Fuel Systems Solutions Reports Fourth Quarter And Year End 2010 Results

Fourth Quarter Revenue of $83.1 Million and $0.02 Net Loss Per Share Full Year 2010 Revenue of $430.6 Million and EPS of $2.23 IMPCO Business Achieved Significant 2010 Revenue Growth and Profitability

NEW YORK, March 3, 2011 (GLOBE NEWSWIRE) -- Fuel Systems Solutions, Inc. (Nasdaq:FSYS) reported results for its fourth quarter and year ended December 31, 2010.

Mariano Costamagna, Fuel Systems' CEO, said, "We achieved full year 2010 revenue of $430.6 million and maintained gross margins of 31%, buoyed by continued strength in our industrial business amidst challenging market demand in Europe. For 2011, we are focused on leveraging our global investments for future growth in both our automotive and industrial businesses and further reducing our transportation cost structure in Europe to realign our expense base with current market conditions."

Matthew Beale, Fuel Systems' President, CFO and Secretary, said, "In 2010, we invested in our future growth opportunities, bolstering our transportation business with key acquisitions that together position us as leaders in the emerging US natural gas vehicle market. We also developed partnerships with fleet customers and manufacturers of CNG and LPG fleet vehicles. In Europe, we managed both ends of the new vehicle demand spectrum, and are positioned well competitively, albeit in a weaker marketplace. Our industrial business delivered renewed growth and achieved operating profitability for the full year. Looking ahead to 2011, we will continue to invest prudently in our portfolio of businesses toward achieving our target business model, building traction in our US automotive business, and right-sizing our European cost structure."

Fourth Quarter 2010 Financial Results

Revenue for the fourth quarter of 2010 was $83.1 million, compared to $163.7 million in the fourth quarter of 2009. Fourth quarter 2010 revenue was negatively impacted by approximately $8 million of foreign exchange rate fluctuations. In addition, the revenue decrease is primarily attributable to a lower level of revenue from DOEM installations after the expiration of the Italian government's 2009 incentive program, partially offset by an increase in the industrial and other automotive business and the contribution of acquisitions made in 2009. Gross profit for the fourth quarter 2010 was $18.2 million, or 22% of revenue, compared to $56.2 million, or 34% of revenue a year ago, reflecting the reduction in DOEM volumes versus last year and changes in the mix of transportation revenue, partially offset by improved margins in the industrial and other automotive business. Operating loss for the period totaled $3.2 million as compared to operating income of $33.4 million, or 20% of revenue, in the fourth quarter of 2009. This loss reflects:

• Lower volumes and gross margin and greater R&D expenses than last year's quarter as the Company invested in new technologies;
• The inclusion of a total of $2.9 million in costs and charges, comprised of: a $0.7 million non-cash write-down of abandoned DOEM equipment assets; a $1.0 million provision for severance and temporary worker labor costs in Italy; and $1.2 million in warranty costs associated with product replacements also in Italy;
• Partially offset by lower SG&A

Net loss for the fourth quarter 2010 was $0.4 million, or $0.02 per diluted share, including the abovementioned expenses, as compared to net income of $19.9 million, or $1.12 per diluted share, in the fourth quarter 2009.