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).
2. Contract Services: Quantum also provides engineering
design and support services to … read full article at Seeking Alpha
