Quantum Fuel Systems Technologies Worldwide Inc (QTWW) is currently down over 11% today on the release of its Q1 earnings reports. The loss of 15 cents a share was greater than expected and almost double its last years quarter loss of 8 cents a share. In yesterdays earnings press release the company attributes the shortfall to lower sales and the incorporation of the recent acquisition of Tecstar Automotive.
Although we reported significant revenue growth during the first quarter due to the Tecstar acquisition, we did experience a shortfall in development program revenue. The costs of revenues, particularly on the development programs, were higher than expected and this impacted our overall operating results. The activity on hydrogen-related development programs remains strong and we are optimistic that these programs will result in increased hydrogen fuel system product sales during the second half of fiscal 2006, compared to the first half of fiscal 2006. [ more ]
The stock has been trading down for since November ’04 and it doesn’t look like this news will be helping its future prospects. I will keep my eye on this stock for future entry points, but would like to see if it can build a base and these new lows. I would also like to see some good news coming from the company in the way of new sales and contracts to help the fundamentals as well.