IRVINE, Calif., May 10, 2012 /PRNewswire/ -- Quantum Fuel Systems Technologies Worldwide, Inc. (Nasdaq: QTWW), a leader in the development and production of hybrid propulsion systems, energy storage technologies, alternative fuel vehicles and applications including natural gas,  plug-in hybrid, electric hybrid and hydrogen and owner of a portfolio of renewable energy farm projects, today reported its results for the first quarter of calendar 2012.  Conference call information is provided below.

Calendar 2012 First Quarter Operating Results

For the first quarter of calendar 2012, revenues decreased $0.8 million from $6.8 million in the first quarter of calendar 2011 to $6.0 million in the first quarter of calendar 2012.  The decrease in revenues is primarily due to lower contract revenues, partially offset by increased natural gas vehicle product sales and component shipments to Fisker Automotive.  Our overall operating loss for the first quarter decreased $0.1 million, from $4.4 million in the first quarter of calendar 2011 to $4.3 million in the first quarter of calendar 2012. 

Product revenue for our Electric Drive & Fuel Systems segment increased 133%, or $2.0 million, from $1.5 million in the first quarter of calendar 2011 to $3.5 million in the first quarter of calendar 2012, due to product shipments to Fisker Automotive of components related to our Q-Drive ^® hybrid drive system and increased shipments of high pressure fuel storage systems for natural gas applications.  Contract revenue for this segment decreased $2.7 million, or 53%, from $5.1 million in the first quarter of calendar 2011 to $2.4 million in the first quarter of calendar 2012.  Contract revenue is derived primarily from system development, application engineering and qualification testing of our products and systems under funded contracts with automotive OEMs and other customers.  The decrease in contract revenues in the first quarter of calendar 2012 was primarily attributable to pre-production development efforts for Fisker Automotive during the first quarter of calendar 2011.  Total revenue for this segment decreased $0.7 million, from $6.6 million in the first quarter of calendar 2011 to $5.9 million in the first quarter of calendar 2012.  This segment had an operating loss of $1.2 million in the first quarter of calendar 2012, compared to $0.4 million in the first quarter of calendar 2011.  

Revenues for our Renewable Energy segment includes energy sales related to Schneider Power's Providence Bay wind farm and revenue from construction management services on other projects.  Revenues for this segment were $0.1 million for both the first quarter of calendar 2011 and 2012.   The operating loss for this segment was $0.3 million in the first quarter of calendar 2012, compared to a loss of $1.6 million in the first quarter of calendar 2011.  The operating loss for the prior year's first quarter included a $1.0 million impairment charge due to the abandonment of the Spring Bay wind farm construction project in January 2011.  Schneider Power will begin recognizing revenues from the newly acquired 10 megawatt Zephyr Wind Farm in the second quarter of calendar 2012.

Our Corporate segment represents the general and administrative expenses that indirectly support our Electric Drive and Fuel Systems and Renewable Energy operating segments and consists primarily of personnel costs, share-based compensation costs, and general and administrative costs for executives, finance, legal, human resources, investor relations and the board of directors.   Corporate segment losses increased $0.4 million, from $2.4 million in the first quarter of calendar 2011 to $2.8 million in the first quarter of calendar 2012.  Company-wide share-based compensation expense was $0.2 million and depreciation and amortization expense was $0.3 million in the first quarter of calendar 2012.  

During the first quarter of calendar 2012, we recognized a $0.1 million loss in equity in earnings of affiliates, primarily related to our equity share in losses of Asola, our German affiliate.

Interest expense, net of interest income, amounted to $3.4 million in the first quarter of calendar 2012, as compared to $0.9 million recognized in the first quarter of calendar 2011.  The increase in expense during the current period is primarily related to the amortization of the debt discount associated with the repayment of $4.0 million of convertible notes that matured in March 2012.   The amortization of the debt discounts, which represent non-cash interest charges, was $3.0 million during the first quarter of calendar 2012.  Interest expense in the prior year period primarily related to debt instruments held by our former senior lender.

Our financial statements include fair value adjustments for the bifurcation of the derivative liabilities associated with embedded features contained within certain debt obligations and warrant contracts.  Fair value adjustments of the derivative instruments, which are recorded as non-cash unrealized gains or losses, amounted to a $0.1 million gain in the first quarter of calendar 2012, compared to a $3.4 million gain in the first quarter of calendar 2011. The share price of our common stock is the primary underlying variable that impacts the value of the derivative instruments. Additional factors include the volatility of our stock price, our credit rating, discount rates, and stated interest rates.  The gain in the respective periods was primarily attributable to the decrease in our common stock share price in the first quarters of calendar 2011 and 2012.

Also reflected in our financial statements for the first quarter of calendar 2011 is a loss on modification of debt and derivative instruments of $1.5 million due to an implied exchange of certain existing debt instruments held by our former senior lender as a result of certain modifications made to those debt instruments during the quarter.

During the first three months of calendar 2012, cash used in operations was $2.3 million.

Our consolidated net loss for the first quarter of calendar 2012 was $7.8 million, compared to a net loss of $5.3 million in the first quarter of calendar 2011.  The increase in net loss was primarily due to the increase in interest expense, inclusive of the amortization of the debt discount, and the $3.4 million gain on the fair value adjustments of derivative instruments recognized in the first quarter of calendar 2011, partially offset by the loss on modification and settlement of debt and derivative instruments during the prior year first quarter.

Alan P. Niedzwiecki, President and CEO, stated, "We continue to expand our natural gas tank sales which is driving revenue growth, which we expect to continue in calendar 2012."   Mr. Niedzwiecki continued, "The renewable energy side of our business is also expanding with our recent acquisition of the Zephyr Wind Farm, which added 10 megawatts of electricity generation capacity to our renewable energy portfolio.  We intend to continue the development efforts on certain renewable energy projects with strategic partners as we build out the renewable energy segment of our business."