Ballard Power announces "disappointing" financial figures
Vancouver - Ballard Power Systems announced consolidated financial results for the fourth quarter ended December 31st, 2014 and full year 2014.
Summary of Q4 & Full Year 2014 Results Ballard's 2014 financial performance was impacted by lower-than-expected sales in the Telecom Backup Power market. In addition, fourth quarter results were adversely impacted as a result of the termination of licensing contracts in China and product warranty provisions.
For full year 2014, compared to the prior year, revenue grew 12%, to 68.7 million US-Dollar ($) and gross margin was down 12 percentage points, to 15%, resulting in Adjusted EBITDA of ($18.6) million.
In Q4 2014, compared to the same quarter last year, revenue decreased 10%, to $15.6 million and gross margin was down 53 percentage points, to (19%), resulting in Adjusted EBITDA of ($16.1) million.
2015 Business Outlook A Technology Solutions transaction with Volkswagen Group (Volkswagen AG and Audi AG) announced earlier this month and closed on February 23rd, 2015 significantly impacts the Company's liquidity and net income for 2015 and beyond. The transaction has an aggregate value of approximately $80 million and is comprised of two key elements - Transfer, by Ballard, of the automotive-related portion of fuel cell intellectual property assets previously acquired from United Technologies Corporation (UTC), in return for payments from Volkswagen Group totaling $50 million. Ballard received $40 million at the close of the transaction, 25% of which will be paid to UTC as a royalty payment pursuant to the agreement announced on April 24, 2014. The Company expects to receive the remaining $10 million by Q1 2016, which will be subject to a 9% royalty payment to UTC; and
Source: IWR Online, 26 Feb 2015
