Fuel cell company Ballard Power Systems (Toronto:BLD.TO; Nasdaq: BLDP) announced decreased revenue and a larger net loss for 2Q08 compared to 2Q07.
Revenue was $12.4 million in the second quarter, representing a decline of $2.0 million or 14% over the same quarter last year (2Q07: $14.3 million). On a proforma basis, excluding automotive-related engineering development revenue following the January 31 close of the company’s automotive transaction, revenue was comparable to the same quarter last year, the company said.
Net loss for the quarter was $13.5 million or $0.16 per
share, compared to a net loss of $11.1 million or $0.10 per share
in 2Q07. The $2.3 million increase was primarily driven by changes
in foreign exchange and investment income. The per share increase was
due primarily to the 30% reduction in the number of shares outstanding
as a result of the automotive transaction.
Operating cash consumption was $5.1 million in the second quarter, an increase of $1.3 million from 2Q07 ($3.8 million). The slight increase in operating cash consumption was driven by lower foreign exchange gains of $3.2 million and a decline in investment income of $1.7 million.
Operating expenses, excluding depreciation and amortization, were $14.0 million in the second quarter, a $6.3 million or 31% improvement from 2Q07 ($20.3 million), primarily due to reduced automotive research and development expenditures.
Cash reserves were $64.0 million on June 30, 2008 (1Q08: $75.4 million). Cash usage in the quarter was from operating cash consumption and investments in Ebara Ballard, the company’s joint venture in Japan. The company believes current cash reserves are sufficient to meet planned growth and development activities to the end of 2010, without considering any possible proceeds from monetizing its interest in AFCC Automotive Fuel Cell Cooperation (AFCC).
Total product shipments were 298 in the second quarter for a total of 582 fuel cell product shipments year-to-date. This represents a 15% increase from total product shipments of 259 in 2Q07. The company expects shipments to be more heavily weighted to the second half of the year for a total of over 1,700 units in 2008.
Ballard confirmed its full year guidance for 2008:
– Revenue: $65-75 million
– Operating cash consumption(1): $20-30 million
On July 2, 2008, Ballard announced an extension to its existing supply agreement with Plug Power through December 31, 2010. The previous agreement was set to expire May 1, 2009. Under terms of the new agreement, Ballard will remain the exclusive supplier of fuel cell stacks for Plug Power’s GenDrive(TM) product line of fuel cell power units.
"We are well
positioned for the second half of the year and are reconfirming
full-year guidance for revenue, operating cash consumption and total
product shipments," said John Sheridan, Ballard’s President and CEO."We are also progressing with our strategy for
accelerating fuel cell product adoption, as evidenced by recent
agreements with IdaTech and ACME Tele Power, for growth in backup power
in North America and India."
About Ballard Power Systems
Ballard Power Systems is recognized as a leader in the design, development, manufacture and sale of clean energy fuel cell products.
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