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Fuelcell Energy reports raising revenues and cuts losses

Danbury, USA - Fuelcell Energy, Inc. reported results for its first quarter ended January 31, 2014 along with an update on key business highlights.

FuelCell Energy reported total revenues for the first quarter of 2014 of $44.4 million compared to $36.4 million for the first quarter of 2013. Product sales for the first quarter of 2014 totaled $34.5 million, comprising $18.4 million of power plant revenue and fuel cell kit sales, and $16.1 million of power plant component sales plus site engineering and construction services, including 3.4 megawatts of fuel cell module sales to POSCO Energy that is in addition to the existing multi-year 122 megawatt fuel cell kit order. For the comparable prior year period, product sales totaled $29.1 million, including $25.1 million of power plant revenues and fuel cell kit sales and $4.0 million of power plant component sales and site engineering and construction services.

Service and license revenues for the first quarter of 2014 totaled $5.0 million comparable to the prior year period. Advanced technologies contract revenue was $5.0 million for the first quarter of 2014 compared to $2.3 million for the first quarter of 2013 with the increase attributable to acceleration of solid oxide fuel cell development under the U.S. Department of Energy Solid State Energy Conversion Alliance (SECA) program as well as revenue recognized under a previously announced data center project. This demonstration project is converting renewable biogas from a wastewater treatment facility in Wyoming into zero carbon ultra-clean electricity to power a data center.

The gross profit generated in the first quarter of 2014 totaled $2.2 million compared to a gross loss of $2.3 million in the first quarter of 2013. The first quarter 2014 gross margin was 4.9 percent and the year-over-year increase reflected continuing improvement in revenue mix including Services and continued cost reductions. Loss from operations for the first quarter of 2014 was $7.6 million compared to $11.1 million for the first quarter of 2013. Administrative and selling expenses decreased year-over-year as the prior year period included business development expenses that were non-recurring in the current year period. Research and development expenses increased year-over-year from product development initiatives that supports the market entry strategy into Europe as well as continued programs to reduce costs by consolidating select aspects of the balance of plant functions and integration of heat recovery equipment for large scale multi-megawatt installations to further reduce system costs.

Net loss attributable to common shareholders for the first quarter of 2014 totaled $11.4 million, or $0.06 per basic and diluted share. Excluding the non-cash adjustment of $2.4 million for conversion expenses for the Senior Unsecured Convertible notes, offset by a favorable impact from the fair value adjustment required on the embedded derivatives in the convertible notes, the adjusted net loss attributable to common shareholders totaled $9.0 million or $0.04 per basic and diluted share. Please refer to the accompanying Notes to Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations for more detailed information on these Non-GAAP measures. For the comparable prior year period, net loss attributable to common shareholders totaled $12.5 million or $0.07 per basic and diluted share.



Source: IWR Online, 12 Mar 2014

 


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