QuestAir Technologies Inc. has reported its unaudited financial and operational results for the first quarter of fiscal 2008 and having noted a number of highlights from 2007, is looking ahead to an even stronger year in prospect.
Revenue for the quarter, ended 31st December 2007, stood at $1.567m for the quarter at a decrease of 5% compared to the same period in fiscal 2007. A decrease of 8% in sales order backlog had also been declared, though the company has pointed to a number of highlights for the quarter and is optimistic of the coming months and year ahead.
The company’s prototype H-6200 hydrogen purifier was successfully started-up at the ExxonMobil refinery in France and testing of the prototype plant has been proceeding well, with results to date consistent with its expected performance. In November 2007, QuestAir successfully commissioned two M-3200 PSAs that were purchased by Verdesis as part of a biomethane processing plant. The gas generated from the plant has met the specifications for injection into the local natural gas grid, which validates the ability of QuestAir’s PSAs to meet the needs of the European biogas market.
Also during the quarter, the company successfully commissioned an M-3200 PSA which is supplying compressed biomethane to the city of Salzburg bus fleet. Salzburg AG has committed to converting 10% of their bus fleet per year over to CNG powered engines.
Speaking of these successes, Jonathan Wilkinson, President and CEO of QuestAir, said, “We are very pleased with the results from the prototype test thus far. The prototype H-6200 hydrogen purifier has demonstrated its ability to recover hydrogen from plant gas streams and return purified hydrogen for plant applications. The robustness of the prototype plant under various conditions bodes well for future sales of this product in the refinery market.”
“Our financial results for the first quarter of fiscal 2008 were mixed. Cash burn was
down considerably, but revenue was also down compared to the prior period. This reflects the quarterly fluctuations in our business that we regularly experience resulting
from variability in receipt of new sales orders, customer timelines for shipment and
commissioning of PSAs, and associated changes in working capital items.”
Commenting on the outlook for the remainder of fiscal 2008, Wilkinson said, “Our priorities for the next few months include completing the test of the prototype plant,
and building our commercial products business. The testing of the prototype plant is expected to be completed by the end of March 2008. Growing our industrial hydrogen business is another priority over the coming months. We expect that the expansion of product capacity that we undertook in fiscal 2007 will improve our competitive position in the medium capacity range of the market.”