TORONTO, July 28 (Reuters) – Fuel cell developer Ballard Power Systems Inc. (Toronto:BLD.TO – News) reported a slightly narrower loss in the second quarter on Wednesday, as falling costs outpaced declining revenue.
Ballard said it had a net loss of $30.6 million, or 26 cents per share, in the quarter ended June 30. That compared with a net loss of $33.4 million, or 28 cents a share, in the second quarter of 2003.
The year-before results included a $7.3 million write-off on an equity investment it made in May 2001 in MicroCoating Technologies Inc., as well as $1.8 million in restructuring costs.
The firm saw a hefty foreign exchange gain of $8.3 million from the year before completely evaporate. This time around, Ballard recorded a foreign exchange loss of $1.5 million.
Analysts polled by Reuters estimates had expected, on average, a net loss of 30 cents.
The Vancouver-area company, which is still trying to make its alternative energy technology commercially viable, said it had sales in the period of $21.2 million, down from $29.1 million in the year-before period.
But the cost of product revenues fell to $10.3 million from $18.5 million, while research and development expenses retreated to $22.2 million from $27.3 million.
Ballard said in early July that it was restructuring its partnership with auto giants Ford Motor Co. (NYSE:F – News) and DaimlerChrysler (NYSE:DCX – News), selling back a unit that was developing engine component systems for fuel-cell power vehicles.
As a result of the transaction, Ballard said it expects to take a loss of $23 million in the third quarter.
The firm's shares closed at C$8.65 on the Toronto Stock Exchange (News – Websites) on Tuesday.
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