CALGARY, Aug. 21 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS or the Company") (TSX Venture: AFX) today reported record revenue for the three-month period ended June 30, 2008. President and CEO Jim Perry stated, "Revenue for the second quarter was $827,685 including engineering and interest income. This is the highest quarterly result the Company has recorded since the reorganization of 2004, and represents a jump of more than 61% over the revenue generated in Q2 of 2007. The company also recorded $155,542 in cash flow from operations during the quarter, a substantial improvement from the cash flow loss of $(4,226) recorded in the same period of 2007. Finally, we recorded a profit of $36,662 during the second quarter of 2008, versus a loss of $(159,919) during Q2 of 2007. We are very pleased to report such improved results, with solid growth coming from both our pressure regulators and engine management systems business lines".
Sales of the AFS "Falcon" natural gas pressure regulator have increased by 40% versus the same quarter of the previous year. Sales of engine management systems are up by more than five times compared to Q2 of 2007 as higher volume shipments to customers in India were recorded. The Company has recently received deposits for several large runs of custom engine controllers destined for Asian markets. Manufacture of the first batch of these controllers is now underway. Initial shipments to customers are expected to begin before the end of the third quarter of 2008.
The Company previously announced that it is working on three projects for Tata Motors of India. In addition, two different projects for another major Indian vehicle manufacturer have now commenced. Mr. Perry added that "we are seeing significant interest in our engine management systems from other Indian based vehicle manufacturers that will be subject to stiff new emissions requirements that take effect in 2010. Given the long development and validation cycle for such components, customers are now beginning to act. We believe that AFS is in a very good position to compete for these new opportunities, given the well publicized success of our work on the Tata "ACE" small CNG truck."
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.