CALGARY, Aug. 12 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS" or the "Company") (TSX Venture: AFX) announced today its financial results for the three month and six month periods ended June 30, 2010. Total revenue for the second quarter was $826,544, compared to revenue of $658,546 recorded in the same quarter of 2009. Net income for the three months ended June 30, 2010 was $30,058 compared to income of $149,283 in the same period of 2009. For the six months ended June 30, 2010, total revenue was $1,367,295 compared to $1,324,539 recorded in the same period of 2009. In the first half of 2010, the Company had a net loss of ($37,370), while in the six months ended June 30, 2009 a net profit of $41,968 was recorded.
AFS President and CEO Jim Perry stated "We have seen significant growth in our sales of engine control systems and fuel injectors this year. Revenue from engine controller sales was $526,438 in the second quarter, almost double that recorded in the same period of 2009. Fuel injector sales in the three months ended June 30, 2010 were $126,396 which was about six times higher than sales in the second quarter of 2009. We have been concentrating on growing sales of these two types of equipment, and the results we have achieved show the success of this strategy. However, margins in the second quarter of 2010 were adversely affected by start-up costs for new engine controller designs and by the strength of the Canadian dollar."
Mr. Perry added that "We have a number of engineering projects underway at the moment, but many of them are spread out over longer terms compared to those that were completed and billed in the second quarter of 2009. As a result, engineering revenue for Q2 of 2010 was lower than that recorded in the same quarter of last year. However, we are encouraged by the number of new engineering projects started in the last three months that should lead to additional revenue streams in future."
Certain statements in this News Release including but not limited to (i) statements that may contain words such as "trend", "anticipate", "could", "expect", "seek", "may", "might", "intend", "will", "believe", "should", "project", "forecast", "plan" and similar expressions, including the negatives thereof, (ii) statements that are based on current expectations and estimates about the markets in which the Company operates including India and (iii) statements of belief, intentions and expectations about developments, results and events that will or may occur in the future with respect to engine controllers or otherwise, constitute "forward-looking statements" and are based on certain assumptions and analysis made by the Company. Forward-looking statements in this News Release specifically include, but are not limited to, statements with respect to future business opportunities, nature and timing thereof; business strategy; expansion and growth of the Company's business and operations and other such matters as the case may be. Such forward-looking statements are subject to important risks, uncertainties and assumptions which are difficult to predict and that may affect the Company's operations, including, but not limited to: the impact of general economic conditions; industry conditions; customer base changes; financial market conditions; government and regulatory developments; oil and natural gas product supply, demand and pricing; foreign exchange rates; competition; market conditions in the countries where the Company operates; and the Company's ability to attract and retain qualified personnel. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do transpire or occur, what benefits or disadvantage the Company may derive there from. Except as required by applicable securities laws, the Company undertakes no intention or obligation to update or revise any forward-looking statements.
All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in the Company's current financial statements and other documents that the Company files from time to time with securities regulatory authorities. Copies of these documents are available without charge from the Company or electronically on the Internet on the Company's SEDAR profile at www.sedar.com.
Visit our website at: www.afsglobal.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ALTERNATIVE FUEL SYSTEMS (2004) INC.
For further information: For further information: Jim Perry, President and CEO, Phone: (403) 516-6632, E-mail firstname.lastname@example.org;