FuelCell Energy Posts Narrow Second-Quarter Loss
FuelCell Energy Inc. (FCE, Danbury, CT) reported a narrower loss for its fiscal second quarter. The company recorded a loss of $16.8 million, or $0.35 per share, compared with a loss $19.1 million, or $0.40 per share, a year ago. Sales fell 13% to $6.1 million from $7 million during the year-ago period. FuelCell's contract revenue dropped 46% to $2.8 million, but this was greatly offset by a 74% increase in product sales to $3.3 million.
FuelCell said contract revenue declined so markedly because it completed certain contracts, including one with General Dynamics Corp. Fuelcell also trimmed its total costs and expenses by 17% to $22.1 million from $26.7 million in the prior year. Administrative and selling expenses decreased to $3.6 million from $3.7 million, and research costs dropped to $5.3 million from $6.4 million. Most of the cost savings came from the consolidation of Canadian operations in November.