FuelCell Energy Inc. Reports Operating Results (10-Q)
Fuelcell Energy Inc. has a market cap of $240.1 million; its shares were traded at around $1.949 with and P/S ratio of 3.44.
Highlight of Business Operations: Total revenues for the three months ended January 31, 2011 increased $13.5 million, or 92 percent to $28.1 million from $14.6 million during the same period last year. Total cost of revenues for the three months ended January 31, 2011 increased $10.3 million, or 51 percent to $30.4 million from $20.1 million during the same period last year. A discussion of the changes product sales and revenues and research and development contracts follows.
Product sales and revenues increased $13.0 million, or 101 percent in the first quarter 2011 to $25.8 million compared to $12.8 million for the prior year period. Product sales and revenues for the first quarter of 2011 included $20.4 of power plants, fuel cell modules, and fuel cell power plant components, $2.5 million of revenue primarily from the design and delivery of capital equipment to POSCO Power for their fuel cell module assembly facility as well as construction and installation services, and $2.9 million of revenue from service and power purchase agreements.
Total product sales and service backlog as of January 31, 2011 was $156.9 million compared to $84.1 million as of January 31, 2010. Product order backlog was $78.9 million and $58.3 million as of January 31, 2011 and 2010, respectively. Product backlog at the end of the quarter includes 26.5 megawatts (MW) of power plants and fuel cell component kits as well as orders for parts and work associated with a commercial joint development agreement with POSCO Power for a small scale DFC power plant for the commercial building market. Backlog for long-term service agreements was $78.0 million and $25.8 million as of January 31, 2011 and 2010, respectively.
Research and development contract revenue increased $0.5 million to $2.3 million for the three months ended January 31, 2011 compared to $1.8 million for the same period in 2010. Cost of research and development contracts increased $0.2 million to $2.3 million for the three months ended January 31, 2011 compared to $2.1 million during the first quarter of 2010. The increase in revenue was due to increased research activities over the prior period primarily related to the solid oxide fuel cell development program with the U.S. Department of Energy (DOE).
Cash, cash equivalents, and investments in U.S. treasuries totaled $70.2 million as of January 31, 2011 compared to $54.6 million as of October 31, 2010. Net use of cash, cash equivalents and investments for the first quarter was $3.2 million compared to net use of $7.2 million in the first quarter of 2010, excluding the net proceeds of $17.8 million from the registered direct offering of common stock and revolver borrowings of $1.0 million. Strong cash receipts from progress payments for U.S. orders combined with the favorable impact of improved product margins resulted in lower cash utilization during the first quarter of 2011 compared to the prior year quarter total of $7.2 million.
Investing Activities Cash used in investing activities was $10.2 million during the first quarter of 2011 compared to net cash used in investing activities of $5.7 million during the first quarter of 2010. The increase of $4.5 million was mainly due to the net purchase of U.S treasuries during the first quarter 2011 of $10.0 million compared to a net purchase of U.S. treasuries of $5.1 million during the first quarter 2010.
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