March 30, 2010 / 12:39 PM / 8 years ago

UPDATE 1-ISE says auditors raise going concern doubts

* Says does not have enough cash for next 12 months

* Says needs to raise cash by end of current fiscal

* Q4 loss/shr $2.21 vs loss/shr $1.52 yr ago

* Q4 rev up 185 percent to $18.4 mln

March 30 (Reuters) - Canada’s ISE Ltd ISE.TO, a maker of heavy duty hybrid-electric drive systems, said its auditors had expressed substantial doubt about the company’s ability to continue as a going concern, even as it posted a wider quarterly loss.

ISE said the proceeds from its initial public offering (IPO) in February might not meet its cash needs for the next 12 months and is currently in talks with financial institutions for a potential working capital credit facility.

The company, which raised about C$16 million ($15.69 million) from the IPO, said its ability to continue as a going concern would depend on it raising additional capital before the end of its current fiscal year.

ISE also posted a wider fourth-quarter net loss, hurt by increased costs.

The company also said it does not expect sales from the second half of 2010 to match the about $35 million it recorded in the prior period, but sees first half sales increasing over the previous year.

For the quarter ended Dec. 31, the company posted a net loss applicable to common shareholders of $9.4 million, or $2.21 a share, compared with a net loss of $6.5 million, or $1.52 per share, a year ago.

Revenue nearly tripled to $18.4 million, helped primarily by revenue from fuel cell hybrid systems that sell at a higher average selling price compared with gasoline hybrid systems.

Shares of the company, which went public on Feb. 23, closed at C$4.75 Monday on the Toronto Stock Exchange.

$1=1.020 Canadian Dollar Reporting by Abhiram Nandakumar in Bangalore; Editing by Unnikrishnan Nair

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