Hydrogenics Corp. (Toronto, Canada), a manufacturer of fuel cell technology, reported third-quarter and nine-month unaudited results. Revenues were $10.5 million for the third quarter of 2005, a 200 percent increase from revenues of $3.5 million for the comparable period of 2004, supported by the acquisition of Stuart Energy and organic growth of 32 percent. Gross profit, expressed as a percentage of revenues, was 15 percent (18 percent in 2004) and reflects a heavier weighting of onsite generation revenues.
Cash operating costs, a non-GAAP measure, defined as selling, general, and administrative and research and product development expenses, were $7.0 million, a 37 percent increase from $5.1 million in 2004, reflecting the incremental costs of Stuart Energy's operations and $1.0 million in severance costs incurred in the third quarter of 2005. Net loss was $7.5 million for the third quarter of 2005, an increase of three percent from a net loss of $7.3 million in 2004.
"Our third-quarter and nine-month revenues of $10.5 million and $28.1 million, respectively, reflect the collective effort of our three business units, supporting our continued adherence to a diversified business model offering synergistic opportunities and balanced risk," said President and Chief Executive Officer Pierre Rivard. "While our order backlog of $14.3 million decreased during the third quarter, we are well advanced on a number of compelling prospects that we anticipate will drive the sale of fuel cell products in stationary and light mobility applications, with market-leading original equipment manufacturers and end users."
