Ballard Reports Falling Costs Rising Revenues and Goal to reach Break-even
Ballard Power Systems announced its consolidated financial results for the first quarter ended March 31, 2014 were led by gross margin of 25%, a 1-point improvement, cash operating costs of $6.3 million, a reduction of 23%, adjusted EBITDA of ($1.8) million, an improvement of 60%, total fuel cell product and service revenues of $14 million, an increase of 13%, and net income of ($3.8) million or ($0.03) per share, improvements of 52% and 61%, respectively. The company also confirmed its full year guidance for revenue growth of approximately 30% and approximately break-even Adjusted EBITDA.
John Sheridan, President and CEO said, â€œOur Q1 results reflect continued improvement in key metrics, consistent with our business outlook and full-year guidance for 2014. Top line revenue grew 13% year-over-year and, on the bottom line, we achieved a 23% reduction in cash operating costs and a 60% improvement in Adjusted EBITDA. We also strengthened our liquidity position, ending Q1 with cash reserves of $41.6 million, due primarily to the exercise of warrants related to our 2013 equity financings.â€
Mr. Sheridan added, â€œAlso, after the quarter we were pleased to close a strategic transaction with United Technologies Corporation, giving Ballard a commanding industry position in fuel cell intellectual property and strengthening our ability to grow shareholder value.â€
Under the agreement, Ballard has acquired UTCâ€™s fuel cell IP portfolio, consisting of approximately 800 patents and patent applications as well as patent licenses, invention disclosures and know-how. Ballard and UTC have also formed a strategic alliance to focus on IP licensing and other market opportunities for Fuel Cell Products and Engineering Services.