Westport Innovations (NASDAQ: WPRT ) and Delphi Automotive (NYSE: DLPH ) are teaming up to advance a key auto engine technology. The former announced that the two companies have signed a joint development agreement for Westport's high pressure direct natural gas injectors. The financial terms of the deal were not made public.
Under the agreement, the two companies will work together to develop the technology, with Westport investing in critical production equipment and Delphi providing designers and certain resources to the project. Based on current estimated demand for the fuel injection segment, Westport says the collaboration should result in annual production capacity exceeding 100,000 injectors over the next four years.
Westport's natural gas injectors are designed for use in heavy-duty engine applications.
The announcement comes less than a week after Westport posted its Q4 and fiscal 2013 financial results. For the quarter, revenue was up 32% on a year-over-year basis to $52.6 million, although net loss more than doubled (to $89.5 million from $37.6 million). For the full year, the top line was $164.0 million, an improvement of 5% over the 2012 figure, while net loss deepened by 88% to $185.4 million.