February 12, 2009 ndash; Analyst Comments ndash; Think Equityrsquo;s David Woodburn weighed in on Westport Innovations (Nasdaq:WPRT) with a headline that ldquo;In-Line Revenues Never Looked So Good.rdquo; Woodburn rates WPRT at a BUY with a price target of $9, up 54% from current levels.

Westport Q3 Financial Results

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Consolidated revenues of $31.1 million, compared with $19.3 million for the same period last year, up 61%

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; For nine months, consolidated revenues of $95.6 million, up 70% Y/Y

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Net loss of $8.9 million, or $0.28 for the quarter, compared to net income of $7.4 million, or $0.28 per share for the same period last year

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; For nine months, net loss of $11.7 million, or $0.39 per share, compared to a net loss of $2.2 million, or $0.09 per share for the same period last yearmiddot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Cash and short term investments of $88.8 million as of December 31, 2008nbsp;

Woodburnrsquo;s Take

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Total revenues for the quarter beat estimate of $30.5 million

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; CWI and heavy engine volume missed estimate

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Gross margin of 20.4% came in lower than estimate of 24.5%

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; ldquo;Temperingrdquo; CWI engine sales estimates for FY09 and FY10, to 4,036 and 4,339, respectively ndash; still higher than estimates were heading into last quarterrsquo;s (September 08) report.

Woodburn’s assessment of Wesport’s results was buoyed by the fact that the oversoll economic climate and earnings season has been so “underwhelming”. Against this backdrop, in-line revenues is actually a relief. His estimates on future performance are adjusted to take into account low fuel prices and a slow economy.
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