![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Questair Tech | LSE:QAR | London | Ordinary Share | CA74836V2057 | COM SHS NPV (CDI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 15.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
FOR: QUESTAIR TECHNOLOGIES INC. TSX, AIM SYMBOL: QAR August 2, 2007 QuestAir Reports Third Quarter 2007 Results BURNABY, BRITISH COLUMBIA--(CCNMatthews - Aug. 2, 2007) - QuestAir Technologies Inc. ("QuestAir" or "the Company") (TSX:QAR)(AIM:QAR) reported today its unaudited financial and operational results for the third quarter of fiscal 2007, ended June 30, 2007. All amounts are in Canadian dollars unless otherwise noted. Third Quarter Highlights - QuestAir shipped the prototype H-6200 hydrogen purifier ("prototype plant") to an ExxonMobil refinery in France. The prototype plant will be installed and tested at this demonstration site in order to generate additional data to assist with marketing of this product to other refineries. - The Company completed a reorganization of its operations during the third quarter to focus resources on commercial activities and reduce research and development expenses. - QuestAir received an order for a large-scale methane purification system, valued at US$2.85 million, which will upgrade anaerobic digester gas created from organic waste to pipeline quality methane. - Revenue was $3,616,088 for the quarter, increased by $2,422,708, or 203% compared to the same period in fiscal 2006. Revenue for the nine months was $6,132,310, increased by $1,270,813, or 26% from the same period last year. - Sales order backlog at June 30, 2007 was $7,135,799, decreased by $377,027, or 5%, from March 31, 2007. - Cash used by operations and capital requirements was $2,263,565 for the quarter, increased by $387,414, or 21% compared to the same period in fiscal 2006. Cash used by operations and capital requirements for the nine months was $7,577,816, compared to $5,922,222 for the same period in fiscal 2006. At June 30, 2007, the Company had $12,207,557 in cash and short term investments, including restricted cash of $685,308. - Net loss was $2,238,859 ($0.04 per share) for the quarter, increased by $104,045 or 5% compared to the same period in fiscal 2006. Net loss for the nine months increased to $8,780,381 ($0.17 per share) from $7,538,338 ($0.19 per share) for the same period in 2006. Jonathan Wilkinson, President and CEO of QuestAir, said: "We are seeing continued growth in new gas purification equipment orders, with year to date equipment orders exceeding $7.3 million. Much of this growth is due to increased traction in the biomethane purification market. Orders for our M-3200 and M-3100 products for use in biomethane applications have accounted for nearly half of the total value of equipment orders in the first nine months of this fiscal year. Our gas purification products are well positioned to meet the emerging demand for scalable systems that can upgrade renewable sources of biomethane to pipeline grade." Outlook Commenting on the outlook for the remainder of fiscal 2007, Wilkinson said: "We are focused on three key priorities for the remainder of the fiscal year: the successful start up and operation of the prototype plant at ExxonMobil's refinery in France; continued growth in the sales of our commercial gas purification products; and ramping up our order-to-delivery capacity to ensure that we continue to deliver our commercial products on time and on budget." "During the third quarter of fiscal 2007, we shipped the prototype plant to an ExxonMobil refinery in France. The prototype plant is now being installed at the refinery, and we expect to start up the plant in September. In cooperation with refinery staff, we will conduct a series of tests on the unit over the next several months, to demonstrate a number of operating conditions which may be encountered at other refineries. Following completion of the test plan, the prototype plant will continue in regular operations at the refinery site." "Our sales of our commercial products have exceeded our expectations this year, due to the rapid growth in the biomethane market. Going forward, we expect to see continued growth in this market, driven by higher natural gas prices and by social and political pressure to generate more energy from renewable sources." "The rapid growth in commercial orders means that we need to expand our manufacturing capacity. We are investing in additional engineering resources, and expanding our supply chain in order to meet the growing demand for our products," Wilkinson added. Based on financial results for the first nine months of the year, the current status of the Company's sales order backlog and the expected timing of cash receipts and disbursements, management expects that recognized revenue for fiscal 2007 will be within the range of $7 to $8 million, and that cash used in operations and capital requirements for the full fiscal year will be between $10 and $12 million. Q3 2007 Financial Results Operating Results The following table provides a breakdown of QuestAir's revenues from the sale of gas purification systems and engineering service contracts for the reported periods: /T/ -------------------------------------------------------------------------- Three months ended Nine months ended June 30, June 30, (Unaudited) 2007 2006 2007 2006 -------------------------------------------------------------------------- Gas purification systems 3,333,135 573,898 5,613,688 3,277,939 Engineering service contracts 282,953 619,482 518,622 1,583,558 -------------------------------------------------------------------------- Total revenue 3,616,088 1,193,380 6,132,310 4,861,497 -------------------------------------------------------------------------- /T/ Revenue from the sale of gas purification systems represents a more substantial portion of total revenues than in prior periods, reflecting a change in the nature of the Company's sales order backlog. During the nine months ended June 30, 2007, revenue from the sale of gas purification systems accounted for 92% of total revenue, up from 67% of total revenue during the same period in fiscal 2006. The increase in revenue from gas purification systems for the quarter and nine months ended June 30, 2007 resulted primarily from revenue being recognized from the sale of a US$2 million M-3100 system to recover pipeline grade methane from landfill gas at the Rumpke Sanitary Landfill in Cincinnati, Ohio. Fluctuations in recognized revenue and the receipt of new sales orders are to be expected in the industrial markets that QuestAir currently serves. Accordingly, recognized revenue and changes in sales order backlog should be monitored together to determine the strength of commercial operations. QuestAir's sales order backlog is defined as future revenue from signed contracts that have not yet been recognized as revenue. The following table provides an analysis of the changes in sales order backlog for the quarter and nine months ended June 30, 2007. /T/ ------------------------------------------------------------- For the three months ended June 30, 2007 Gas Engineering Purification Service (Unaudited) Systems Contracts Total ------------------------------------------------------------- Opening Balance 7,078,336 434,491 7,512,827 Bookings 3,254,422 363,000 3,617,422 Revenue (3,333,135) (282,953) (3,616,088) Adjustments(1) (339,539) (38,823) (378,362) ------------------------------------------------------------- Ending Balance 6,660,084 475,715 7,135,799 ------------------------------------------------------------- ------------------------------------------------------------- For the nine months ended June 30, 2007 Gas Engineering Purification Service (Unaudited) Systems Contracts Total ------------------------------------------------------------- Opening Balance 4,908,298 135,594 5,043,892 Bookings 7,350,387 901,275 8,251,662 Revenue (5,613,688) (518,622) (6,132,310) Adjustments(1) 15,087 (42,532) (27,445) ------------------------------------------------------------- Ending Balance 6,660,084 475,715 7,135,799 ------------------------------------------------------------- (1) Includes adjustments for fluctuations in foreign currency exchange rates. /T/ The total sales order backlog decreased by $377,028, or 5%, during the third quarter of fiscal 2007, driven by fluctuations in foreign currency exchange rates. During the quarter, QuestAir received an order for an M-3100 system to upgrade anaerobic digester gas created from organic waste to pipeline quality methane, making a significant contribution to maintaining backlog levels after the recognition of $3,616,088 in revenue during the quarter. Also during the quarter, QuestAir received a small follow-on engineering services contract related to the refinery development program with ExxonMobil Research and Engineering ("EMRE"). The table below provides a calculation of gross profit for the reported periods: /T/ -------------------------------------------------------------------------- Three months ended Nine months ended June 30, June 30, (Unaudited) 2007 2006 2007 2006 -------------------------------------------------------------------------- Sales 3,616,088 1,193,380 6,132,310 4,861,497 Cost of goods sold 2,381,958 714,014 5,972,116 3,823,872 -------------------------------------------------------------------------- Gross Profit 1,234,130 479,366 160,194 1,037,625 Gross Margin (%) 34.1% 40.2% 2.6% 21.3% -------------------------------------------------------------------------- /T/ The decrease in gross margin for the quarter ended June 30, 2007 compared to the same period in fiscal 2006 resulted from a change in the mix of revenues recognized during the quarter. In the most recent quarter 8% of revenue was from engineering service contracts compared to 52% in the prior period. Engineering service contracts typically contribute higher gross margins. The decrease in gross margin for the nine months ended June 30, 2007 resulted from the recognition of an estimated loss on the prototype plant being recognized in the second quarter. Sales and marketing expenses were $587,651 for the quarter ended June 30, 2007, increased by 20% compared to $489,328 for the same period in fiscal 2006. Sales activities increased in the quarter compared to the prior period, resulting in an overall increase in commissions and other sales and marketing expenses. For the nine months ended June 30, 2007, sales and marketing expenses were $1,615,703, increased by 10% compared to $1,472,316 for the same period in 2006. This increase is also attributed to an increased level of sales activities compared to the prior period. The gross Research and Development ("R&D") expenditures, offsetting government funding and the resulting net R&D expenditures for the relevant periods, were as follows: /T/ -------------------------------------------------------------------------- Three months ended Nine months ended June 30, June 30, (Unaudited) 2007 2006 2007 2006 -------------------------------------------------------------------------- Gross R&D Expenditure 1,561,165 1,640,794 4,717,091 5,133,296 Less: Government & Partner Funding (320,345) (404,481) (1,032,571) (1,370,758) -------------------------------------------------------------------------- Net R&D Expenditure 1,240,820 1,236,313 3,684,520 3,762,538 -------------------------------------------------------------------------- /T/ The 5% and 8% reduction in gross R&D expenditures for the quarter and nine months ended June 30, 2007 compared to the same periods in fiscal 2006 was due to a reduction in the amount of R&D undertaken, as resources were redirected towards supporting commercial sales efforts and the construction of the prototype plant. Government funding decreased for the quarter and nine months in proportion to the reduction in R&D undertaken on the refinery development program with EMRE, which is eligible for funding from Technology Partnerships Canada. General and Administrative ("G&A") expenses were $1,324,820 for the third quarter of fiscal 2007, increased by 71% from $775,809 for the same period in fiscal 2006. For the nine months ended June 30, 2007, G&A expenses were $3,151,230, increased by 27% from $2,475,989 for the same period in 2006. The increase in G&A expenses the quarter and nine months ended June 30, 2007 resulted primarily from severance costs and termination benefits of $560,808 being recognized related to the restructuring of the Company's operations in the third quarter. Amortization expenses were $209,647 for the quarter ended June 30, 2007 compared to $187,360 for the same period in fiscal 2006. The increase relates to the addition of a three-year capital lease for modeling software during the current quarter. For the nine months ended June 30, 2007 amortization was $641,459 compared to $951,218 for the same period in fiscal 2006. The decrease in amortization expenses was a result of certain capital assets becoming fully amortized during the current and prior fiscal years. Other income and expenses netted to an expense of $110,051 for the quarter ended June 30, 2007 compared to income of $74,630 for the same period in fiscal 2006. Losses from foreign exchange fluctuations and unrealized losses on embedded derivatives were only partially offset by interest income in the quarter ended June 30, 2007. For the nine months ended June 30, 2007 other income was $152,337 compared to $86,098 for the same period in fiscal 2006. The increase in other income for the first nine months of fiscal 2007 resulted from higher interest income earned during the period, which was partially offset by losses from foreign exchange fluctuations and unrealized losses on embedded derivatives. Net loss for the quarter ended June 30, 2007 was $2,238,859 ($0.04 per share) compared to $2,134,814 ($0.05 per share) for the same period in fiscal 2006. Net loss for the nine months ended June 30, 2007 was $8,780,381 ($0.17 per share) compared to $7,538,338 ($0.19 per share) for the same period in fiscal 2006. The 16% increase in the net loss for the nine months was primarily a result of reduced gross profits compared to the prior period, as well as higher G&A expenses associated with the restructuring of the Company's operations in the third quarter. Loss per share is calculated based on the weighted average number of common shares outstanding through the quarter. The reduction in the loss per share for the quarter and nine months ended June 30, 2007 was a result of an increase in the weighted average number of common shares outstanding compared to the prior period. Capital expenditures net of government funding and proceeds on sale ("Net CAPEX") for the third quarter of fiscal 2007 was $30,954, compared to $353,454 for the same period in fiscal 2006. Net CAPEX for the nine months ended June 30, 2007 was $381,008, compared to $750,971 for the same period in 2006. It is expected that capital expenditures will fluctuate from quarter to quarter depending on the requirements of specific product development programs and administrative needs. Liquidity and Capital Resources Cash and short-term investments were $11,522,249 at June 30, 2007, compared to $13,124,503 at March 31, 2007. Not included in cash and short-term investments at June 30, 2007 was $685,308 of restricted cash, which secures customer deposits pending completion of certain customer orders. Cash used by operations and capital requirements for the third quarter of fiscal 2007 was $2,263,565, compared to $1,876,151 for the same period in fiscal 2006. The increase in cash used by operations and capital requirements during the quarter was driven by significant changes in non-cash working capital accounts. Deferred revenue decreased $1,049,259 as revenue recognized in the quarter exceeded new customer deposits on work in progress. The recognition of revenue in the quarter also lowered inventory by $797,026, as the reallocation to costs of sales from work in progress more than offset inventory purchases during the quarter. Cash used by operations and capital requirements for the nine months ended June 30, 2007 was $7,577,816, compared to $5,922,222 for the same period in fiscal 2006. Higher operating losses and decreases in accounts payable and accrued liabilities were partially offset by increases in deferred revenue compared to the prior period. During fiscal 2005, the Company signed a credit facilities agreement with Comerica Bank. This agreement is amended and restated each year as part of the annual renewal of these facilities, most recently in June 2007. The amended credit facilities include a US$1 million accounts receivable line of credit and a US$1 million term loan, in addition to $1,069,762 outstanding under the prior term loan agreements. Both facilities are secured by the assets of the Company with certain exceptions. As at June 30, 2007, the Company had drawn $1,054,511 against the term loans net of repayments, and is in compliance with all of its bank covenants. On June 6, 2003, QuestAir was awarded a $9,600,000 conditionally repayable loan from TPC, a funding program administered by Industry Canada. At June 30, 2007, the Company had claimed $8,814,405 against this loan. Based on forecasted R&D expenditures, the Company expects to draw approximately one half the remaining $785,595 of TPC funding by the end of fiscal 2007. QuestAir's authorized share capital consists of an unlimited number of common shares, of which 52,530,494 common shares were issued and outstanding as of June 30, 2007, increased by 26,574 or 0.05% from March 31, 2007. The Company also has an unlimited number of preferred shares authorized, none of which are issued. In addition, there were 4,752,838 stock options and 192,308 share purchase warrants outstanding at June 30, 2007. Further information on the Company's financial results for the quarter can be found at www.sedar.com. /T/ Balance Sheets -------------- -------------------------------------------------------------------------- As at As at June 30, September 30, Unaudited (expressed in Canadian dollars) 2007 2006 ASSETS Current assets: Cash and cash equivalents $11,461,803 $11,018,800 Restricted cash 685,308 1,256,354 Short-term investments 60,446 7,400,000 Accounts receivable 1,677,485 1,476,024 Grants and funding receivables 673,958 454,597 Inventories 3,086,177 3,510,508 Prepaid expenses 261,768 337,335 -------------------------- 17,906,945 25,453,618 Property, plant and equipment 1,887,156 2,103,626 Other long-term assets 169,760 125,000 -------------------------- $19,963,861 $27,682,244 -------------------------- -------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 3,471,960 $ 4,413,717 Deferred revenue 3,086,527 1,946,781 Current portion of bank debt 564,306 351,398 Current portion of capital lease obligation 104,764 - Derivatives 90,747 - -------------------------- 7,318,304 6,711,896 Long term liabilities: Bank debt 490,205 532,852 Capital lease obligation 104,765 - -------------------------- 7,913,274 7,244,748 -------------------------- Shareholders' equity: Share capital Authorized Unlimited common shares, voting, no par value Unlimited preferred shares, issuable in series, no par value Common shares 109,359,654 109,020,202 Contributed surplus 6,541,639 6,462,772 Deficit (103,850,706) (95,045,478) -------------------------- 12,050,587 20,437,496 -------------------------- $19,963,861 $27,682,244 -------------------------- -------------------------- -------------------------------------------------------------------------- Statements of Operations, Comprehensive Loss and Deficit -------------------------------------------------------- -------------------------------------------------------------------------- For the For the Unaudited three months ended nine months ended (expressed in June 30, June 30, June 30, June 30, Canadian dollars) 2007 2006 2007 2006 Revenues $ 3,616,088 $ 1,193,380 $ 6,132,310 $ 4,861,497 Cost of goods sold 2,381,958 714,014 5,972,116 3,823,872 --------------------------------------------------------- Gross Profit 1,234,130 479,366 160,194 1,037,625 --------------------------------------------------------- Operating expenses Research and development - net 1,240,820 1,236,313 3,684,520 3,762,538 General and administration 1,324,820 775,809 3,151,230 2,475,989 Sales and marketing 587,651 489,328 1,615,703 1,472,316 Amortization 209,647 187,360 641,459 951,218 --------------------------------------------------------- 3,362,938 2,688,810 9,092,912 8,662,061 --------------------------------------------------------- Loss before undernoted (2,128,808) (2,209,444) (8,932,718) (7,624,436) --------------------------------------------------------- Other income (expense) Interest income 118,833 90,316 414,965 179,779 Other (228,884) (15,686) (262,628) (93,681) --------------------------------------------------------- (110,051) 74,630 152,337 86,098 --------------------------------------------------------- Loss for the period (2,238,859) (2,134,814) (8,780,381) (7,538,338) Other comprehensive income - - - - --------------------------------------------------------- Comprehensive loss for the period (2,238,859) (2,134,814) (8,780,381) (7,538,338) Deficit - Beginning of period (101,611,847) (90,186,084) (95,045,478) (84,782,560) Unrealized foreign exchange loss on derivatives - - (24,847) - --------------------------------------------------------- Deficit - End of period $(103,850,706) $(92,320,898) $(103,850,706) $(92,320,898) --------------------------------------------------------- Basic and diluted loss per share $ (0.04) $ (0.05) $ (0.17) $ (0.19) Weighted average number of common shares outstanding 52,519,392 42,498,492 52,451,434 39,091,486 -------------------------------------------------------------------------- Statements of Cash Flows ------------------------ -------------------------------------------------------------------------- For the For the Unaudited three months ended nine months ended (expressed in June 30, June 30, June 30, June 30, Canadian dollars) 2007 2006 2007 2006 Cash flows from operating activities Loss for the period $ (2,238,859) $ (2,134,814) $ (8,780,381) $ (7,538,338) Items not involving cash Amortization 209,647 187,360 641,459 951,218 Gain on sale of property, plant and equipment (2,214) (350) (2,564) (8,424) Unrealized foreign exchange loss on Derivatives 56,059 - 65,899 - Non-cash compensation expense 104,986 127,101 350,434 373,591 Foreign currency loss (gain) (18,605) - (18,605) 503 --------------------------------------------------------- (1,888,986) (1,820,703) (7,743,758) (6,221,450) --------------------------------------------------------- Changes in non-cash operating working capital Accounts, grants and funding Receivables (276,679) 976,076 (420,822) 463,330 Inventories 797,027 (584,676) 424,331 (197,881) Prepaid expenses 127,697 (178,503) 30,806 (215,202) Accounts payable and accrued liabilities 57,588 635,126 (627,112) 1,146,080 Deferred revenue (1,049,258) (550,017) 1,139,746 (146,128) --------------------------------------------------------- (343,625) 298,006 546,949 1,050,199 --------------------------------------------------------- (2,232,611) (1,522,697) (7,196,809) (5,171,251) --------------------------------------------------------- Cash flows from investing activities Decrease (increase) in short-term investments 4,939,554 (7,400,000) 7,339,554 (7,400,000) Purchase of property, plant and equipment (48,539) (383,773) (414,806) (841,442) Government grants and funding related to property, plant and equipment 5,888 29,969 21,751 86,621 Proceeds on sale or property, plant and equipment 11,697 350 12,048 3,850 Decrease (increase) in restricted cash 678,639 - 571,046 (1,112,731) --------------------------------------------------------- 5,587,239 (7,753,454) 7,529,593 (9,263,702) --------------------------------------------------------- Cash flows from financing activities Issuance of common shares - 20,000,250 - 20,000,250 Share issue costs - (1,497,328) - (1,497,328) Issuance of common shares on exercise of stock options 9,097 5,064 67,885 84,486 Issuance of bank debt 214,254 153,446 462,759 153,446 Repayment of bank debt (112,749) (58,472) (292,495) (130,752) Repayment of obligations under capital lease (127,930) (110,860) (127,930) (110,860) --------------------------------------------------------- (17,328) 18,492,100 110,219 18,499,242 --------------------------------------------------------- Increase in cash and equivalents 3,337,300 9,215,949 443,003 4,064,289 Cash and equivalents - Beginning of period 8,124,503 5,262,559 11,018,800 10,414,219 --------------------------------------------------------- Cash and equivalents - End of period $ 11,461,803 $ 14,478,508 $ 11,461,803 $ 14,478,508 -------------------------------------------------------------------------- /T/ About QuestAir Technologies Inc. QuestAir Technologies, Inc. is a developer and supplier of proprietary gas purification systems for several large international markets, including existing markets such as oil refining, biogas production and natural gas processing, and emerging markets such as fuel cell power plants and fuel cell vehicle refueling stations. QuestAir is based in Burnaby, British Columbia and its shares trade on the AIM Market of the London Stock Exchange Plc. and on the Toronto Stock Exchange under the symbol "QAR". Forward-looking statements Certain statements in this press release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "will" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. -30- FOR FURTHER INFORMATION PLEASE CONTACT: QuestAir Technologies Inc. Sherry Tryssenaar Chief Financial Officer (604) 454-1134 (604) 454-1137 (FAX) Email: tryssenaar@questairinc.com Website: www.questairinc.com OR Buchanan Communications Charles Ryland UK Media Contact +44 (0) 20 7466 5000 OR Buchanan Communications Ben Willey UK Media Contact +44 (0) 20 7466 5000 OR Karyo Edelman Stephen Burega Canadian Media Contact (604) 623-3007 OR Canaccord Adams Mark Ashurst +44 207 050 6500 OR Canaccord Adams Erin Needra +44 207 050 6500 -0- QuestAir Technologies Inc.
1 Year Questair Tech Chart |
1 Month Questair Tech Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions