Ballard Power Systems (BLD.TO; NasdaqGM:BLDP) announced its 2006 operating achievements, and provided performance targets for 2007. All amounts are in U.S. dollars, unless otherwise noted. “In 2006 we completed our strategic re-positioning, developing a sharper focus on our core fuel cell stack business, and placing a heightened priority on nearer-term, non-automotive markets. Our agreement in December for the sale of our electric drive operations was a final step in that re-positioning. At the same time, we continued to advance our leadership position in automotive fuel cell technology,” said John Sheridan, President and CEO, Ballard Power Systems.
2006 Achievements
Financial:
– Grew revenues by 15% to $62 million from $53.7 million in 2005, meeting its guidance of $55-$65 million
– Reduced operating cash consumption by 38% to $51.4 million from $83.3 million in 2005, meeting its guidance of $50-$65 million
Product Sales:
– Shipped 315 Mark 1030 fuel cell products to customers in the residential cogeneration market, with a backlog of 65 units, against a target of 280 units shipped or booked
– Shipped 147 Mark 9 SSL fuel cell products to customers in the materials handling market, and signed a two-year supply agreement with General Hydrogen for 2,900 units, against a target of 300 units shipped or booked
Product and Technology Development:
– Delivered the next generation residential cogeneration fuel cell prototype, designed to meet the Japanese government’s targets for longer life and reduced cost
– Delivered the next generation automotive fuel cell prototype, designed to meet customer requirements for longer life and improved freeze start capability
– In its automotive technology development activities with respect to the U.S. Department of Energy’s high-volume commercialization targets, Ballard met or exceeded its goals for cost ($65/kW), freeze start (-30 degrees C in 195 seconds) and volumetric power density (1,500 Watts net /Litre). At December 31, 2006, Ballard had not achieved its durability target of 2,300 hours. The durability test is ongoing and Ballard expects to reach this target in the second quarter of 2007.
Specific 2007 performance targets include:
Financial:
– Increase revenues by up to 30% over 2006 to between $55-$65 million, on a pro forma basis, to adjust for the sale of Ballard’s electric drive operations
– Reduce operating cash consumption by up to 20% from 2006 to between $40-$50 million
Product Shipments:
– 700 Mark 9 SSL(TM) fuel cell products, primarily for the materials handling market (vs. 147 in 2006)
– 400 Mark 1030 fuel cell products, primarily for the residential cogeneration market (vs. 315 in 2006)
– 100 Mark 1020 ACS fuel cell products, primarily for the backup power market (vs. 10 in 2006)
Product and Technology Development:
– Reduce Mark 9 SSL(TM) product cost by 25%
– Transfer Mark 1030 assembly to Ballard’s joint-venture company in Japan by year end, to prepare for volume ramp requirements
– Continue to advance core automotive fuel cell technologies toward the demonstration of the U.S. Department of Energy’s 2010 targets
Loading...