News

Ballard Reports ‘05 Results and Gets New President and CEO

February 23, 2006 by Jeff Shepard

Ballard Power Systems announced that John Sheridan has been appointed President and CEO at the same time that the company reported smaller losses on lower overall sales, but with increased sales in power generation markets for the year ended December 31, 2005. Mr. Sheridan has stepped down as Chairman of the Board and Mr. Ian Bourne, a director of Ballard since 2003 and the lead director since October 2005, has been appointed non-executive Chairman.

"2005 was an important year for Ballard as we repositioned the company and developed a commercial strategy with a sharper focus, which has opened new opportunities for Ballard in materials handling and backup power markets," said John Sheridan, Ballard's newly appointed President and Chief Executive Officer. "As well, our natural gas-fueled cogeneration fuel cell product captured the leading position in the Japanese market and Ballard-powered fuel cell vehicles continued to demonstrate outstanding performance in automotive markets around the world."

Ballard's revenue in the fourth quarter and fiscal year ended December 31, 2005 was $17.7 million and $53.7 million respectively, compared to $20.5 million and $81.4 million for the same periods in 2004. Fourth quarter revenues decreased $2.9 million as a result of the sale of BPSAG and lower heavy-duty bus fuel cell shipments, offset by increased engineering service and other revenue. Full year revenues decreased $27.6 million.

Lower product revenues for the year were due to the timing of our automotive customers' fuel cell vehicle fleet deployments, which mainly occurred in 2003 and 2004. Engineering service revenue increased for 2005 as a result of two factors: Commencement of revenues under the next generation light-duty fuel cell engine and electric drive programs and 1 kW residential cogeneration fuel cell program in the second half of 2005. And the completion of the development phase of the previous generation light-duty fuel cell engine program, which began in the first half of 2004.

Net loss for the quarter and fiscal year ended December 31, 2005 was $16.1 million ($0.14 per share) and $87.0 million ($0.73 per share) respectively, compared to $55.1 million ($0.46 per share) and $175.4 million ($1.48 per share) for the same periods in 2004.