Welcome!

Microsoft Cloud Authors: Pat Romanski, Lori MacVittie, Andreas Grabner, Jim Kaskade, John Basso

News Feed Item

Ballard Reports Second Quarter 2014 Results

  • Continuing progress in all key financial metrics
  • Positioned for strong 2nd Half of 2014

VANCOUVER, July 29, 2014 /PRNewswire/ - Ballard Power Systems (NASDAQ: BLDP)(TSX: BLD) today announced its consolidated financial results for the second quarter ended June 30, 2014. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).

John Sheridan, President and CEO said, "Our Q2 results continue the performance trend established in the first quarter, with year-over-year progress in all key metrics, including a 27% increase in revenue and improvements of 3-points in gross margin, 5% in cash operating costs and 63% in Adjusted EBITDA. With this momentum and our strengthening sales pipeline we are well-positioned to deliver a strong second half of 2014, consistent with our full-year guidance."

Second Quarter 2014 Highlights

Growth (all comparisons to Q2 2013 unless otherwise noted)

  • Q2 revenue improved 27%, to $18.5 million. Q2 revenue also improved 32% from the previous quarter. Total revenue of $32.5 million for the first half of the year represents approximately 40% of expected 2014 revenue – consistent with plan.

Telecom Backup Power

  • Revenue of $3.7 million, a decrease of 12%. The Company continues to expect significant growth in the second half of the year, given the strengthening sales pipeline as well as anticipated licensing revenue from the Azure Hydrogen transaction announced in June.    
  • Update:
    • June announcement of a definitive agreement with Azure Hydrogen ("Azure") in China for a license to assemble ElectraGenTM systems in that market, with a 2014-15 value of approximately $6 million. Ballard is to be the exclusive supplier of sub-systems – including fuel cell stacks and fuel processors – and will receive royalty payments for system sales, if Azure is successful with its business plan.    
    • Strengthening sales pipeline, underpinned by:
      • Opportunities in the Asia region, including India, China, Indonesia, Myanmar, the Philippines, Japan; and
      • Opportunities in other geographic regions, including the U.S., Australia, South Africa, Europe, the Caribbean.    

Material Handling

  • Revenue of $4.6 million, an increase of 209%, driven by an increase in fuel cell stack orders from Plug Power together with $0.5 million of revenue from the license of intellectual property to M-Field Energy Corporation ("M-Field").
  • Update:
    • Continued expansion of Plug Power's order book, with the announcement of orders from Walmart for 286 GenDriveTM systems, from Central Grocers for 182 GenDriveTM systems and from Ace Hardware.

Development Stage Markets

  • Revenue of $1.8 million, a decrease of 44%, due primarily to a year-over-year reduction in Bus module shipments.
  • Update:
    • Two Bus modules were shipped in the quarter:  an FCvelocityTM-HD6 to BAE Systems for deployment in an ElDorado National bus for the University of California's Irvine campus; and an FCvelocityTM-HD7 prototype to Solaris Bus and Coach of Poland for a bus to be deployed in Hamburg, Germany.       
    • Revenue of $1.0 million was booked in relation to the China Bus module assembly licensing contract, signed in September 2013. 
    • Following the quarter, an FCvelocityTM-HD7 prototype was ordered by New Flyer Industries for delivery later this year, to be deployed in a U.S. fuel cell bus.

Engineering Services

  • Revenue of $8.4 million, an increase of 46%, reflecting the growth potential for Engineering Services.
  • Revenue in the quarter was driven by:
    • $5.4 million from the long-term contract with Volkswagen AG;
    • $1.5 million from other automotive contracts; and
    • $1.5 million from non-automotive contracts, including Bus and Backup Power activities for the China market and micro-fuel cell development for the U.S. market.  

Path to Profitability (all comparisons to Q2 2013 unless otherwise noted)

  • Gross margin of 25%, a 3-point improvement. Higher gross margin is expected in the second half of 2014, based on an expectation of increasing total revenue and an increasing proportion of licensing revenue in the product mix.
  • Cash operating costs1 of $6.7 million, an improvement of 5%, despite one-time legal and transaction costs associated with licensing contracts with United Technologies Corp., Azure and M-Field.     
  • Adjusted EBITDA1 of ($1.2) million, an improvement of 63%.
  • Net income of ($4.5) million or ($0.03) per share, improvements of 14% and 35%, respectively.
  • Cash used by operating activities of ($2.9) million, an improvement of 37%, driven by improvements in both cash operating loss as well as working capital changes.   
  • Cash reserves of $36.4 million, with zero balance outstanding on the Company's bank operating line.

2014 Business Outlook

The Company has confirmed its full year guidance for:

  • Revenue growth of approximately 30%; and
  • Approximately break-even Adjusted EBITDA.

Second Quarter 2014 Financial Highlights

(Millions of U.S. dollars)

 Three months ended June 30,

Six months ended June 30,


2014

2013

%

Improvement

2014

2013

%

Improvement

GROWTH







Revenue:







  Telecom Backup Power

$3.7

$4.3

-12%

$6.6

$10.6

-38%

  Material Handling

$4.6

$1.5

209%

$6.6

$2.4

177%

  Development Stage Markets

$1.8

$3.1

-44%

$3.5

$5.5

-38%

  Engineering Services

$8.4

$5.7

46%

$15.8

$8.4

89%

Total Revenue

$18.5

$14.6

27%

$32.5

$26.9

21%

12 Month Rolling Order Book

$44.8

$42.9





PROFITABILITY







Gross Margin

25%

22%

3-points

25%

23%

2-points

Cash Operating Costs1

$6.7

$7.1

5%

$13.0

$15.3

15%

Adjusted EBITDA1

($1.2)

($3.3)

63%

($3.0)

($7.5)

60%

Net Income (Loss)

($4.5)

($5.2)

14%

($8.3)

($13.1)

37%

Earnings Per Share

($0.03)

($0.05)

35%

($0.7)

($0.14)

51%

Normalized Net Loss1

($4.5)

($4.8)

8%

($8.1)

($11.6)

30%

Normalized Net Loss Per Share1

($0.03)

($0.05)

30%

($0.7)

($0.12)

45%

CASH







Cash Used by Operating Activities:







Cash Operating Income (Loss)

($2.3)

($3.2)

28%

($4.5)

($9.4)

52%

Working Capital Changes

($0.6)

($1.5)

57%

($5.1)

($2.3)

-120%








   Cash Used By Operating Activities

($2.9)

($4.7)

37%

($9.6)

($11.7)

18%

Cash Reserves

$36.4

$25.8

41%




Cash Reserves, Net of Operating Line

$36.4

$23.1

57%




 

For a more detailed discussion of Ballard Power Systems' second quarter 2014 results, please see the company's financial statements and management's discussion & analysis, which are available at www.ballard.com/investors, www.sedar.com and www.sec.gov/edgar.shtml.

Conference Call
Ballard will hold a conference call on Wednesday, July 30, 2014 at 8:00 a.m. PDT (11:00 a.m. EDT) to review its second quarter 2014 operating results. The live call can be accessed by dialing +1.604.638.5340. Alternatively, a live audio and slide webcast can be accessed through a link on Ballard's homepage (www.ballard.com). Following the call, the audio webcast will be archived in the Quarterly Results area of the Investor section of Ballard's website (www.ballard.com/investors).

About Ballard Power Systems
Ballard Power Systems (NASDAQ: BLDP)(TSX: BLD) provides clean energy fuel cell products enabling optimized power systems for a range of applications. Products deliver incomparable performance, durability and versatility. To learn more about Ballard, please visit www.ballard.com.

Important Cautions Regarding Forward-Looking Statements
This release contains forward-looking statements concerning projected revenue growth, product shipments, gross margin, Adjusted EBITDA, cash operating expenses and product sales. These forward-looking statements reflect Ballard's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any such statements are based on Ballard's assumptions relating to its financial forecasts and expectations regarding its product development efforts, manufacturing capacity, and market demand. For a detailed discussion of the factors and assumptions that these statements are based upon, and factors that could cause our actual results or outcomes to differ materially, please refer to Ballard's most recent management discussion & analysis. Other risks and uncertainties that may cause Ballard's actual results to be materially different include general economic and regulatory changes, detrimental reliance on third parties, successfully achieving our business plans and achieving and sustaining profitability. For a detailed discussion of these and other risk factors that could affect Ballard's future performance, please refer to Ballard's most recent Annual Information Form. These forward-looking statements are provided to enable external stakeholders to understand Ballard's expectations as at the date of this release and may not be appropriate for other purposes. Readers should not place undue reliance on these statements and Ballard assumes no obligation to update or release any revisions to them, other than as required under applicable legislation.

Endnote:

1 Cash Operating Costs measures operating expenses excluding stock based compensation expense, depreciation and amortization, restructuring charges, acquisition costs and financing charges. EBITDA measures net loss attributable to Ballard Power Systems Inc. excluding finance expense, income taxes, depreciation of property, plant and equipment, amortization of intangible assets, and goodwill impairment charges. Adjusted EBITDA adjusts EBITDA for stock based compensation expense, transactional gains and losses, asset impairment charges, finance and other income and acquisition costs. Normalized Net Loss measures net loss attributable to Ballard from continuing operations, excluding transactional gains and losses and asset impairment charges.

Note that Cash Operating Costs, EBITDA, Adjusted EBITDA and Normalized Net Loss, are non GAAP measures. Non GAAP measures do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. Ballard believes that Cash Operating Costs, EBITDA, Adjusted EBITDA and Normalized Net Loss assist investors in assessing Ballard's operating performance and liquidity. These measures should be used in addition to, and not as a substitute for, net income, cash flows and other measures of financial performance and liquidity reported in accordance with GAAP. For a reconciliation of Cash Operating Costs, EBITDA, Adjusted EBITDA and Normalized Net Loss to the Consolidated Financial Statements, please refer to Ballard's Management's Discussion & Analysis.

SOURCE Ballard Power Systems Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for s...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
"At ROHA we develop an app called Catcha. It was developed after we spent a year meeting with, talking to, interacting with senior citizens watching them use their smartphones and talking to them about how they use their smartphones so we could get to know their smartphone behavior," explained Dave Woods, Chief Innovation Officer at ROHA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.