| Westport Innovations (halted) lowers FY14 rev guidance -- Matching investment and rev outlook with pace of mkt adoption | Co announced an update to its Westport high pressure direct injection (Westport HPDI) second generation or "HPDI 2.0" development program and identified plans to further refine investment programs to align with its original equipment manufacturer (OEM) customers and the global pace of natural gas vehicle adoption and related infrastructure build out.
- Westport is changing its revenue outlook for the year ended December 31, 2014 based on three primary factors.
- First, continued market uncertainty in Westport's primary markets-Europe, Russia and China-have impacted revenue in the Applied Technologies business in the second half of 2014.
- Second, key OEM development partners are moving to the newly co-developed Westport HPDI 2.0 injectors, which are expected to lower the cost of the system and provide benefits noted above, but the revised development schedule will defer related service revenue milestone payments in the near term. Westport will, however, be able to reduce its overall program expenses, offsetting the reduction in service revenue; and synergies across multiple customer programs are expected to allow better long-term returns.
- Third, a Westport customer who placed a significant order for Westport iCE PACK LNG Tank Systems has been unable to provide sufficient comfort to Westport that it will be able to meet its obligations and requirements in respect of such orders, and as such Westport does not intend to ship product to this customer until such comfort has been received.
- Co lowers FY14 rev to $130-140 mln from $175-185 mln vs. $174 mln consensus.
- Co does not expect its three operating business units combined to be positive Adjusted EBITDA for this year.
- Looking ahead, the co reiterates its stated goal of reporting consolidated positive Adjusted EBITDA by the end of 2015
- "Westport is developing high performance natural gas engines that will be produced on the same production lines as the most advanced diesel engines, and will set the technology standard as natural gas penetrates global markets in Asia, Europe and North America."
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