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| With 230 million diesel
engines in the world and 20 million more produced each
year, Alternative Fuel Systems has carved out an
interesting niche by focusing on pollution reducing
alternatives for this market. Its efforts have been concentrated on creating dual fuel systems that let users switch between diesel and natural gas or a mixture of the two. Products include their Eagle Diesel Dual Fuel management system for mid to heavy duty engines and the Sparrow system for cars and mini-buses. And then there is the patented Condor controlled catalytic converter for emissions treatment. On August 11, 1999 the company brought John Anderson on board as President and CEO. Anderson is a highly regarded turnaround expert who previously worked his magic at Epic data International turning a $2.3 million loss in 1997 into an $8.3 million profit in 1998 and a record seven consecutive profitable quarters. He is also a techno-whiz who holds thirteen patents in fiber optics technology. On April 6, 2000, the company brought Walter Brooks, a seasoned executive with 37 years of experience at General Motors heavy engines and trucks division onto the Board of Directors. The company's technology has been implemented in truck fleets throughout the world including Japan, Thailand and Australia. It has partnered with Hydro-Quebec on projects in China, Venezuela and Mexico. In April 2000 the company signed a $6.5 million multi-year deal with Iranian Diesel Engine Manufacturing (IDEM), a subsidiary of DaimlerChrylser. This was followed by a licensing agreement with Mitsubishi of Japan in July, and continued growth in Australia and the U.K. In October the company shipped its first batch of Sparrow IM Fuel Management Systems to IDEM and announced it would launch a research project to develop a hydrogen fuel management system that would enable diesel engines to run on the clean burning gas. The rapid growth of the company has necessitated a move into larger facilities in Calgary in the spring of 2001. In spite of this seeming success, the most recent financial statements available show a 59% decline in revenues for the nine month period to March 31, 2000 and an increase in the loss per share for the period from $0.02 to $0.09. A large one-time sale to Mexico accounted for over 80% of the company's revenues in the nine months to March 31, 1999. Discounting that sale, revenues increased 105.8%. ATF's problems previously have been revenues earned on a contract-by-contract basis, creating a volatile situation. The IDEM deal may well mark a turnaround in the company's financial prospects with a guaranteed cash flow of $6.5 million over the next few years. The company has no long term debt and raised $10 million in working capital through sale of special warrants in September and October 2000. Shares Outstanding: 37,000,000
Cummins Deal Pending, Alternative Fuel Systems Undervalued - detailed article about ATF, its development, its competitors and its prospects from May 15, 2000 Address: Phone:
403-262-1833 This page first posted: Oct. 22, 2000 |
Stock Symbol: ATF (CDNX) Profile
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