info for waI was perusing old info on the td site. This is from august 2004 by Chris Kwan.
Outlook
Management reiterated its F05 guidance and continues to expect cash break even for
CWI by the end of F05 and for WPT consolidated by the end of F06. However, with new
structure of the CWI JV starting in Q4 (revenues and costs 50-50 with Cummings) and
the unclear future of non-CWI programs (Isuzu, MAN, Ford, and BMW), F05 revenue
estimates could prove aggressive.
· Targeted 20% growth in CWI unit shipments to over 1500 engines. However, with change
in JV structure at the end of this calendar year (revenues and costs will be split 50-50), we
are forecasting overall WPT revenues to decline for F05 and likely F06 when the JV will be
split 50-50 for the entire fiscal year. Operating losses should also decline and approach
closer to break even levels currently expected for fiscal 2007.
· Annual burn rate expected to decline another 30% this year. Given remaining cash balances
near $21 million, we expect WPT will need to raise equity capital of $20 million and have
incorporated this dilution into our models. A significant increase in CWI engine sales above
20% growth or cutting non-CWI programs would lessen dilution.
· Updates on Isuzu, MAN, and BMW programs. All of which are expected later this fiscal
year. These programs will either lead to next stages of development, or be discontinued,
which would lower cash burn.
· Better Clarity On CWI China and India Programs. Both markets represent huge
opportunities to CWI, in our view. Look for program developments for local manufacturing