Company announces first quarter financial and operating results
CALGARY, May 28 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS or the Company") (TSX Venture: AFX) announced today financial and operating results for the first quarter ended March 31, 2008. President and CEO Jim Perry stated "Sales for the quarter were up by about 42% compared to the same period last year. Production at our largest natural gas pressure regulator customer in Europe has resumed, so that revenue from that product line has picked up substantially".
Mr. Perry added that "We also reached an important milestone in the first quarter, as we began shipments of engine controllers to TATA Motors of India for their ACE natural gas powered mini-truck program. These shipments mark the first time that we have participated in providing such products to a major vehicle manufacturer for volume production. It has taken a lot of time, effort and resources over the last two years to accomplish this objective. We are excited about the future prospects for work in India, and we look forward to ramping up production to address the needs of our various customers in that region".
For the three-month period ended March 31, 2008, the Company recognized total revenue of $584,780 including engineering income and interest on cash balances. In the same period of the prior year, total revenue of $425,498 was recorded. In the first quarter of 2008, a net loss of ($19,881) was incurred, compared to a loss of ($125,561) in the three months ended March 31, 2007. Mr. Perry said that "The significant reduction in loss this quarter versus the same period last year is a very positive sign. Many of our costs, such as labour, are fairly constant. With the increase in sales that we saw during the quarter, we came much closer to achieving break-even."
AFS (2004) is a Canadian company providing innovative and cost-effective solutions to the growing global problem of harmful exhaust emissions from internal combustion engines. AFS (2004) has commercialized electronic engine management systems enabling diesel and gasoline engines to operate on cleaner burning natural gas and other alternative fuels. The Company is headquartered in Calgary, Canada and trades on the TSX Venture Exchange under the trading symbol AFX.
Forward-looking statements
Certain statements in this document 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 there from. 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.