Fuel Cell Technologies Reports Second-Quarter Results

August 18, 2002 by Jeff Shepard

Fuel Cell Technologies Corp. (Kingston, ON) announced results for the quarter ended June 30, 2002. Revenues during the second quarter 2002 continued to reflect the impact of delays in government-related projects. Even though revenues, second-quarter 2002 over second-quarter 2001, show a 30 percent increase, the year-to-date, six-month comparison shows 2002 revenue is only 79 percent of 2001.

Expenses for the second quarter of 2002, compared to the second quarter of 2001, show a 28 percent decrease while still achieving product development and business goals. The comparison of year-to-date expenses year-over-year shows a 25 percent decrease in expenses after six months of operation in 2002 as compared to six months in 2001. Despite reduced revenue, the net loss of $886,000 in the second quarter was in keeping with management's expectations. The net loss from operations in the second quarter of 2002 decreased by approximately 34 percent for second-quarter 2001. Year-to-date losses are 25 percent less than those incurred to this point in 2001.

The second-quarter loss was allocated among a greater number of shares in 2002 than in 2001. The number of outstanding common shares increased to 31.1 million shares in the third quarter of 2001 by virtue of a public offering of an additional 6.7 million common shares of the company. The second-quarter 2002 loss per share is $0.03, compared to a second-quarter loss per share of $0.05 in 2001.