Business
AFS (2004) provides business update
CALGARY, Jan. 22 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS" or the "Company") (TSX Ventu...
About this update from Arctic Fox Lithium Corp
[{"type":"text","content":"\n\n\n\nCALGARY, Jan. 22 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS" or\nthe "Company") (TSX Venture: AFX) announced today that it has been informed by\nits European representative that the major vehicle manufacturer (the "OEM")\nthat has been purchasing the bulk of the Company's natural gas pressure\nregulators plans to discontinue the production of the vehicle that uses those\nproducts. The production halt is expected to occur within a few weeks. As a\nresult, a significant portion of the Company's revenue stream will be\naffected. In the third quarter of 2008, pressure regulator sales through AFS's\nEuropean representative amounted to about one-half of the Company's revenue.\nThe majority of that revenue was generated from sales to the OEM. The revenue\nsplit between sales to the OEM and other sales by AFS in the fourth quarter\nended December 31, 2008 was similar to that reported for Q3.\n\n\nIt is expected that this production halt will only have a small affect on\nthe Company's revenues in the first quarter of 2009 (the period ending March\n31, 2009). However, its effects later in the year will probably be material.\n\n\nAs of December 31, 2008 AFS had term deposits of approximately $1.2\nmillion, and no debt. This strong financial position will be an advantage as\nefforts are made to replace the OEM revenue with sales from other sources.\nGrowth of the Company's electronic engine control business has been rapid,\nwith an increase of 562% previously reported for the third quarter of 2008.\nManagement expects to intensify efforts to grow this portion of the business\nas quickly as possible, although with the current economic climate, there is\nno guarantee that such efforts will be successful.\n\n\nForward-looking statements\n\n\nCertain statements in this news release including (i) statements that may\ncontain words such as "anticipate", "could", "expect", "seek", "may" "intend",\n"will", "believe", "should", "project", "forecast", "plan" and similar\nexpressions, including the negatives thereof, (ii) statements that are based\non current expectations and estimates about the markets in which the Company\noperates and (iii) statements of belief, intentions and expectat...