Ballard Power Systems revenue declines by $6.4 million in Q3

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Ballard Power Systems revenue declines by $6.4 million in Q3

Greentech Lead Canada: Ballard Power Systems, a provider
of clean energy hydrogen fuel cells, has reported revenue of $14.2 million in
Q3, representing a decline of $6.4 million; and $38.0 million year-to-date, a
decline of $17.0 million.

John Sheridan, President and CEO said, “Weak sales and revenue
continued through the third quarter, against the backdrop of a challenging
economy. As reflected in our revised guidance, supported by a recent
strengthening in order activity, we expect stronger Q4 revenue. Also, we expect
continuation of the improving trajectories in cash operating expense and cash
flow.”
Revenue reflects reductions in fuel cell products and material products, along
with the 2011 wind down of contract manufacturing.  Within fuel cell
products there are signs of increasing sales momentum, particularly in the
communications backup power segment. 

Adjusting for contract manufacturing, which wound down in
Q3 2011, total revenue increased $0.5 million or 1 percent year-to-date
and Fuel Cell Product revenue decreased $0.4 million or 4 percent in the
quarter and increased $5.9 million or 28 percent year-to-date. 

Fuel cell stack shipments were 876 units in Q3, a
decrease of 13 percent and 2,241 units year-to-date, a decrease of 4
percent. 

One of the recent commercial developments from the
company includes progress in relation to acquisition of key fuel cell assets
from IdaTech for the communications backup power market including
purchase orders from Cascadiant, Inala Technologies, PPA and other
distributors, and total shipments of more than 150
ElectraGenTM systems. 

Ballard Power Systems also signed an ESA with First
Element Energy for provision of FCgenTM-1020ACS fuel cell stacks to be used in
communications backup power systems. It received confirmation of
funding support from the European Joint Technology Initiative (JTI) for a 1
megawatt (MW) ClearGen distributed generation system to be deployed with a
major gas supplier. 

In another recent development, the company completed
commissioning of a 1MW ClearGen distributed generation system at the Toyota
headquarters office campus  in Torrance, California. 

The company has adjusted guidance for full year revenue downwards to
approximately $60 million, based on a preliminary estimate of Q3 revenue
together with the Company’s updated outlook for Q4. Adjusting for the absence
of contract manufacturing in 2012 versus 2011, revised guidance represents
year-over-year growth in revenue of 3 percent, and 19 percent in the Fuel Cell
Product segment. 

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