News

Ballard Reports 2008 Financial Results

March 05, 2009 by Jeff Shepard

Ballard Power Systems announced its financial results for the fourth quarter and full-year ended December 31, 2008.

"Ballard had a strong fourth quarter and solid financial results for the full year," said John Sheridan, President and CEO. "We grew revenues 17% on a pro forma basis, reduced operating cash consumption by 23% and ended the year with $85.4 million in cash reserves. As a result, we believe we are well positioned to execute our growth plan, although the challenges are heightened by the macro-economic conditions."

In 2008, revenues were $59.6 million, representing a 9% decline from $65.5 million in 2007 and meeting the revised guidance range of $58 to $64 million. However, adjusting for light-duty automotive engineering development revenue of $1.6 million in 2008 and $15.8 million in 2007, which relates to the business sold to AFCC, pro forma revenues increased $8.2 million, or 17%, compared to 2007.

Product and service revenues totaled $52.7 million, an increase of $9.4 million, or 22% compared with 2007. An $8.8 million increase in product revenues to $38.2 million was driven by higher shipments of bus, material handling, light-duty automotive and backup power fuel cell products, partially offset by lower shipments of residential cogeneration and material products.

The decline in residential cogeneration product sales was expected due to the introduction in 2008 of a new lower cost product combined with the delivery of fuel cell membrane electrode assemblies instead of fuel cell stacks, as the fuel cell stacks are now assembled in Japan by Ballard’s joint venture, EBARA BALLARD.

Operating expenses declined $29.3 million, primarily due to lower research and development expenses on automotive fuel cell programs as a result of the automotive transaction.

Net income increased to $34.1 million, or $0.40 per share, compared to a net loss of $57.3 million, or ($0.50) per share, in 2007. Net income for 2008 included a gain on sale of assets of $96.8 million resulting from the automotive transaction, partially offset by the write-down of a non-core investment of $3.0 million.