Quantum Technologies Q3 Loss Widens

Quantum Fuel Systems Technologies Worldwide Inc. (Nasdaq: QTWW) posted a wider quarterly loss and is considering closing facilities and selling/ closing unprofitable business lines.

Consolidated net revenue declined $3.0 million to $33.0 million in the third quarter of fiscal 2007 compared to $36.0 million in the third quarter of fiscal 2006. The decrease in consolidated net revenue is the result of a $1.5 million decrease in revenues within the Tecstar Automotive Group’s segment and a $1.4 million decrease within the Quantum Fuel System segment.

Operating loss increased from $9.7 million in the third quarter of fiscal 2006 to $14.5 million in the third quarter of fiscal 2007.

Alan Niedzwiecki, President and CEO, stated, “The Company’s operating performance during fiscal 2007 has been disappointing and is a result of underutilization of our Tecstar facilities and an overall downturn in large specialty vehicle sales. We continue to evaluate the Company’s cost structure and are considering the closure of facilities and selling off or closing unprofitable business lines. We expect the impact of our downsizing to begin materializing in the fourth quarter with the full impact occurring in the first quarter of fiscal 2008.”

“On the business development side, Tecstar Automotive is beginning to see several opportunities slated to enter production in the next several months. Quantum Fuel Systems has made recent announcements regarding new programs with the military, aerospace companies and automotive OEMs for hydrogen storage, hydrogen injection systems, hybrid programs, and other advanced fuel system technologies. We are especially excited about opportunities opening up in China and Europe. We are currently in discussions with numerous China-based automotive OEMs and other parties in Europe to customize our existing components and systems to meet specific vehicle requirements for those markets, including natural gas and hydrogen applications. We anticipate recognizing meaningful revenue streams from these opportunities in fiscal 2008.”