SANTA ANA, Calif., April 30, 2007 (PRIME NEWSWIRE) -- Fuel Systems Solutions, Inc. (Nasdaq:FSYS) today said that its previously announced voluntary review of stock option grants is proceeding and the company has been assigned an early May hearing date before a NASDAQ Listing Qualifications Panel to address the potential delisting of its common stock related to a delay in filing its Form 10-K.
Separately, the company said preliminary unaudited financial results indicate that 2006 sales climbed approximately 26 percent from the prior year to approximately $221 million for 2006. The company emphasized that net income on an unaudited basis will be impacted significantly by higher fourth quarter foreign exchange losses of approximately $800,000; a higher effective income tax rate of approximately 50 percent; and increased interest expense from greater utilization of bank lines of credit.
The company has not made any assessment regarding the impact, if any, on 2006 net income as a result of its stock option investigation. While the special committee has not completed its review, a preliminary determination has been made that measurement dates for accounting purposes may differ from recorded dates used for certain grants made during the 1996 to 2004 period. While there were no option grants made during fiscal years 2005 or 2006, additional stock-based compensation expenses could nonetheless be recorded in 2005 and 2006.
Mariano Costamagna, president and chief executive officer of Fuel Systems Solutions, emphasized that worldwide utilization of gaseous fuels and related systems for operating internal combustion engines is an important and proven alternative to gasoline-based energy sources. "An estimated 500,000 vehicles worldwide are converted annually to operate on CNG or LPG, with Fuel Systems Solutions responsible for approximately 27 percent," Costamagna said. He noted that there are approximately 16 million vehicles today operating on CNG or LPG worldwide, supported by a variety of market drivers - including energy independence, environmental considerations and economic benefits.
Fuel Systems Solutions is a holding company currently comprised of two operating subsidiaries, IMPCO Technologies and BRC Gas Equipment. Additional information is available at www.fuelsystemssolutions.com. IMPCO designs, manufactures, markets and supplies advanced products and systems to enable internal combustion engines to run on clean burning gaseous fuels such as natural gas, propane and biogas. IMPCO is a leader in the heavy duty, industrial, power generation and stationary engines sectors. Headquartered in Santa Ana, California, IMPCO has offices throughout Asia, Europe, Australia and North America. Additional information is available at www.impcotechnologies.com. BRC produces a complete range of systems for converting vehicles to gaseous fuel to meet market requirements. BRC is a leader in the light duty and automobile alternative fuel sectors and has established alliances with several major automobile manufacturers for OEM projects. Headquartered in Cherasco, Italy, BRC has offices throughout Asia, Europe and South America. Additional information is available at www.brc.it
This press release contains certain forward-looking statements that involve risks and uncertainties, including, without limitation, expressed or implied statements concerning the company's expectations regarding an internal review of its historical stock option grants, the timing of the Nasdaq listing qualifications hearing and historical stock option grants' potential impact on 2006 net income. Such statements are only predictions, and the company's actual results may differ materially. Factors that may cause the company's results to differ include, but are not limited to: risks that the review will not be completed in a timely manner; risks that the review and the announcement thereof will cause disruption of the company's operations and distraction of its management; risks that the review will identify other issues not currently being considered that could delay or alter the results of the review; and risks of adverse regulatory action or litigation.