The group, which supplies gas purification systems for refinery, industrial and fuel cell markets turned in a first quarter net loss of 2.5 mln cad compared with a loss of 2.6 mln on revenues of 998,000 cad, up from 61,000 cad. 

For the year to Sept 30 2004, the net loss was 9.5 mln cad, down from a loss of 16.1 mln cad a year earlier, on revenues up 62 pct to 3 mln cad. 

QuestAir president and CEO Jonathan Wilkinson said the group's offering last December has provided it with the financial resources to bring its second generation gas purification products to the marketplace on an aggressive timetable. 

"Our results for the first quarter of fiscal 2005 were in line with management's expectations, and our plan for 2005 remains on track," he said. 

He added that the key focus for the coming quarter remains the development program with ExxonMobil Research and Engineering Company, and the continued growth of commercial sales. 

At the end of September, the group's sales order backlog for the group was 3.9 mln cad. This had risen to 5.5 mln cad at the end of December. The increase mainly related to two gas purification system orders received during the quarter. 

QuestAir's milestones for the fiscal year ending Sept 30 2005 are to receive a purchase order for a prototype large capacity hydrogen PSA; to increase revenue by at least 100 pct over 2004 levels; to manage average cash used in operating activities and capital requirements to under 8.5 mln usd; and, to sign an additional distribution agreement for QuestAir's first generation gas purification products with a leading hydrogen plant vendor. 

Questair also aims to receive the first purchase order for a methane purification system for landfill gas processing and to enter into an agreement to demonstrate use of QuestAir's technology for hydrogen recovery from molten carbonate fuel cell systems. 

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