Plug Power Inc. (Nasdaq: PLUG), a manufacturer of on-site fuel cell energy products, reported financial results for the quarter ended September 30, 2006.
Revenue was down sharply from $3.9 million in Q3 2005 to $1.8 million for this quarter. Year-to-date total revenue is $6.8 million, compared to $10.8 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 $3.2 million at September 30, 2006, compared to $3.1 million at December 31, 2005.
Research and development expenses were $11.6 million for the third quarter of 2006 compared to $9.5 million during the same quarter in 2005. Year-to-date R&D expenses were $30.6 million for the nine months ended September 30, 2006, compared to $27.1 million for the nine months ended September 30, 2005.
Net loss for the quarter ended September 30, 2006, was $11.9 million, or $0.14 per share, compared to $11.9 million, or $0.15 per share, for the same period in 2005. Year-to-date net loss was $37.0 million, or $0.43 per share, compared to $35.3 million or $0.47 per share for the same period last year.
“We have received orders for more than 400 systems so far this year, and we continue to gain traction within the global telecommunications market sector,” said Roger Saillant, Plug Power’s CEO. “We remain confident that we will achieve each of our publicly disclosed milestones for 2006.”
Key accomplishments against 2006 milestones include:
Grow the number of GenCore® orders received to between 500 and 750:
Plug Power grew year-to-date order total to more than 400 units. Among the orders was the previously announced follow-on purchase order for 120 systems by IST Holdings (PTY) Ltd., Plug Power’s South African distributor, with the majority of the systems targeted for telecommunication customers.
Expand GenCore product line feature set:
The Company exhibited its new battery-free GenCore backup fuel cell system, which uses ultracapacitor technology, at the 9th annual GSM 3G Africa conference, a leading Pan-African communication event. The ultracapacitor solution is designed to provide more reliable and durable on-site backup power in remote regions with severe climates that negatively impact battery life spans and overall performance. Plug Power systems are currently installed with telecommunication customers in a region where temperatures routinely exceed 100 degrees Fahrenheit.
Expand testing and evaluation of next-generation GenSys® continuous run product with targeted customers in the telecommunications industry:
As part of its ongoing assessment for the telecommunications market Plug Power has shipped more than 20 GenSys® units, 10 of which were commissioned at Robins Air Force Base in Georgia and eight of which are expected to be commissioned next month at NASA Glenn Research Center in Ohio. Plug Power is in negotiations with select wireless telecommunications companies with whom it expects to deploy GenSys evaluation systems later this year.
Enhance Company portfolio of strategic distribution and service partners while continuing to foster and lead industry collaboration:
Plug Power signed a Strategic Partner Agreement with the National Innovation Company New Energy Projects (NIC NEP) to collaborate on technology and market development efforts in Russia. Based on both technical and market considerations, Plug Power and NIC NEP expect to develop a comprehensive, prioritized product roadmap to drive product development and technology delivery activities in line with Russian market requirements.
The Company also formed a collaborative relationship with NexTech Materials, Ltd. to investigate development of solid oxide fuel cell power systems, including joint activities such as market research, fuel cell stack development and testing, system design and prototype construction.
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