Ballard Issues 2001 Third-Quarter Report

November 04, 2001 by Jeff Shepard

Ballard Power Systems Inc. (Vancouver, BC) issued its report to shareholders for the third quarter ending September 30, 2001. Revenues increased during the quarter by $1.8 million, or 13 percent from the same quarter last year. For the nine-month period, year-over-year revenues increased by $14.5 million, or 66 percent to $36.4 million. For the nine-month period ending September 30, 2001, cost of revenues increased by $0.9 million relative to the same period in 2000 due primarily to higher sales volumes.

The net loss for the quarter ended September 30, 2001, was $32.4 million, or $0.36 per share, compared with a net loss of $5.7 million, or $0.06 per share, during the same period in 2000. For the nine-month period, Ballard's net loss was $95.8 million, or $1.06 per share, compared to $39.1 million, or $0.45 per share, in the prior year. The increased losses for the first nine months of 2001 reflect the accelerated pace of research and development activities and the increase in equity in losses of associated companies. Higher spending related to the implementation of business systems and infrastructure necessary to support Ballard's commercial introduction of fuel cell products, and reduced gains from issuance of shares of subsidiaries, were also contributing factors.

”Ballard has just completed one of the most significant periods in its history,” said Firoz Rasul, Ballard's chairman and CEO. “Ballard today is a stronger company. The combination of the capabilities of our associated companies, XCELLSIS and Ecostar Electric Drive Systems, together with Ballard's leadership position will form an integrated organization to successfully launch commercial products in all our target markets. The significantly increased commitment of our partners DaimlerChrysler AG and Ford Motor Co. provides us with greater capabilities and benefits. During the quarter, we unveiled our first commercial fuel cell product, the Nexa power module; received our largest fuel cell order to date; and had our first 250kW power generator successfully complete its field trial program."