HOWELL, Mich., May 17, 2011 /PRNewswire/ -- MWW Automotive Group (OTCBB: MWWC), a global design, engineering, and manufacturing firm serving some of the world's leading automotive manufacturers, announced today its financial results for the second quarter of fiscal 2011 ended March 31, 2011.
Net revenues were approximately $265,000 for the quarter ended March 31, 2011. The decrease is based on the impact of the unusually long-lasting complications in the general financial and automotive markets during the past twelve months, magnified by the recall and subsequent sales difficulties of Toyota, our largest customer, during the last twelve months. In addition, we are currently still processing the impact of the nuclear catastrophe in Japan, which has caused delays in the delivery of cars and crucial electronic and other parts for nearly all foreign and domestic manufacturers.
MWW has been preparing for this impact and accordingly, has streamlined its operations, reduced cost wherever possible without sacrificing production output and quality. The company has widened his market approach, won over new domestic automotive clients and recently has also entered into a new, large industrial project with a large European manufacturer. In addition, MWW is currently in the design phase of new spoilers and body-side moldings for the new vehicle models by several foreign and domestic manufacturers, expected to be launched this summer. The Company has been quoting on numerous paint projects for large domestic and foreign automotive and industrial manufacturers, and is working on new Toyota programs for the 2011 and 2012 programs that are expected to provide significant new revenue growth.
As announced earlier, the Company has currently quoted new business for about $19 Million in potential revenue and has already been awarded several new projects from domestic manufacturers, production of which is slated to begin in the 3rd and 4th quarter of 2011.Based on the cost down exercises that have been implemented, selling, general, and administrative expenses were $675,033, compared to $1,208,890 during the quarter ended March 31, 2010. The Company has reduced cash required for operations by significantly reducing operating costs, streamlining its production and assembly process and reducing staff levels. In addition, the Company is successfully managing its current liabilities, while it continues to make changes in operations to improve cash flow and liquidity and pursue additional advantageous financing opportunities. At March 31, 2011, the derivative liability fair value, net with additions, decreased to $1,053,152 resulting in non-cash income in the current period of $605,866. Net loss decreased by $1,420,550 to a loss of ($762,464) from a loss of ($2,183,014). The improvement was primarily attributed to the gain on the change of fair value of the derivative liability during the six months ended March 31, 2011 and reduced operating expenses as compared to a loss of $44,195 for the same period last year. Despite this temporary decrease in revenues, MWW's new management team has made significant progress on the Company's path of recovery, including the elimination of low gross margin products and the re-focus on high-margin, leading-edge products, including those offered by its "Class A" painting facility.