CALGARY, Nov. 24 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS or the Company") (TSX Venture: AFX) today reported record revenue for the three-month period ended September 30, 2008. President and CEO Jim Perry stated, "We are very pleased to report that revenue for the third quarter was $1,250,994, including engineering and interest income. This amount is the highest quarterly revenue the Company has recorded since the reorganization of 2004, and is more than three times the revenue generated in Q3 of 2007. The company also recorded $366,194 in cash flow from operations during the quarter, a substantial improvement from the cash flow loss of ($187,021) recorded in the same period of 2007. Finally, we recorded a profit of $277,266 during the third quarter of 2008, versus a loss of ($127,896) during Q3 of 2007. These excellent quarterly results have lifted our profit year-to-date up to $294,047 or $.02 per share, which is a dramatic improvement over the loss of ($413,376) recorded in the first nine months of 2007. Year to date total revenue was also a record at $2,663,459 compared to total revenue of $1,345,053 for the nine month period ended September 30, 2007."
Sales of the AFS "Falcon" natural gas pressure regulator have increased by 240% versus the same quarter of the previous year as a result of the Company's main European customer ramping up production of natural gas fuelled vehicles. Sales of engine management systems are up by more than six times compared to Q3 of 2007 as higher volume shipments to customers in India were recorded. In addition, as reported in the Q2 results press release, a major customer in the USA that sells engine management systems in Southeast Asia has placed large orders, deliveries of which commenced in the third quarter of 2008.
Mr. Perry added "we have made good progress on all three of our projects with Tata Motors of India. Based on this success, we are seeing significant interest in our engine management systems from other Indian based vehicle manufacturers. Although the development time for such projects is generally long, we are now in discussions with potential new customers. Most of their projects will involve demonstration work ahead of consideration for production orders. We have commenced initial work on one opportunity, and anticipate that others may follow. Although there is no guarantee that the vehicles involved will move into full scale production, we believe that there are good prospects for additional engine controller sales in Asian markets."
"We are seeing signs that the global financial turmoil is causing softened demand for CNG related vehicle products in markets such as Thailand and the United States. However, demand from Europe and India, our major markets, remains strong. It is not possible to determine if that strength will be sustained, but we will continue to carefully monitor the market."
Forward-looking statements
Certain statements in this news release including (i) statements that may contain words such as "anticipate", "could", "expect", "seek", "may" "intend", "will", "believe", "should", "project", "forecast", "plan" and similar expressions, including the negatives thereof, (ii) statements that are based on current expectations and estimates about the markets in which the Company operates and (iii) statements of belief, intentions and expectations about developments, results and events that will or may occur in the future, constitute "forward-looking statements" and are based on certain assumptions and analysis made by the Company. Forward-looking statements in this news release include, but are not limited to, statements with respect to future business opportunities, nature and timing thereof; business strategy; expansion and growth of the Company's business and operations and other such matters. Such forward-looking statements are subject to important risks and uncertainties, which are difficult to predict and that may affect the Company's operations, including, but not limited to: the impact of general economic conditions; industry conditions; customer base changes; financial market conditions; government and regulatory developments; oil and natural gas product supply, demand and pricing; foreign exchange rates; competition; and the Company's ability to attract and retain qualified personnel. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do transpire or occur, what benefits or disadvantage the Company may derive therefrom. Subject to applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in the Company's current financial statements and associated documents, which are available on www.sedar.com.