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Fuel cells: Plug Power announces 2015 third quarter results

Latham, USA - Plug Power Inc. reports its 2015 third quarter results and took major steps to achieve its 2015 objectives.

The company recorded revenue of $31.4 million and bookings that exceeded $50 million. The company recognized revenue for more than 1,200 units in the third quarter, and now has more than 9,000 units in the field. Plug Power Company performance is in line with guidance for the full year that was set forth in January 2015.

"In January, I clearly stated the goals that Plug Power intended to achieve in 2015," said Andy Marsh, CEO of Plug Power. "I also outlined the timeframes in which we expected to achieve them. I am pleased with Plug Power's execution in the business, and the fact that we have stayed on track and are on pace to achieve the goals and milestones laid out at the beginning of the year. Additionally, in the fourth quarter, we are on track for a third straight quarter of record revenues, a strong indicator of the attractiveness of Plug Power's offering."

Total revenue for the third quarter of 2015 was $31.4 million, comprised of $18.0 million in product revenue, $13.4 million in service revenue and $10,000 in research and development (R&D) contract revenue. This compares to total revenue of $19.9 million in the third quarter of 2014, which was comprised of $12.6 million in product revenue, $6.9 million in service revenue and $0.4 million in R&D contract revenue. Total revenue represents a year-over-year increase of 58.1 percent, driven by more GenDrive units sold, hydrogen infrastructure installation sales associated with seven sites in service revenues in 2015 (only three comparable sales in third quarter of 2014), and increased GenCare service revenues.

The Company recognized revenue for 1,221 GenDrive units in the third quarter of 2015 compared to 835 GenDrive units recognized in revenue in the third quarter of 2014. In regard to GenCare services, the Company had approximately 8,115 GenDrive units and 22 hydrogen infrastructure sites under service contracts as of September 30, 2015, as compared to approximately 6,000 GenDrive units and only four hydrogen infrastructure sites under service contracts as of September 30, 2014. In regard to GenFuel contracts where the Company provides hydrogen fuel to customers as part of their GenKey offering, the Company had 22 customers under contract contributing revenue in the third quarter of 2015, as compared to only four customers under contract in the third quarter of 2014.

Total cost of revenue for the third quarter of 2015 was $31.4 million, comprised of $15.1 million of cost of product revenue, $16.2 million in cost of service revenue and $10,000 in cost of R&D contract revenue. This compares to total cost of revenue of $21.0 million in the third quarter of 2014, which was comprised of $11.1 million in cost of product revenue, $9.2 million in cost of service revenue and $0.7 million of cost of R&D contract revenue. Year-over-year, this reflects continued substantial margin improvement in all business lines, with a total gross margin of break even for the third quarter of 2015 versus a total gross margin loss of 5 percent for the comparable period in 2014. The improvement stems from leverage of higher volume and continued cost downs.

Total administrative costs (including research and development and selling and general administrative) for the third quarter of 2015 were $12.3 million, as compared to total administrative costs of $7.2 million for the third quarter of 2014. The increased costs stem from incremental investments in sales and varied business functions to support continued growth in addition to multiple investments in product design and performance enhancement programs. Net loss attributable to common shareholders for the third quarter of 2015 was $10.2 million, or $0.06 per share on a diluted basis. Included in the net loss for the third quarter of 2015 was a gain of $2.2 million related to the change in fair value of common stock warrant liability, a net loss on acquisition related transactions of $0.1 million, and varied acquisition and startup costs of $0.9 million associated with completing the HyPulsion transaction. Excluding these amounts, adjusted net loss for the third quarter 2015 was $11.4 million or $0.06 per share on diluted basis.

Net cash used in operating activities for the third quarter 2015 was $13.0 million which stems from the ongoing investment in our increased commercial activity, as well as incremental investment in working capital given the inventory build activity for fourth quarter programs. Plug Power had cash, cash equivalents and restricted cash of $115.2 million and net working capital of $110.0 million at September 30, 2015.



Source: IWR Online, 09 Nov 2015

 


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