Following is a Small-Cap Insight column on a company with a market cap of $109.6 million published by Seeking Alpha
Quantum Fuel Systems Tech (NASDAQ:QTWW) has struggled in the past but is poised for significant growth due to renewed focus on core business, capacity expansion and favorable business environment. An operational breakeven and completion of projects could turn into a near term catalyst.
Quantum Fuel Systems Technologies (QTWW), more commonly known as Quantum, is an alternate energy company that designs and manufactures CNG storage tanks, fuel systems and other advance fuel and propulsion systems for hydrogen, electronic, hybrid and PHE vehicles. The company supplies its products to truck and automotive OEMs, aftermarket, aerospace firms and government agencies. However, Quantum gets most of its revenues by supplying CNG storage and fuel systems for trucks and passenger vehicles. The company essentially offers and cleaner and cost effective alternative to consumers who use diesel, or gasoline, powered vehicles.
The company has been operating through two primary segments; Fuel Storage & Vehicle Systems and Renewable Energy, but is now divesting from the latter.
Earlier in April, 2010, Quantum acquired Schneider Power, a small independent power producer and developer of renewable energy projects in Canada. However, 2 years later, Quantum decided to sell Schneider Power and all of its related assets. As a result, the Renewable Energy segment is now a part of its discontinued operations.
The fuel storage and vehicle systems segment gets its revenues from two sources; product sales and contract services
1. Product Sales: These revenues are generated through sale of products that mainly include alternative fuel storage, delivery and control systems and by selling its mobile hydrogen refueling stations. In 2012, Quantum also used to generate revenues in this segment by supplying components to Fisker Automotive (discussed later in the article).