FuelCell Energy, Inc. reported results and accomplishments for its second quarter ended April 30, 2009. The company reported total revenues for the second fiscal quarter of 2009 of $22.9 million compared to $31.6 million in the same period last year. Product sales and revenues were $19.3 million compared to $26.4 million in the 2008 second quarter and comparable to the first quarter 2009 total of $19.0 million. The prior year product sales and revenues were unusually high due to timing. The company’s product sales backlog as of April 30, 2009, including long-term service agreements, was $59.2 million compared to $70.9 million as of January 31, 2009 and $134.7 million as of April 30, 2008.
The current financial credit crisis caused delays in closing commercial products sales orders in the U.S. Subsequent to quarter end, the company added approximately $64.8 million of contracts to backlog.
Research and development contract revenue was $3.6 million in the second quarter of 2009 compared to $5.2 million in the second quarter of 2008. Research and development contract backlog was $19.5 million as of April 30, 2009 compared to $23.1 million as of January 31, 2009, and $8.0 million at April 30, 2008.
The second quarter net loss to common shareholders improved to $19.9 million or $0.29 per basic and diluted share compared to $25.8 million or $0.38 per basic and diluted share in the same period last year. The product cost-to-revenue ratio was 1.48-to-1 comparable to the 1.50-to-1 reported in the prior year quarter, and the 1.52-to-1 in the first quarter of 2009. In addition, the company reduced spending on internally funded research and development $0.9 million and administrative and selling $1.0 million.
Cash use in the quarter totaled $8.4 million resulting in a total cash and investment balance of $42.4 million as of April 30, 2009. Collection of customer milestone payments provided a cash benefit compared to the prior quarter which was partially offset by delays in closing contracts. Depreciation was $2.2 million and capital spending in the quarter totaled $0.8 million.
The credit crisis is creating delays in order flow affecting the company’s cash estimates for the quarter and fiscal year. The company reduced operating costs and cash use in February 2009. This included a six% workforce reduction, suspension of employer contributions to the 401(k) plan, a freeze on the level of salaries for all employees except for production employees, and other expense reductions. As a result, the company expects reduced cash use in 2009 compared to 2008 although cash use for fiscal 2009 may not meet the company’s previous expectations due to delays in the contract negotiation and closure process.
For the six months ended April 30, 2009, FuelCell Energy reported revenue of $44.6 million compared to $46.7 million for the same period a year ago. Product sales and revenues were $38.3 million compared to $36.2 million in the prior year period. The product cost-to-revenue ratio was 1.50 compared to 1.63 for the same period a year ago. The cost-to-revenue improvement is attributable to lower cost MW-class power plants. Research and development contract revenue was $6.2 million compared to $10.5 million for the six months ended April 30, 2008.
FuelCell Energy reported a net loss to common shareholders for the six months ended April 30, 2009, of $40.6 million or $0.59 per basic and diluted share compared to $45.5 million or $0.67 in the six months ended April 30, 2008.
