Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Quite an interesting earnings report from alternative energy engine maker Westport Innovations (WPRT) last evening. The company crushed analysts expectations on the top line: $100.6M v $58.3M yet still missed on the bottom line by 4 cents (-.30c vs -.26c). That is sort of disappointing. The company continues to do a lot of joint ventures with some serious heavy hitters – hopefully they can begin monetizing those relationships in a profitable way
Technically the stock had a huge run in January thru mid February and needs to consolidate such a move which has been doing the past few weeks. The reaction to the report was positive but modest.
Let’s take at a closer look at the report, which shows tremendous revenue growth.
“We exceeded our revenue expectation and generated over $264 million for the twelve months ended December 31st, an increase of 83% compared to $144 million in calendar year 2010,” said David Demers, CEO of Westport Innovations. “With strong growth opportunities in all areas of our business, we now expect consolidated revenue for calendar year 2012 to reach between $400 and $425 million, representing growth of approximately 50% over calendar 2011.”
- Westport’s consolidated revenue for the three months ended December 31, 2011 was $100.6 million, an increase of $61.1 million, or 154.7%, from $39.5 million for the three months ended December 31, 2010.
- This increase was driven by an increase in Westport LD revenue of $14.7 million to $22.6 million as the Company began consolidating Emer on July 1, 2011 and AFV on October 23, 2011. CWI product revenue increased $25.3 million to $48.3 million as unit sales increased from 1,036 units to 2,011 units primarily as the result of increased sales volume of ISL G engine sales in the Americas. CWI parts revenue increased by $1.4 million quarter over quarter to $9.5 million due to an increase in the number of units in service and an expanded parts list.
- Westport HD revenues for the quarter ended December 31, 2011 increased by $19.7 million to $20.3 million due to $9.8 million in service revenue recorded in the current quarter under our Volvo development agreement; an increase in product revenue to $9.5 million as unit sales increased to 170 units for the quarter ended December 31, 2011 compared to nil in the prior year period; and an increase in parts revenue to $1.0 million.
- For the three months ended December 31, 2011, gross margin was $39.6 million, or 39.4% of total revenue, compared to $12.9 million, or 32.5% of total revenue, in the prior year period.
- Westport’s consolidated net loss attributed to the Company for the three months ended December 31, 2011 was $14.5 million, or a loss of $0.30 per share, compared to net loss of $13.5 million, or a loss of $0.31 per share, in the three months ended December 31, 2010.
Westport Innovations Inc. is a leading global supplier of proprietary solutions that allow engines to operate on clean-burning fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen, and renewable natural gas (RNG) fuels such as landfill gas and helps reduce greenhouse gas emissions (GHG).
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
