| lkgeo1 2007-04-26, 9:25 am |
| Plug Power Installs 63 GenCore(R) Systems In First Quarter 2007 -
Company announces first quarter financial results - GenCore(R) fuel
cell systems successfully back up NYS agencies during outages
Thursday April 26, 2007 07:01:00 EDT
LATHAM, N.Y., April 26, 2007 /PRNewswire-FirstCall via COMTEX News
Network/ --
Plug Power Inc. (Nasdaq: PLUG), a leader in providing clean, reliable
on-site energy products, today announced it achieved record
installations of its GenCore(R) fuel cell system, a backup power
source for the telecommunications industry that replaces lead acid
batteries and diesel fuel generators. The Company also reported its
financial results for its first quarter 2007 that ended March 31,
2007.
Revenue for the first quarter of 2007 was $2.6 million compared with
$2.3 million in the same period of 2006. Deferred revenue was $3.9
million at March 31, 2007, up from $2.7 million as of December 31,
2006.
Net loss for the first quarter of 2007 improved to $11.2 million from
$12.1 million for the first quarter of 2006. On a diluted per share
basis, net loss was $0.13 for the first quarter of 2007 compared with
$0.14 for the comparative quarter of 2006.
Dr. Roger Saillant, President and CEO of Plug Power, commented, "Our
objective in 2007 is to install 400 GenCore(R) units, and we believe
that the first quarter results are a strong indicator of our ability
to manufacture, ship and install systems in a timely fashion."
During the quarter, Plug Power GenCore fuel cell systems demonstrated
their reliability several times for the New York Power Authority and
New York State Police, who are jointly coordinating a program to
install 24 systems in various locations throughout New York state
(NYS). In January, a GenCore system provided backup power to a NYS
Energy Research and Development Authority office for more than 60
hours during an extended power outage caused by an ice storm.
Additionally, a NYS Department of Environmental Conservation radio
communications site remained operational during multiple winter storm
related outages, including this month's Nor'easter.
Installations, Shipments, Backlog and Orders
GenCore installations in the first quarter of 2007 were 63 compared
with 28 in the first quarter of 2006. Of the units installed, 34 were
in North America, 26 were in South Africa and three were in Central/
Latin America.
Plug Power shipped 41 GenCore systems in the first quarter of 2007
compared with 15 in the first quarter of 2006. The time periods from
receipt of an order to shipment date and installation date vary widely
and are determined by a number of factors, including the terms of the
customer contract and the customer's deployment plan.
GenCore backlog on March 31, 2007 was 533 systems compared with 227
systems on March 31, 2006. Of the GenCore units in backlog at the end
of the first quarter 2007, 94 units were from orders older than 12
months.
Plug Power received orders for three GenCore systems during the first
three months of 2007 compared with 52 orders in the same period last
year. The lower level of GenCore orders reflects the timing of closing
new contracts with existing and prospective customers. GenCore orders
include firm orders, stocking orders and orders that require certain
conditions or contingencies and certain redesign elements to be
satisfied prior to shipment, some of which are outside of the
Company's control.
Dr. Saillant noted, "We are currently working with several customers
who have completed field trials, which validated for them the revenue
our fuel cell systems protect at a lower cost of ownership than
traditional alternatives. We are finding that our system can be of
great value to wireless carriers, as well as the government wireless
infrastructure."
Revenue
Product and service revenue was $0.5 million for the first quarter of
2007 compared with product and service revenue of $0.9 million in the
same period in 2006. The lower revenue in the first quarter of this
year reflects the timing of revenue recognition for previously shipped
systems and for units shipped and installed during the first quarter
of 2007. Deferred product and service revenue increased to $2.8
million at the end of the first quarter of 2007 compared with $2.5
million at March 31, 2006, reflecting the increased number of
shipments over the past year.
Research and development (R&D) contract revenue for the first quarter
of 2007 increased to $2.2 million from $1.4 million for the first
quarter of 2006. Revenue in the first quarter 2007 was primarily from
contracts with the U.S. Department of Defense, U.S. Department of
Energy, NYS Energy Research and Development Authority and NASA. There
was $1.1 million in deferred contract revenue at March 31, 2007
compared with $0.8 million at March 31, 2006.
Operational Results
Cost of product and service revenue for the quarter ended March 31,
2007, was $1.7 million compared with $1.2 million in the first quarter
of 2006, primarily reflecting a higher number of shipments and
installations and increased direct materials costs. Cost of R&D
contract revenue was $2.7 million for the quarter ended March 31,
2007, compared with $2.5 million in the first quarter of 2006.
General and administrative expenses were $4.1 million for the first
quarter of 2007, an increase of $1.7 million compared with $2.4
million for the prior year's first quarter. The increase was primarily
due to an increase in noncash, stock-based compensation expense, an
increase in sales activities and costs related to the corporate
reorganization announced in February 2007.
R&D expenses for the first quarter of 2007 were $9.3 million, an
increase of $0.3 million compared with $9.0 million for the first
quarter of 2006, reflecting an increase in noncash, stock-based
compensation expense.
Interest income grew from $0.8 million in the first quarter of 2006 to
$3.9 million in the first quarter of 2007 as a result of investment
returns from higher cash and available-for-sale security balances due
to the $217 million cash proceeds received from Smart Hydrogen in the
second quarter of 2006.
Cash and Liquidity
Net cash used in operating activities for the quarter ended March 31,
2007, was $10.8 million compared with $11.1 million for the comparable
period in 2006. On March 31, 2007, the Company had cash, cash
equivalents and marketable securities of $251.4 million compared with
$269.1 million at the end of 2006.
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