Plug Power Inc. reported its financial results for the third quarter of 2011 as well as highlights of significant milestones accomplished during the period. Plug Power states that it is now a commercially viable business, as indicated by order fill, shipment backlog and forthcoming gross margin improvements with the release of its new product platforms. For these reasons, Plug Power believes that it will be well positioned to achieve profitability by the close of 2012.
During the third quarter, Plug Power received orders for 474 units for its GenDrive fuel cell products. Year-to-date, Plug Power has orders for 1,460 GenDrive units and expects orders for 2,200-2,600 fuel cell units during 2011.
Plug Power saw significant GenDrive order traction during the quarter with both new and repeat customers. Proctor and Gamble (P&G) has joined Plug Power’s list of new customers, with GenDrive orders for sites in Alexandria, LA, Greensborough, NC and Compton, CA. In total, P&G has purchased over 220 GenDrive units for its three sites. P&G chose Plug Power’s fuel cells to power its fleets in the three facilities to reduce labor cost, eliminate space-consuming battery rooms, and decrease carbon emissions. The three facilities are all targeted to be converted in the fourth quarter.
Walmart Canada, who made its initial purchase of Plug Power’s GenDrive products for its Balzac, Canada facility in 2010, purchased 155 GenDrive fuel cell units for use in Cornwall, Canada. Also during the third quarter, Wegmans purchased an additional 75 GenDrive fuel cell systems to accommodate a facility expansion in Pottsville, PA. Wegmans currently has 136 GenDrive units deployed in its refrigerated and frozen distribution center, and will expand the GenDrive fleet into the new produce building being constructed this year.
In the food service industry, Sysco also has continued to demonstrate its leadership stance by expanding its use of GenDrive fuel cell systems by placing orders for five additional distribution facilities in North American in 2011.
"Plug Power believes that the fourth quarter results will be critical in judging the future success of the Company," said Andy Marsh, CEO at Plug Power. "In the upcoming quarter, we expect to ship four times more than the Company’s best record quarter to date, realize our first gross margin positive quarter and maintain our continual sales traction." Marsh specifically highlights, "Success in the fourth quarter will position the company for profitability in 2012."
Financial Results
Net loss for the third quarter of 2011 was $6.3 million, or $0.28 per share on a basic and diluted basis. This compares with a net loss of $9.3 million, or $0.71 per share, for the third quarter of 2010.
Total revenue for the third quarter of 2011 was $5.5 million, comprised of $4.3 million for product and service revenue, $1.0 million for research and development (R&D) contract revenue, and $0.2 million for licensed technology revenue. This compares to total revenue of $5.8 million in the third quarter of 2010, which was comprised of $4.8 million of product and service revenue and $1.0 million of R&D contract revenue.
The Company shipped 235 units during the third quarter of 2011 compared to 170 units in the third quarter of 2010.
Total cost of revenue for the third quarter of 2011 was $9.3 million, comprised of $7.6 million for product and service cost of revenue and $1.7 million for R&D contract cost of revenue. This compares to total cost of revenue of $9.0 million in the third quarter of 2010, which was comprised of $7.3 million of product and service cost of revenue and $1.7 million for R&D contract cost of revenue.
