Ballard Power Systems (Toronto: BLD.TO; NasdaqGM: BLDP), a leading fuel cell manufacturer, announced substantially higher 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 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 Q306.
John Sheridan, Ballard’s President and CEO 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.”
Ballard also updated financial guidance for 2007, projecting that revenue from continuing operations would meet or exceed the high end of the guidance range of $55-65 million, growth of approximately 30% over 2006.
In addition, cash burn should be at or 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 Q306. Year-to-date shipments of 551 units represent a 78% increase from Q306.
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 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%.
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.
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. 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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