed by $100,000 from energy sales related to its Providence Bay Wind Farm and $200,000 from construction management contract services. This left the segment with an operating loss of $300,000, which included $600,000 in operating expenses during the latest quarter.

Niedzwiecki said, ‘Our renewable energy business has many projects in the pipeline and we are in the full-scale development phase on some of these projects and expect them to be commissioned in the 2011 to 2012 timeframe.’

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