Business
AFS (2004) announces record cash flow and profit in Q3 2006 financial and operating results
AFS (2004) announces record cash flow and profit in Q3 2006 financial and operating results.
About this update from Arctic Fox Lithium Corp
[{"type":"text","content":"\n\n\n\n\nCALGARY, Nov. 23 /CNW/ - Alternative Fuel Systems (2004) Inc. (\"AFS\n(2004)\" or the \"Company\") (TSX Venture: AFX) announced today financial and\noperating results for the third quarter ended September 30, 2006. \"In the\nthird quarter, we posted strong cash flow and we recorded the largest profit\nsince we reorganized the Company in 2004,\" said AFS President and CEO Jim\nPerry. \"As a result, our cash position was almost 9 cents per share at the end\nof the quarter, despite our increasing inventory to address order levels.\"\nMr. Perry also commented that, \"Pressure regulator revenue is up 168%\nfrom the comparative quarter in 2005, with continued strength in sales to our\nmajor customer in Europe. Although these sales will slow down in Q4 due to\nholidays and production issues, they are forecast to return to the same level\nof production as we saw in Q3, effective early in January. In the meantime, we\nare seeing continued growth in our sales of engine management electronics to\ncustomers in both the USA and Southeast Asia. In addition, in the past few\nmonths we have managed to dramatically increase the flow of parts required for\nregulator and electronic sales.\"\nFor the three-month period ended September 30, 2006, the Company\nrecognized revenue of $762,000 from sales to clients primarily in Europe, the\nU.S. and Asia, up 66% from the same period in 2005. AFS (2004) recorded a net\nincome of $74,000 during the quarter, compared to a net loss of $27,000 in the\nsame quarter in 2005, when revenue was $530,000. Mr. Perry stated that \"We\nhave a number of projects in Southeast Asia and the Middle East that continue\nto show promise, and although there is no guarantee that these opportunities\nwill become hard contracts, they certainly have excellent potential.\"\n\nManagement's Discussion and Analysis (\"MD&A\")\n\nBelow is Management's discussion and analysis of financial results for\nthe three and nine-month periods ended September 30, 2006 and September 30,\n2005.\n\nOperating Results\n\nSales Revenue\nSales for the third quarter were comprised of the following (amounts in\nthousands of Canadian dollars):\n\n>\n\nThe substantial growth in pressure regulator sales was due to increased\ndemand from the Company's major European customer, who is providing AFS\nproducts for use in high-end taxis and commercia...