Westport Innovations Shows Progress, but Challenges Remain - Motley Fool
Factor in a huge drop in oil prices, making the financial benefit of natural gas engines less compelling, and challenging economic conditions in key markets in Europe and Asia, and the company is right in the middle of a race against time to cut... Let's take a closer look at the things that stood out the most, including the company's cost-control measures, what's happening at its big joint ventures, and what's going on with the transition from R&D company to OEM supplier and profitable... Lower expenses and improving margins are slowing rate of cash burn. Easily the biggest problem that Westport management has had to confront over the past year-plus is cash burn. Just one year ago, Westport had almost $169 million in cash and short-term investments. However, the company has cut operating costs and improved margins in its operating units. However, Westport used significantly less cash last quarter compared to prior periods, cutting cash burn from more than $20 million in Q1 to $10. 6 million in the second quarter. What the table above doesn't show is the improved gross margins, with product costs falling $4. 4 million on a $2. 4 million decline in product revenue. Source: www.fool.com
