Plug Power Reports First-Quarter Financial Results

May 10, 2000 by Jeff Shepard

Revenues for the first quarter of 2000 were $2.9 million for Plug Power Inc. (Latham, NY). This figure compares to first-quarter 1999 results of $1.7 million. Net loss for the first quarter of 2000 was $17.2 million, or $0.40 loss per diluted share, as compared to $6.5 million, or $0.32 diluted loss per share, for the first quarter ending March 31, 1999.

"This was an extremely busy quarter for the Plug Power team," said Gary Mittleman, Plug Power president and CEO. "We completed the acquisition of intellectual property related to fuel processing from Gastec, signed an agreement with Valliant to develop the next generation of fuel cell heating appliances, acquired a 28-percent interest in Advanced Energy Systems to enhance our power electronics technology, and formed a strategic alliance with Axiva to develop the next-generation membrane electrode assembly."

The current quarter loss includes a one-time charge of $5.0 million for the write-off of in-process research and development related to the acquisition of intellectual property and certain other assets acquired from Gastec during the quarter. The current quarter also includes a charge of $0.6 million for amortization related to the portion of the Gastec purchase price capitalized and recorded on the balance sheet.

The capitalized amount of $9.6 million will be amortized through a charge to operations over the next five quarters. Without the Gastec acquisition-related charges, the loss for the first quarter of 2000 would have been $11.7 million, or $0.27 diluted loss per share.

Weighted average shares outstanding at the end of the first quarter 2000 increased to 43 million shares from 20.1 million at the end of the first quarter 1999. The increase was primarily due to the October 1999 initial public offering of 6.8 million shares of common stock and the issuance of 9.2 million shares of common stock as a result of the exercise of outstanding warrants and other purchase rights at the time of the initial public offering.

During the first quarter, Plug Power produced 22 fuel cell systems for both laboratory and field testing, and now has a total of 17 systems installed in the field and being fueled by natural gas and providing power to houses and buildings. These fuel cell systems are located on Long Island; in Michigan; and in the greater Albany, New York area. Five of them are powering homes while the other 12 are providing electricity to buildings.

"We are continuing to ramp up our production activities in order to produce 500 precommercial fuel cell systems by the year-end 2000," said Mittleman.