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Quantum Fuel Systems Technologies Worldwide, Inc. (QTWW)
Q3 2012 Earnings Call
November 08, 2012, 04:30 pm ET
Brian Olson - CEO
Brad Timon - CFO
Bonnie Poyer - Executive Assistant
Michael Legg - Roth Capital Partners
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Mr. Olson, you may begin your conference.
Thank you. Good afternoon ladies and gentlemen. Thank you for joining us today on behalf of Quantum Technologies. We appreciate the opportunity to report the financial results of third quarter 2012. Joining me today are, Brad Timon, Chief Financial Officer and Bonnie Poyer, Executive Assistant. Before we get started, I will turn it over to Bonnie Poyer to read the Safe Harbor statement.
Certain statements made during this call may constitute forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1985. Forward-looking statements often addressed are expected future business and financial performance and often contain words such as may, could, will, should, assume, expect, anticipate, plan, intend, believe, predict, estimate, forecast, outlook, potential or continue or the negative of these terms, and other comparable terminology.
Examples of forward-looking statements made during this call include our expectations regarding future revenues, cost reduction, production capacity and the future growth of the CNG market. Various risks and other factors including those discussed in the Risk Factor sections contained in our transition report on Form 10-K filed with the SEC on March 28, 2012 and our subsequently filed quarterly reports on Form 10-Q could cause our actual results to differ materially and adversely from those contemplated by the forward-looking statements.
Forward-looking statements are based on current market conditions and management’s reasonable expectations and assumptions as of the date of this call. The company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements made during this conference call to reflect any change in management assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any forward-looking statements are based.
Thank you, Bonnie. Before jumping into the quarterly results, I want to take this opportunity to make a few opening comments. In addition to highlighting our financial results today, we will continue to emphasize our automotive focus and share the development of our strategic planning around growing this business and reaching profitability. We will talk a lot about CNG, the reason being as clearly the catalyst in our business plans.
I spoke of this last quarter and just want to make sure our stockholders are clear on our direction. CNG revenues were up during the quarter, both year-over-year and sequentially compared to the second quarter of this year. Actually, during the current quarter, we produced and sold nearly as many CNG systems as we sold in the entire prior calendar year.
For the year-to-date period ending September 30, 2012, we received new purchase orders that represent a 230% increase compared to the orders received in the same period last year. For the quarter ended September 30th, we recognized a 94% increase in tank sales compared to the prior year third quarter. It’s being driven by the underlying economics of CNG and more importantly, our ability to offer time tested and proven CNG solutions and technologies.
We have a valuable portfolio of storage and fuel system products, technologies and services and provide unique integration solutions that create value in the marketplace. We continue to go after market shares through innovation and hard work. We are selling CNG systems into a vibrant market which is marked by a growing customer base, strong end user demand and attractive CNG pricing. Most importantly, and I will discuss this after Brad covers financials, we now have a clear path for direction of this company and are able to chart our own course, chart our own destiny.
I'll now turn it over to Brad for the third quarter review.
Thanks Brian and good afternoon everyone. Before I get into the details of our third quarter results, I just wanted to take a brief moment to discuss the status of our 100% owned subsidiary, Schneider Power Inc. In August, the management team committed to a plan to sell the Schneider Power Unit and we initiated steps to locate a buyer. We anticipate that we will be able to complete the sale over the next three or four months.
Schneider Power is an operator and developer of wind farms and represents the entire operations of our renewable energy business segment. As a result, of our intent to sell the business, the historical activities and balances of the renewable energy business segment are reported as discontinued operations, held-for-sale in the financial information that we're presenting today and in our 10-Q filing that we expect to release tomorrow.
So with that let’s get to the operating results for the third quarter and the first nine months of 2012. On a consolidated basis, the company’s revenues from continuing operations amounted to $5.8 million for the third quarter of 2012 and amounted to $17.1 million over the first nine months of 2012. This represents a decline in revenues compared to the prior year amount which were $10.3 million for the third quarter and $24.1 million over the first nine months of 2011.