Plug Power Inc. (Nasdaq: PLUG) has reported recent operational accomplishments and financial results for the quarter ended June 30, 2006.
Total revenue for the second quarter ended June 30, 2006, was $2.8 million, compared to $3.7 million for the second quarter in 2005. Year-to-date total revenue was $5.0 million, compared to $6.9 million in the prior year period. The Company continues to defer product and service revenue, a component of total revenue, at the time of sale and amortize that revenue over the period of the underlying service and other contractual obligations. Deferred revenue was $3.9 million at June 30, 2006, compared to $4.7 million at June 30, 2005.
Net loss for the quarter ended June 30, 2006, was $13.0 million, or $0.15 per share, compared to $10.9 million, or $0.15 per share, for the same period in 2005. Year-to-date net loss was $25.2 million, or $0.29 per share, compared to $23.4 million or $0.32 per share for the same period last year.
Net cash used in operating activities for the second quarter ended June 30, 2006, was $10.5 million, compared to $9.2 million in 2005. Year-to-date net cash used in operating activities was $21.5 million compared to $19.4 million in the prior year.
Plug Power management noted that the Company has $290 million in cash and marketable securities, providing the resources and impetus to help accelerate its path to profitability. In addition to the $217 million in cash from the recently closed Smart Hydrogen investment, Plug Power anticipates leveraging the new relationship for increased access to the vast Russian market and technical collaboration with Russian scientists.
“With the completion of the Smart Hydrogen transaction, Plug Power is entering an exciting, dynamic stage in terms of globalization and commercialization,” said Roger Saillant, Plug Power’s CEO. “Our aggressive pursuit of global sales and product development bodes well for achieving all of our 2006 milestones.”
Among recent global sales is Telefonica Moviles, one of the two largest wireless providers in Latin America, which began deploying Plug Power’s GenCore(R) backup power systems in Venezuela. With more than 10,000 sites across Central and South America, Telefonica Moviles offers Plug Power significant potential for future sales. In addition to this South American success, the Company believes Russia and South Africa represent promising market opportunities.
While global opportunities are expanding, Plug Power is simultaneously developing domestic sales in both the private and public sectors. Increasing orders and interest for backup systems within the telecommunications industry, government market and public safety field have been encouraging. Plug Power also recently installed its first system funded by the U.S. Department of Homeland Security, as well as units for the New York State Energy Research and Development Authority, both of which could serve as national models.
“By accelerating our sales and market development efforts – both at home and abroad – we can better seize opportunities and position our technology and products among leaders of the telecommunications and other targeted industries,” said Greg Silvestri, Plug Power’s newly named President.
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