PEM Fuel Cell Developer Plug Power Announes Q3 Financial Results

Plug Power Inc. (NASDAQ: PLUG), a leader in providing clean, reliable energy solutions, today provided a progress update and reported its financial results for the third quarter of 2009.

The Company reaffirmed its milestones for 2009:

    * Secure 1,000 orders consisting of both GenDrive™ and GenSys® fuel cell units for the full year
    * Contain net cash used for operating expenses to the range of $38-42 million for the full year
    * Release the GenDrive class-2 product in the fourth quarter, broadening the GenDrive product portfolio

As a final milestone, Plug Power set a target to announce its path and timeline to profitability during the fourth quarter. This milestone was completed during its analyst and investor day meeting on October 8, 2009. By executing its strategy, Plug Power plans to be profitable by 2012, generating a positive cash flow for the first time in the Company's history. Plug Power expects to achieve this by continuing to dedicate focus and resources on its two commercial products, GenDrive and GenSys.

"For years, Plug Power has been a leader in the research and development of fuel cell products and technologies," said Andy Marsh, CEO at Plug Power. "We are now focused on becoming the leader in the commercialization of fuel cell products, focusing on material handling and prime power applications. Achieving our 2009 milestones is a critical step in proving to the investment community that the company has made the transformation from the laboratory to commercial acceptance."

Product Orders, Shipments and Backlog
Total (GenDrive, GenSys and GenCore®) product orders for the quarter were 325 units; shipments in the third quarter were 6 units. Year to date, as of September 30, 2009, Plug Power had received 582 orders and shipped 217 units. Total product backlog at September 30, 2009 was 845 units, of which more than 50% are expected to ship in 2010.

"We will begin to see several large orders shipping over the next several weeks and months and we expect to ramp both orders and shipments throughout the upcoming year," said Gerry Anderson, CFO at Plug Power.

Market demand for GenDrive is increasing as customers, such as Wegmans, Whole Foods and Sysco, move from trials to full fleet conversions. Their decisions are based on an increase in productivity, operator satisfaction, proven return on investment and a reduction in on-site carbon emissions.

Financial Results
Net loss for the third quarter of 2009 was $10.2 million, or $0.08 per share on a basic and diluted basis. This compares with a net loss of $13.8 million, or $0.16 per share, for the third quarter of 2008

Revenue for the third quarter of 2009 was $2.5 million. This compares with revenue in the same period of 2008 of $4.1 million. Product and service revenue was $1.0 million for the third quarter of 2009, and research and development (R&D) contract revenue was $1.5 million for the quarter. These amounts compare to $1.3 million of product and service revenue and $2.8 million of R&D contract revenue for the third quarter of 2008.  

Deferred product and service revenue at September 30, 2009 was $3.2 million. This compares to $4.1 million at September 30, 2008. Plug Power defers recognition of product and service revenue and recognizes revenue on a straight-line basis over the service period of each sold system. Accordingly, Plug Power expects to recognize the deferred product and service revenue over future periods as service commitments are fulfilled.

Total cost of revenue for the third quarter of 2009 was $4.1 million, comprised of $1.3 million for product and service cost of revenue and $2.8 million for R&D contract cost of revenue. This compares to total cost of revenue of $5.6 million in the third quarter of 2008, which was comprised of $1.8 million of costs of product and service revenue and $3.8 million of cost of R&D contract revenue.

R&D expenses for the third quarter of 2009 were $4.4 million compared with $7.7 million for the third quarter of 2008.

Selling, general and administrative (SG&A) expenses were $4.0 million for the third quarter of 2009 compared with $4.8 million for the same period in 2008. Additionally, $0.5 million was expensed for amortization of intangible assets during the quarter compared to $0.6 million for the third quarter of 2008.

Cash and Liquidity
Net cash used in operating activities for the third quarter of 2009 was $8.5 million. On September 30, 2009, Plug Power had cash, cash equivalents and available-for-sale securities of $71.1 million and net working capital of $70.4 million, compared with $116.3 million and $110.7 million, respectively, at September 30, 2008.

Conference Call
Plug Power has scheduled a conference call today at 10:00 am ET to review the Company's results for the third quarter of 2009. 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 of the call will be available online for a period following the call.

About Plug Power Inc.
Plug Power Inc. (NASDAQ: PLUG), an established leader in the development and deployment of clean, reliable energy solutions, integrates fuel cell technology into motive and continuous power products. The Company is actively engaged with private and public customers in targeted markets throughout the world. For more information about how to join Plug Power's energy revolution as an investor, customer, supplier or strategic partner, please visit www.plugpower.com.

Source: Fuel Cell Today