FuelCell Energy Inc. Reports Operating Results (10-Q)
Fuelcell Energy Inc. has a market cap of $174 million; its shares were traded at around $2.06 with and P/S ratio of 2. Fuelcell Energy Inc. had an annual average earning growth of 12.6% over the past 10 years.FCEL is in the portfolios of Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations: Total revenues for the three months ended April 30, 2010 decreased $6.3 million, or 27 percent to $16.6 million from $22.9 million during the same period last year. Total cost of revenues for the three months ended April 30, 2010 decreased $9.1 million, or 29 percent to $22.4 million from $31.5 million during the same period last year.
Product sales and revenues declined $6.3 million, or 33 percent in the second quarter 2010 to $13.0 million compared to $19.3 million for the second quarter 2009. Product revenue totals were consistent with the first quarter total of $12.8 million. Compared to the prior year quarter, revenues are down as product mix has transitioned to being primarily composed of stack modules sold to POSCO Power, FuelCell Energys manufacturing and distribution partner in South Korea, compared to complete power plants sold in the prior year. Partially offsetting this decline was higher revenue due to an increased number of long-term service agreements (LTSAs) resulting from sales of service agreements on power plant installations in South Korea. Total product sales and service backlog as of April 30, 2010, was $75.5 million which includes $27.4 million related to LTSAs. This compares to $59.2 million as of April 30, 2009.
Total revenues for the six months ended April 30, 2010 decreased $13.4 million, or 30 percent to $31.2 million from $44.6 million during the same period last year. Total cost of revenues for the six months ended April 30, 2010 decreased $20.1 million, or 32 percent to $42.5 million from $62.6 million during the same period last year.
Research and development contract revenue decreased $0.9 million to $5.4 million in the six months ended April 30, 2010 compared to $6.2 million for the six months ended April 30, 2009. Cost of research and development contracts increased $0.3 million to $5.4 million in the six months ended April 30, 2010 compared to $5.1 million in the six months ended April 30, 2009. The decline in revenue was primarily due to completion of the Vision 21 and Ship Service fuel cell contracts with the U.S. Department of Energy (DOE) and U.S. Navy, respectively. The increase in cost of research and development contracts resulted from the impact of different cost-shares on our contracts and different levels of activity between our contracts for these periods.
For the six months ended April 30, 2010 and 2009, net loss to common shareholders was $32.1 million and $40.6 million, respectively and loss per common share was $(0.38) and $(0.59), respectively.
Cash, cash equivalents, and investments in U.S. treasuries totaled $43.8 million as of April 30, 2010 compared to $64.8 million as of October 31, 2009. Net cash and investments used during the first six months of 2010 was $21.1 million compared to $44.5 million during the first six months of 2009. Cash use improved over the prior year period on increased customer milestone payments and lower overall product and operating costs.
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