Attention Business Editors:
Westport reports first quarter financials
VANCOUVER, Aug. 13 /CNW/ - Westport Innovations Inc.
WPT:TSE/ASE
Westport Innovations Inc. (WPT: TSE) today reported results for its first
fiscal quarter ended June 30, 1999, and reviewed its operations. The
highlights of the quarter included significant progress in original equipment
product development programs, the launch of a new program with Ford Motor
Company, the strengthening of Westport's capital base through a successful
equity offering and a listing on the Toronto Stock Exchange.
For the quarter, Westport reported a net loss of $2,010,064, or $0.07 per
share, compared with $1,104,808, or $0.05 per share, a year ago. The increase
was attributable primarily to R&D expenses for expanded product development
programs, general and administrative costs associated with corporate growth,
and depreciation expense reflecting lab and equipment additions.
At June 30, 1999, shareholders' equity was $15,922,517, which included
$13,336,130 in cash and short-term investments. In May 1999, the Company
completed a special warrant private placement which raised net proceeds of
$9,583,165; the warrants were subsequently converted into 4,683,854 shares of
new common stock. On June 30, 1999, Westport's shares were listed on the
Toronto Stock Exchange under the symbol ''WPT.''
The quarter was particularly eventful in OEM product development. The
Company's program with Cummins Engine Company Inc. for stationary power
applications successfully completed a 1,000 hour durability test of prototype
HPDI injectors designed for a state-of-the-art ''common rail'' diesel engine.
Shortly after the end of the quarter, Westport began testing the HPDI
injectors in the Cummins' engine, at various speeds and power settings.
In June 1999, Westport announced a joint research and development program
with Ford to develop a prototype automobile engine incorporating Westport's
HPDI technology. Following completion of the prototype program, planned for
late 2000, a decision will be made about moving ahead with development of a
commercial HPDI-equipped engine. The Ford project will represent the first
Westport HPDI system designed for light-duty diesel engines. Interest in
light-duty diesel engines has intensified as a means of raising the fuel
efficiency of autos, light trucks, and sport utility vehicles.
In order to accommodate its expanding development activities, Westport
relocated in May 1999, to new quarters providing larger development and test
facilities, and room for the engineering, technical, and project management
staff added over the past year. Also in May, David Pritchard, formerly Chief
Financial Officer of Creo Products Inc., joined Westport's senior management
team as CFO.
Commenting on the quarter, David R. Demers, President and Chief Executive
Officer, said, ''With accelerating momentum in our OEM product development
programs and the launch of the new Ford project, Westport is off to a strong
start in fiscal 2000. Given our progress to date, as well as the recent
additions to the management team and the R&D staff, a TSE listing and a
fortified capital base, our expectations are high for achieving increasingly
challenging corporate milestones over the rest of this year and beyond.''
Westport is commercializing patented High Pressure Direct Injection
(HPDI) combustion technology that allows diesel engines to operate on
cleaner-burning gaseous fuels, such as natural gas, without sacrificing
performance or fuel economy. HPDI enables diesel engines to meet challenging
emission targets for nitrogen oxides (NO(x)) and particulate matter (PM) set
in the U.S. and Europe. The technology also significantly reduces carbon
dioxide (CO2) emissions to meet proposed global warming initiatives. Westport
intends to deliver HPDI technology for a wide variety of diesel engine
applications in partnership with leading diesel engine manufacturers around
the world. In September 1998, Westport announced its first such alliance with
Cummins Engine Company Inc., the world's largest producer of diesel engines
over 200 horsepower. On June 10, 1999 Westport also announced a development
project with Ford Motor Company.
Further details can be found on the company's website at
www.westport.com.
The Toronto and Alberta Stock Exchange has neither approved nor
disapproved the information contained herein
-0- 08/13/1999 |
