Plug Power Announces Third Quarter 2012 Financial Results

15 Nov 2012

Plug Power

Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, has reported its financial results for the third quarter of 2012.

The deployment of GenDrive® units continued in the third quarter with shipments to customers such as Walmart, Procter & Gamble, BMW and Stihl. The order from Stihl, announced earlier this year, was delivered in less than six months, including the installation of the hydrogen fueling infrastructure. The Company now has over 3,000 units in the field sited at 33 different customer locations across North America. There are over 15,000 hydrogen re-fuelings performed each week on this installed base. Year-to-date shipments are double what they were during the same period in 2011.

Additionally, the Company has achieved a significant milestone in reduction of its product costs. The Company's new product platforms have a material cost that is now 60% of the product's price, a key indicator of the potential long term profitability of Plug Power. 

"Plug Power has certainly seen success in the third quarter, but we also encountered a number of product quality challenges," said Andy Marsh, CEO of Plug Power.  "These issues have been technically addressed and implementation will be significantly completed by year end. Most of the higher product costs for the quarter are associated with these quality issues."

These challenges have affected the timing on several orders and have increased our costs for the year. As a result, Plug Power is adjusting its guidance for 2012 to the following:

  • From $30M-$35M range in product and service revenue to $26M-$30M total revenue range
  • From $17M-$19M EBITDAS loss range to $27M-$29M loss range

Marsh continued, "We have a large market opportunity, a supportive customer base and a solid, stable, cost effective product platform. These have always been the key ingredients for our business and we are well positioned to be successful in 2013 and beyond."

Financial Results

Net loss for the third quarter of 2012 was $10.3 million, or $0.27 per share on a basic and diluted basis. This compares with a net loss of $6.3 million, or $0.28 per share, for the third quarter of 2011.

Total revenue for the third quarter of 2012 was $4.8 million, comprised of $4.3 million for product and service revenue and $0.5 million for research and development (R&D) contract revenue. This compares to total revenue of $5.5 million in the third quarter of 2011, which was comprised of $4.3 million for product and service revenue, $1.0 million for R&D contract revenue, and $0.2 million for licensed technology revenue.

The Company shipped 186 units during the third quarter of 2012 compared to 195 units in the third quarter of 2011. Additionally, the Company shipped 245 units during the third quarter of 2012 to a customer site in connection with a customer lease that is not yet complete.

Total cost of revenue for the third quarter of 2012 was $11.7 million, comprised of $10.9 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 $9.3 million in the third quarter of 2011, which was comprised of $7.6 million for cost of product and service revenue and $1.7 million for cost of R&D contract revenue.

R&D expenses for the third quarter of 2012 were $1.3 million compared with $1.5 million for the third quarter of 2011. Selling, general and administrative (SG&A) expenses were $3.1 million for the third quarter of 2012 compared with $3.6 million for the third quarter of 2011. Additionally, $0.6 million was expensed for amortization of intangible assets during the third quarter of 2012 and 2011.

Cash and Liquidity

Net cash used in operating activities for the third quarter of 2012 was $7.1 million. Plug Power had cash and cash equivalents of $9.5 million and net working capital of $15.6 million at September 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.

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.

Source: Plug Power


Industry Directory: Plug Power

ShareThis

Receive emails

New emailSign up using the 'Register' button at the top of the page.

Industry Review

The Fuel Cell Industry Review 2013: Available now for free download.

2013 IR Cover

Applications

Our Using Fuel Cells In series of info sheets highlights applications where fuel cells offer benefits today.

Glossary

View our glossary of terms.

Contact Us

If you would like to contact us, please click here.

© Johnson Matthey Plc 2018