QuestAir Technologies Inc. has reported its unaudited financial and operational results for Q2 2007.

New orders for gas purification equipment during the quarter totaled $2.1 million, including a CAN$0.7 million order from Air Liquide U.S. for a H-3100 PSA system to recover waste hydrogen from a petrochemical plant in Texas.

Revenues totalled CAN$0.9 million for the quarter, and CAN$2.5 million for the half year ended March 31, 2007 (this is down from CAN$3.7 million for the half year in 2006). This decreased due to lower revenue from engineering service contracts and from the prototype H-6200 hydrogen purifier ($quot;prototype plant$quot;) which is being sold to an ExxonMobil refinery in Europe.

As a result of these difficulties the company recorded a a net loss of CAN$4.3 million for the quarter and CAN$6.5 million for the half year ended March 31, 2007. Jonathan Wilkinson, president and CEO of QuestAir, explained the losses saying, $quot;A number of commercial PSAs remain in our sales order backlog at March 31st pending commissioning at customer sites, meaning that our recognized revenue during the quarter was lower than we would have liked.$quot;

However, he believes that came the end of the year the figures will add up saying, $quot;We expect that these units will be successfully commissioned during the balance of the fiscal year, allowing us to recognize revenue on these projects later in the year. In addition, we incurred additional costs related to the construction of the prototype plant, which contributed to the loss for the quarter.$quot;

Looking to the future he explains, $quot;We are focused on three key priorities for the remainder of the year, namely the successful start up and operation of the prototype plant at ExxonMobil's refinery in Europe; continued growth in the sales of our commercial gas purification products; and successfully securing an engineering service contract to bring our rapid cycle PSA technology into a new market.$quot;