Integrated Product Team (IPT) Partnership Program Launched
TSX Venture Exchange symbol: HGS
MISSISSAUGA, ON, Nov. 8 /CNW/ - Hy-Drive Technologies Ltd. ("Hy-Drive")
(TSX-V: HGS) today announced its financial results for the three and
nine month period ended September 30, 2007. This release also covers Financial
Statements for the Company and an accompanying MD&A released earlier at
Third Quarter Highlights
- The Company formally launched its ISO 14064 process compliant,
Greenhouse Gas Reduction Program (GGRP). This program allows
commercial trucks making full use of the Hy-Drive clean-air operating
system to earn up to sixteen (16) tonnes of reductions and removals
in carbon dioxide equivalent in each year of operation by virtue of
our relationship with the supplier of the Hy-Slip(TM) product.
- The Company, along with Martinrea International Inc. (TSX: MRE)
reached a settlement with Canadian Hydrogen Energy Company Ltd.
(CHEC) with respect to a number of lawsuits between the parties and
others. The no-cost, no-fault settlement agreement brings resolution
to the lawsuits involving the three corporations.
- The Company discovered a correctable design defect in its HGS product
manufactured prior to June 2007. The Company notes that all fielded
products affected by the previously announced swap-out have now been
- The Company formed a Corporate Strategy and Transition Committee to
conduct a review of corporate structure/management, general sales
and marketing strategy and oversee a third party review of the status
of the Company's product line.
- The Company launched its Integrated Product Team (IPT) Partnership
Program and plans to install 125 Hydrogen Generating Systems (HGS) of
its Clean Burn Technology(TM) on selected partner trucks by year-end.
This program was initiated to allow the Company to validate HGS
product performance on various engine types prior to a larger product
rollout strategy. The Company has 127 HGS units in operation in the
North American trucking sector with plans to install an additional
125 Clean Air Operating Systems under our IPT Partnership Program
during the fourth quarter of 2007. The Company also plans to install
an additional 46 units to support new potential sales. Many of these
installations are scheduled for companies with larger fleets. Those
companies require that we install a small number of units on their
trucks during a trial period. Larger orders are contingent upon
satisfactory performance and reliability being determined during the
The Company recorded a loss of $3,683,179 ($0.06 per share) during the
third quarter of 2007 compared to a loss of $2,169,225 ($0.04 per share) in
the third quarter of 2006, and a loss of $7,166,474 ($0.12 per share) during
the second quarter of 2007.
The Company reported cash and cash equivalents and short term investments
of $17,745,239 as at September 30, 2007 compared to $21,819,089 as at June 30,
2007, $24,104,038 as at March 31, 2007, and $16,523,511 at December 31, 2006.
The following table sets out selected financial data relating to the
Company for the three months and nine months ended September 30, 2007 and
RESULTS OF OPERATIONS/FINANCIAL POSITION
Results of Operations/Financial Position as at September 30, 2007 and
Three months ending Nine months ending
Sept 30, 2007 Sept 30, 2006 Sept 30, 2007 Sept 30, 2006
Revenues $ - $ 280,090 $ 98,743 $ 745,059
Cost of sales - 239,987 47,470 595,475
Gross profit $ - $ 40,103 $ 51,273 $ 149,584
Expenses 3,939,936 2,255,541 13,563,870 5,052,426
other income 256,757 46,213 696,015 107,268
Net loss $ (3,683,179) $ (2,169,225) $ (12,816,582) $ (4,795,574)
per share $ (0.06) $ (0.04) $ (0.21) $ (0.10)
Revenue for the three months ended September 30, 2007 was $nil, as
compared to revenue of $280,090 for the three months ended September 30, 2006.
Revenues recognized in 2006 include $265,000 of sales to Hy-Drive
distributors. Shipments of HGS systems during the third quarter of 2007 do not
qualify as revenue under the Company's revenue recognition policies. The
Company has commenced its 'case study' Integrated Product Team (IPT)
Partnership Program, and is carefully monitoring the results obtained by our
partners while using the HGS system as part of the GGRP.
The Company launched its IPT Partnership Program under which it plans to
install 125 HGS units with its Clean Burn Technology(TM) on selected partner
trucks by year-end. The IPT program was initiated to generate a controlled
environment under which the HGS technology can be monitored, managed and
re-configured, as required in order to achieve optimum results. The results of
the IPT Partnership Program will complement other ongoing lab testing work and
should allow the Company to validate HGS product performance on various engine
types, thus setting the stage for a larger product rollout strategy.
Currently, we have 127 HGS units in operation in the North American trucking
sector. Additionally, we plan to install an additional 46 units to support new
potential sales. Many of these installations are scheduled for companies with
larger fleets. Those companies require that we install a small number of units
on their trucks during a trial period. Larger orders are contingent upon
satisfactory performance and reliability being determined during the trial
period. Hy-Drive is on-track to more than double the number of units installed
on trucks by year-end. The current plan is to commence a limited roll-out of
the HGS - G3 during the first quarter of 2008. Any further larger scale
roll-out will be dependent upon performance and reliability results
accomplished during the next six months. The Company has reviewed its cost
structure and has implemented several cost containment initiatives in order to
conserve cash during the critical period of final development and on-board
product testing. As verifiable results are obtained and product reliability is
confirmed, the Company will accelerate its commercial roll-out strategy with a
combination of in-house assembly capabilities and out-sourced assembly
With the funding raised in 2006 and 2007, the Company currently has
sufficient capital to meet its approved business plan objectives, but may
consider the need to raise additional funds for working capital, potential
expansion opportunities, additional technical advancements or other
Hy-Drive is an energy technology firm that has developed a proprietary,
patented hydrogen generating system. The Hy-Drive system generates and injects
hydrogen gas into a regular internal combustion engine, enhancing the
combustion process by allowing fuel to burn more efficiently and completely.
For further information, visit www.hy-drive.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release may constitute
forward-looking statements. Such statements reflect Hy-Drive's current views
with respect to future events and are subject to certain risks, uncertainties
and assumptions. Many factors could cause Hy-Drive's actual results,
performance or achievements to be materially different from any future
results, performance or achievements that may be expressed or implied by such
forward-looking statements, including among other things, those which are
discussed under the headings "Risk Factors" and elsewhere in documents that
Hy-Drive files from time to time with securities regulatory authorities.
Should one or more of these risks or uncertainties materialize, or should
assumptions underlying the forward-looking statements prove incorrect, actual
results may vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Hy-Drive does not intend, and
does not assume any obligation, to update these forward-looking statements.
The TSX Venture Exchange has in no way approved nor disapproved the
contents of this press release. The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Corporate Information: Tom Brown, President &
CEO, Tel: (905) 542-3024 x222, firstname.lastname@example.org; Tom Wallace, CFO, Tel:
(905) 542-3024 x257, email@example.com