AFS Announces First Quarter Results
CALGARY, May 29 /CNW/ - Alternative Fuel Systems Inc. (TSE:ATF) ("AFS" or
the "Company") is pleased to announce the operating and financial results for
the first quarter ended March 31, 2001. AFS exited the first quarter with a
strong balance sheet including a cash position in excess of $13 million. The
Company now has the capital resources and many of the human resources needed
to accelerate sales and marketing efforts and ramp up its research and
development programs. AFS will be moving into its new, state-of-the-art leased
facility over the next few months which will house all of the Company's
employees and provide increased engine testing and manufacturing capability.
Recently appointed directors, Charles Hantho and Darshan Kailly give AFS a
strengthened Board which will play an active role in plotting the future
course of AFS.
Selected financial data for the first quarter ended March 31, 2001 and
the related prior year period are shown below:
<<
Amounts in 000's of Cdn. $ Three months ended Three months ended
(except per share data) March 31, 2001 March 31, 2000
(Unaudited) (Unaudited)
------------------------------------------------------------------------
Revenue $1,131 $366
Gross Margin 436 247
R&D, G&A, Sales & Marketing expenses 1,112 828
Net loss (653) (799)
Net loss per share (0.01) (0.03)
Cash and short-term investments,
end of period 13,057 2,148
>>
During the first quarter ended March 31, 2001 AFS recorded sales of $1.1
million as compared to sales of $366,000 for the comparable period in the
prior year. Operating cash flow for the three-month current period was
negative $509,000 while the loss for the period was $653,000 ($0.01 per
share). This compared to a negative cash flow of $567,000 in the prior year
period and a loss of $799,000 ($0.03 per share).
The delivery of 250 Sparrow systems and related services to AFS' Iranian
client, IDEM, accounted for $0.8 million of the total revenue. The Company
also delivered engine management systems, components and engine development
services to clients in Mexico, Australia, Canada, Japan, Europe and the U.S.
during the first quarter.
AFS' research and development, general and administrative and product
marketing expenses all increased over the past year reflecting staff additions
and increased activities in these areas. The Company's general and
administrative costs for the 2001 first quarter were impacted by one-time
costs of approximately $100,000 related primarily to moving expenses and costs
associated with the recent TSE listing. Included in 2001 product marketing
costs were expenses associated with travel and attendance at trade shows in
Detroit and Montreal. In April and May AFS attended trade shows in Brisbane,
New Delhi and Calgary and for the remainder of the year the Company is
scheduled to attend shows in Malmo (Sweden), Stuttgard, San Francisco and Sao
Paulo.
As part of AFS' strategy to develop cost-effective, natural gas and dual
fuel solutions for engine platforms with broad market applications, the
Company continues to devote significant engineering efforts to the GM 5.3
litre Vortec, Cummins ISC and Navistar DT466 engines.
AFS currently has a Sparrow dedicated natural gas system installed in a
GMC Sierra truck, which is showing excellent acceleration and drivability
while meeting the performance expectations of this class of vehicle. This
popular engine, currently being used by most of GM's light duty trucks and
sport utility vehicles across North America, has proved difficult for
traditional compressed natural gas ("CNG") fuelling systems because of its
high level of integrated control. AFS has showcased the converted Sierra truck
to several U.S. and Canadian conversion outfitters who have expressed interest
in this platform. As is the case with all of AFS' products, the eventual goal
is to sell directly to original equipment manufacturers ("OEM's"). The Company
is continuing with performance, durability and emissions testing on the Vortec
system, with commercialization scheduled for the latter part of 2001.
The Company's work on the Cummins ISC diesel engine is continuing and AFS
now has this engine running on AFS' Eagle dual fuel engine management system.
Testing and system optimization will occur over the next three to six months.
This platform represents the first electronic, fuel-injected diesel engine
that AFS' engineers have worked on. Conversion of this widely used medium duty
engine, gives AFS potential market opportunities in the U.S., Australia,
Mexico and the U.K.
In April, AFS received a Navistar DT466 diesel engine from a private
diesel engine remanufacturing company in Dallas as part of a project
development agreement. Under terms of the agreement, AFS will develop its
Sparrow CNG system for this popular platform, which is found in a multitude of
medium-duty trucks across North America. The development program will include
independent testing in the U.S. to ensure emissions meet the stringent
Environmental Protection Agency ("EPA") and California Air Resources
Conservation Board ("CARB") Low Emission Vehicle requirements.
These new engine platforms will provide AFS with exciting opportunities
as the Company enters the second half of 2001. AFS continues to provide
products and services to its existing global client base and is now focusing
on accelerating marketing efforts to reach new retrofit and OEM clients in
Australia, India, the U.S. and other parts of the world.
Alternative Fuel Systems Inc. is an environmental technology company
providing innovative solutions to the global engine exhaust emissions problem.
AFS has developed and commercialized electronic engine management technologies
that enable diesel and gasoline engines to operate using natural gas. AFS is
also at the forefront of research into exhaust aftertreatment technologies and
hydrogen-based engine systems. AFS is headquartered in Calgary, Canada and
trades on the TSE as ATF.
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For further information: Walter Brooks, Chairman and Interim CEO, Phone:
(403) 262-1833, Fax: (403) 237-7441, Email: wbrooks@afsglobal.com, Visit
our website @ www.afsglobal.com;
To request a free copy of this organization's annual report, please go to
www.newswire.ca and click on reports@cnw.
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