Quantum Fuel Systems (QTWW) reported earnings results after the bell yesterday, beating Wall ST estimates on both the EPS and revenue side with a loss of .03/share on revenues of $6.2 million. Analysts had expected a .07/share loss. Revenues slipped 35% over the year ago quarter which the company attributed to the end of a supply contract with GM for hydrogen fuel storage systems. However, the company continues to trim its losses as cost reduction measures take hold.
Just about all of the revenue for the company last quarter ($6.1 million) was related to its development of the Q-Drive propulsion system for Fisker Automotive. Now that’s what I call a high risk stock. Of course, if Fisker does well, then QTWW will take off like a rocket. Risk will certainly be rewarded in this case.
Some highlights from CEO Alan Niedzwiecki..
– GM struggled hurt results last year with write downs, cancellations and delayed projects
– excited by opportunities with Fisker, Volvo, Ford, DOE and military
“We remain excited about the transformation taking place in the automotive industry with clean vehicle hybrid technology taking center stage. Quantum has been working on advanced propulsion and hybrid vehicle technologies for the past ten years and we now see opportunities to apply this proprietary technology into widely adopted commercial and military vehicle markets.”