Proton Energy Announces First-Quarter 2003 Results

May 05, 2003 by Jeff Shepard

Proton Energy Systems Inc. (Wallingford, CT), a hydrogen generator and regenerative fuel cell company, announced results for the first quarter ended March 31, 2003. Revenues for the first quarter ended March 31, 2003, were $173,000, compared to revenues of $938,000 for the same period last year.

Net loss attributable to common shareholders for the first quarter of 2003 was $4,650,000, or $0.14 per share, compared to $2,263,000, or $0.07 per share, for the comparable 2002 period. The change in net loss per share is primarily due to increases in selling, general and administrative expense, a decrease in interest income resulting from decreased cash and marketable securities balances, as well as lower average interest rates and decreased gross margins.

Proton's Chief Operating Officer Larry Sweet commented, "We are very encouraged with positive trends in our commercial hydrogen generator business. We increased cell stack production rates by 40%, to seven units per week. We are on track in retrofitting field units with replacement stacks consistent with the existing cell stack reserve. In April 2003, we announced that we were accepting new customer orders for third-quarter 2003 delivery, and already booked orders for eight units in addition to our prior backlog."