Ballard Power Systems (Toronto: BLD.TO) (NasdaqGM: BLDP), a leader in the development, manufacture and sale of hydrogen fuel cells, announced increased revenues and a smaller net loss for the third quarter of 2007.
The company says revenues increased 53% to $17.6 million, compared to $11.5 million for the same period in 2006. (All amounts are in U.S. dollars.)
Reported net loss for the quarter decreased 10% to $16.0 million, or ($0.14) per share, compared with a net loss of $17.9 million, or ($0.16) per share for the corresponding period in 2006.
Product and service revenues increased $4.7 million, or 59%, and engineering development revenue increased $1.4 million, or 40%, compared to the same quarter last year.
John Sheridan, Ballard’s President and Chief Executive Officer said, “Ballard’s positive financial results and overall increase in commercial market shipments in the third quarter show evidence of building momentum and solid execution.”
Updated financial guidance for 2007:
The company says revenue from continuing operations is expected to meet or exceed the high end of the guidance range of $55-65 million, growth of approximately 30% over 2006. In addition, operating cash consumption is expected to meet or be below the low end of the guidance range of $40-50 million, helped in part by strengthening of the Canadian dollar.
Operational Highlights: Third Quarter 2007
Ballard shipped 254 units this quarter, a 123% increase over the third quarter of 2006. Year-to-date shipments of 551 units represent a 78% increase over the same period in 2006.
Ballard transferred assembly operations for the new Mark1030 V3(TM) product to its joint venture in Japan, EBARA BALLARD, in October. The Japanese facility doubles the company’s assembly space and expands Mark1030(TM) production capacity.
Ballard signed an agreement with Exide Technologies in October to develop an on-board hybrid hydrogen fuel cell and lead-acid battery energy system for forklift trucks. The initial contract is valued at US$1.035 million, with an additional US$1.011 million potentially available following the development of the first prototype and appropriation of additional funds.
Ballard and Plug Power were awarded $3.5 million by the U.S. Department of Defense to collaborate on the next phase of fuel cell systems development to support the Continuity of Operations (COOP) initiative.
The company claims it is on track to reduce Mark9 SSL(TM) product costs by 25% in 2007 and to reduce total cost on the Mark1020 ACS(TM) by 25%.
BUS
On August 3, BC Transit announced their selection of a consortium, including Ballard, to deliver a fleet of up to 20 fuel cell buses by the end of 2009. The buses are intended to be showcased in the Resort Municipality of Whistler during the 2010 Olympic and Paralympic Winter Games, and then integrated into the BC Transit fleet.
EMERGING APPLICATIONS
In October, Ballard signed a supply agreement with Voller Energy Group PLC to provide Ballard Mark1030(TM) fuel cells for integration into Voller’s 1kW auxiliary power units (APUs), aimed at the leisure, marine and construction markets. This is a new application of the Mark1030(TM) into consumer markets. Under the agreement, Ballard will deliver fuel cells to Voller in 2007 and 2008.
AUTOMOTIVE PROGRAMS
The company claims its Mark1100(TM) automotive fuel cell development program and its next generation automotive development program progressed on schedule. Ballard announced this quarter that it will sell the company’s automotive fuel cell assets to Daimler AG and Ford Motor Company.
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