Welcome!

Microsoft Cloud Authors: Pat Romanski, Srinivasan Sundara Rajan, Glenn Rossman, Janakiram MSV, Steven Mandel

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
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
SYS-CON Events announced today that Sheng Liang to Keynote at SYS-CON's 19th Cloud Expo, which will take place on November 1-3, 2016 at the Santa Clara Convention Center in Santa Clara, California.
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
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...
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
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 ...
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...