Thursday, May 24, 2012

Quantum to cut operating costs; enhance core automotive products ...

Pdf Tue 12:20 pm by Brad Lemaire

Quantum Fuel Systems () said Tuesday it plans to cut operating costs and enhance its core automotive products as it seeks to grow shareholder value.

The Irvine, California-based Quantum develops and produces natural gas, fuel cell, propulsion systems and renewable energy generation systems in the United States and overseas.?

Quantum aims to expand and enhance its profile in the alternative fuel automotive sectors by investing in its manufacturing capacity for compressed natural gas and hydrogen storage systems.

The company also plans to direct more resources toward the marketing of advanced energy storage as well as hybrid-electric propulsion system products and technologies.

It also said on Tuesday it would make strategic assessment of its renewable energy projects outside of its core automotive tech focus and review opportunities for "accretive investments" the need minimal capital commitment.

Quantum expects operating costs to improve by $4.1 million a year, after implementing the cost-cutting measures.?

These measures include executive salary reductions, eliminating duplicate administrative expenses and streamlining its organizational structure.

It also plans to relocate its executive management and the corporate support personnel to Lake Forest, California, while subletting the long-term lease on the Irvine facility.

"These actions are in full alignment with the company's new leadership and board to focus resources on our automotive-based products and technologies and to reach profitability sooner as we drive growth of the business," Quantum's interim chief executive Brian Olson said in a statement.

"Today's announcement demonstrates our resolve to manage our cost structure in an effective manner going forward, with significant strides toward this end made already and additional opportunities going forward."

"It is imperative that we focus on our core business strengths, grow the business and reduce costs in a smart and efficient manner."

Last week, the alternative fuel company reported CEO Alan Niedzwiecki and chairman Dale Rasmussen resigned from their positions. Olson replaces Niedzwiecki on an interim basis.?

The board said it would promptly commence a search for a permanent CEO and chief financial officer.

Shares rose 17.78 percent to 53 cents each on the Nasdaq on Tuesday.

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