Knobias Clip Report (05-27-2008)
Submitted By Knobias ClipReport
QTWW: Shares Gain on Solar Modules Contract
With the Memorial Day ending, oil saw a large pullback on Tuesday with many taking profits off the table. The move caused solar names to also see large pullbacks on profit taking as well. With solar seeing a pullback, one name bucked the trend with a positive news release.
Quantum Fuel Systems Technologies Worldwide, Inc. (QTWW) is a fully integrated alternative energy company, a leader in the development and production of advanced propulsion systems, energy storage technologies, and alternative fuel vehicles. Quantum’s portfolio of technologies includes advanced lithium-ion battery systems, electronic controls, hybrid electric drive systems, hydrogen storage and metering systems and alternative fuel technologies that enable fuel efficient, low emission hybrid, plug-in hybrid electric, fuel cell, and alternative fuel vehicles.
Quantum’s powertrain engineering, system integration, vehicle manufacturing, and assembly capabilities provide fast-to- market solutions to support the production of hybrid and plug-in hybrid, hydrogen-powered hybrid, fuel cell, alternative fuel, and specialty vehicles, as well as modular, transportable hydrogen refueling stations. Quantum’s customer base includes automotive OEMs, fleets, aerospace industry, military and other government entities, and other strategic alliance partners.
On Tuesday, the Company announced that its German partner, Asola Advanced and Automotive Solar Systems, won a $17 million contract from Sunworx for the supply of high efficiency silicon photovoltaic solar modules.
Quantum and Asola have recently announced tripling of solar module production capacity in Germany, by fall 2008. Quantum holds a 25% stake in Asola, and is in discussions towards an expanded partnership. Asola and Quantum have entered into a long-term supply agreement with Ersol Solar Energy AG for the procurement of 155 MW of high-efficiency silicon photovoltaic solar cells, starting in 2008. The Ersol agreement and additional supply contracts with other leading suppliers such as MOTECH and Sunergy guarantee a steady supply of solar cells to Quantum and Asola, thereby avoiding any potential future disruptions due to silicon shortages, as have been recently experienced by the solar cell industry. Resulting sales from these supply agreements are anticipated to generate in excess of US $600 million for Asola and Quantum.
In comparison, the Company reported third quarter revenue of $7.1 million producing a net loss of $3.8 million, or $0.05 a share. Nine month results displayed revenue of $14.6 million producing a net loss of $14.3 million, or $0.19 a share.
Following the news, shares spiked at the opening bell and closed near their day high, up 16.26% on almost 8.5 million shares traded. With a huge jump in revenue expected to result from the deal and possibly positive net income, the name is certainly one to follow over the coming months. Investors would be wise to watch.
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