Westport changes 2014 revenue outlook

Westport changes 2014 revenue outlook

Westport Innovations of Canada decided to change its revenue outlook for the year 2014, based on several factors. 


As a result of these factors, Westport has changed its forecasted 2014 revenue outlook to a range of $130 million to $140 million and will not expect its three operating business units combined to be positive adjusted EBITDA for this year.

According to the company, continued market uncertainty in Westport’s primary markets—Europe, Russia and China—have impacted revenue in the Applied Technologies business in the second half of 2014.

Key OEM development partners are moving to the newly co-developed Westport™ HPDI 2.0 injectors, which are expected to lower the cost of the system and provide benefits, but the revised development schedule will defer related service revenue milestone payments in the near term. Westport will, however, be able to reduce its overall program expenses, offsetting the reduction in service revenue; and synergies across multiple customer programs are expected to allow better long-term returns.

Westport customer who placed a significant order for Westport iCE PACK LNG tank systems has been unable to provide sufficient comfort to Westport that it will be able to meet its obligations and requirements in respect of such orders, and as such Westport does not intend to ship product to this customer until such comfort has been received.

Looking ahead, the company reiterates its stated goal of reporting consolidated positive adjusted EBITDA by the end of 2015, which will be driven by matching investments and expenses with the pace of market adoption, contributions from Westport’s operating business units, Westport’s share of net income (loss) from the joint ventures, and service revenue earned from Westport’s development partners.

 

Press Release, October 1, 2014; Image: Westport