Plug Power Announces Second Quarter 2012 Financial Results

16 Aug 2012

LATHAM, NY – August 14, 2012 – Plug Power Inc. (NASDAQ: PLUG), a leader in providing clean, reliable energy solutions, today reported its financial results for the second quarter of 2012.

In the second quarter of 2012, Plug Power continued to expand upon its customer base in North America. The quarter’s GenDrive® orders included units for Lowe’s, Sysco, Walmart and Mercedes Benz, representing approximately $6.5 million in orders.

The order for Mercedes was received in early April 2012, and all 72 of the GenDrive units were installed and operational by early July. This is the quickest cycle time to date between receiving an order and deployment at a site requiring a new hydrogen fueling station.

Sysco’s Long Island (N.Y.) and Boston locations recently were commissioned to use GenDrive fuel cells, bringing the number of fuel cells used at six of the foodservice distributor’s locations to more than 600. Kroger, Compton, CA, and P&G, Greensboro, NC, round out the commissioned GenDrive sites during the second quarter of 2012.  In total, 388 units were shipped during the second quarter.

Additionally, Plug Power is in the process of shipping and installing 254 units for the Walmart facility in Washington Court House, Ohio. This deployment signifies the third Walmart facility using GenDrive, with over 500 units now in the Walmart fleet.

Although deployments continued to grow in the second quarter, factors including a slower than expected order flow and some customer deployments delayed until 2013 have negatively impacted the Company’s projections for 2012.  Given these factors, Plug Power is adjusting its guidance for 2012 to the following:

  • From $40M in product and service revenue to $30M-$35M range
  • From $12M-$13M EBITDAS loss range to $17M-$19M loss range
  • From 10% Gross Margin to minus 5% to minus 10% range for 2012 

It is important to note that the above revised product and service revenue range would still represent an almost 50% increase in year over year growth. 

“Plug Power GenDrive fuel cells have displaced over 5,000 lead-acid batteries in North American material handling operations,” said Andy Marsh, CEO at Plug Power. “An indicator of our position in the industry is that in the United States 19 out of every 20 hydrogen re-fueling fills a Plug Power fuel cell. We continue to be the leader in deploying PEM fuel cells under 25kW, with over 2,800 GenDrive units in the field, having accumulated over 8 million hours of operation.”

 

Financial Results

Net loss for the second quarter of 2012 was $6.5 million, or $0.17 per share on a basic and diluted basis. This compares with a net loss of $6.8 million, or $0.41 per share, for the second quarter of 2011.

Total revenue for the second quarter of 2012 was $7.7 million, comprised of $7.2 million for product and service revenue and $0.5 million for research and development (R&D) contract revenue. This compares to total revenue of $4.3 million in the second quarter of 2011, which was comprised of $2.6 million for product and service revenue, $1.5 million for R&D contract revenue, and $0.2 million for licensed technology revenue.

The Company shipped 388 units during the second quarter of 2012 compared to 73 units in the second quarter of 2011.

Total cost of revenue for the second quarter of 2012 was $9.5 million, comprised of $8.7 million for cost of product and service revenue and $0.8 million for cost of R&D contract revenue. This compares to total cost of revenue of $7.4 million in the second quarter of 2011, which was comprised of $4.9 million for cost of product and service revenue and $2.5 million for cost of R&D contract revenue.

R&D expenses for the second quarter of 2012 were $1.6 million compared with $1.1 million for the second quarter of 2011. Selling, general and administrative (SG&A) expenses were $3.6 million for the second quarter of 2012 compared with $3.9 million for the second quarter of 2011. Additionally, $0.6 million was expensed for amortization of intangible assets during the second quarter of 2012 and 2011.

 

Cash and Liquidity

Net cash used in operating activities for the second quarter of 2012 was $4.9 million. Plug Power had cash and cash equivalents of $15.9 million and net working capital of $25.5 million at June 30, 2012. This compares to $13.9 million and $22.5 million, respectively, at December 31, 2011.

The accompanying consolidated financial information and reconciliation tables provide additional information on the Company's year-to-date performance as it relates to milestones previously announced.

 

Conference Call

Plug Power has scheduled a conference call on August 14, 2012 at 10:00 am ET to review the Company’s results for the second quarter of 2012. Interested parties are invited to listen to the conference call by calling 877.407.8291 or 201.689.8345 for international participants.

The webcast can be accessed by going directly to the Plug Power Web site (www.plugpower.com) and selecting the conference call link on the home page.  A playback will be available online for a period following the call.

 

Additional information and financial tables can be viewed in the company's full release.

 

Source: Plug Power


Industry Directory: Plug Power

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