IMPCO Loss Widens on Lower Revenues, Increased R&D
CERRITOS, Calif., Sept. 6 - IMPCO Technologies Inc. (Nasdaq:IMCO), today reported results for its fiscal first quarter ended July 31, 2001.
For the first quarter of fiscal 2002, IMPCO reported a net loss of $5.6 million or 54 cents per share on revenues of $25.9 million. This compared to a net loss of $.6 million or 7 cents per share for the first quarter of fiscal year 2001 on revenues of $29.3 million. During the current quarter, revenues of IMPCO's established core business declined $3.4 million, or 15.1 percent, versus the same period last year due primarily to the slowing worldwide economy. Quantum Technologies, a wholly owned subsidiary, reported product sales during the quarter of $4.6 million, compared to $4.3 million during the prior year first quarter.
Robert M. Stemmler, CEO and Chairman, said, ``The revenue decline of IMPCO's established core business has stabilized over the last few quarters and we expect the additional new business being obtained from companies such as Scania in the U.K., Boss/Jungheinrich in Germany and Ashok Leland in India will yield an increase in revenue towards the second half of this year.''
In regard to research and development expenses, Stemmler added, ``Research and development expenses increased by $5.2 million in the current quarter compared to the prior year quarter.'' Stemmler added, ``The increased expenditures in fuel cell related programs over the past year has yielded very positive results for Quantum Technologies in establishing industry technology and product leadership in hydrogen fuel storage, fuel metering and electronic fuel control for fuel cells. In the past 12 months Quantum has consummated over 10 strategic alliances with leading fuel cell industry participants and has added 18 major fuel cell customers including Toyota, Ford, Bosch, DaimlerChrysler, Arizona Power & Light and others.''
Mr. Stemmler also emphasized the Company's intent to spin-off Quantum Technologies by calendar year end. General Motors and Quantum Technologies announced in June of this year that they had agreed on a strategic alliance to work together to develop the fuel cell industry. The strategic alliance includes a 20% post IPO equity position in Quantum Technologies by General Motors in exchange for certain fuel cell proprietary information, access to General Motors' fuel cell products and marketing support from General Motors and their fuel cell equity partners.
First Quarter Highlights
- QUANTUM and Pinnacle West Partnership Marks Entry into Fuel Cell Stationary Power and Infrastructure
- QUANTUM Demonstrates 10,000 psi Hydrogen Storage Technology for Fuel Cell Vehicles - Dramatic Increase in Range of Fuel Cell Vehicles
- QUANTUM Develops Advanced Hydrogen Storage System for DOE Bus Program - QUANTUM Selected as Supplier for DOE Compressed Hydrogen Gas Bus Demonstration Program
- Echo, the Largest Volvo/Pinto Engine Distributor in the U.S., Appointed as an IMPCO Engine Systems Division Distributor
- QUANTUM Awarded Contract By AeroVironment for NASA-Sponsored Program - QUANTUM Awarded Contract to Design Advanced Hydrogen and Oxygen Storage System for Helios Project
- IMPCO Expands Operations in India With Major Joint Ventures - IMPCO and Minda Industries Ltd. (Part of Minda Group) Form Two JVs to Support Major Alternative Fuel Products Supply Opportunity
- IMPCO Awarded Purchasing Agreement From Jungheinrich That Will Yield $21 Million Over 3 Years
Earnings Call Scheduled for September 6
IMPCO will host a conference call to discuss financial results on Thursday, September 6 at 4:15 p.m. EDT, 1:15 p.m. PDT.
IMPCO is the world's 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 optimize efficiency and performance while reducing emission to the lowest-levels. 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. IMPCO supports its global aftermarket through a network of more than 400 Distributors and 13 company-owned regional offices.
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 at optimal efficiency 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 they focus on the automotive OEM market.
Certain matters discussed in this press release contain forward-looking information that involves risks and uncertainties that could cause actual results to differ materially from current trends. These include the company's ability to design and market advanced fuel metering, fuel storage or electronic control products; the company's ability to meet OEM specifications, the success of the company's recently announced programs with Jungheinrich, AeroVironment, Scania, Ashok Leyland and United Parcel Service; growth in international markets; the timely completion of the Quantum spin-off; the company's anticipated revenue growth; the level and success of the company's development programs with OEMs; and other such risks as cited in IMPCO Technologies, Inc.'s 2001 annual report on Form 10-K and other documents filed with the Securities and Exchange Commission.
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 months ended July 31, 2000 and 2001 July 31, July 31, 2000 2001 Revenue: Product sales $26,599,359 $23,512,432 Contract revenue 2,668,658 2,337,823 Net revenue 29,268,017 25,850,255 Costs and expenses: Cost of product sales 17,993,948 17,712,027 Research and development expense 5,997,562 11,228,803 Selling, general and administrative expense 5,624,507 5,753,634 Total costs and expenses 29,616,017 34,694,464 Operating loss (348,000) (8,844,209) Interest expense 541,428 149,839 Loss before income taxes, minority interest in income of consolidated subsidiaries and dividends (889,428) (8,994,048) Income tax benefit (399,763) (3,597,619) Minority interest in income of consolidated subsidiaries 118,289 199,667 Net loss applicable to common stock $(607,954) $(5,596,096) Net loss per share: Basic $(0.07) $(0.54) Diluted $(0.07) $(0.54) Number of shares used in per share calculation: Basic 8,920,914 10,358,920 Diluted 8,920,914 10,358,920