Welcome!

Microsoft Cloud Authors: John Basso, Pat Romanski, Liz McMillan, Glenn Rossman, Elizabeth White

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
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
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. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
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.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...