updated 11/8/2010 7:15:35 AM ET 2010-11-08T12:15:35

LATHAM, N.Y., Nov. 8, 2010 (GLOBE NEWSWIRE) -- Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, today reported its financial results for the third quarter of 2010. The Company had a net loss of $9.3 million on $5.8 million in revenue.

For the quarter, the company shipped 170 GenDrive™ systems to its growing portfolio of commercial customers in the North American material handling industry. Plug Power is experiencing its most successful year in shipping product. In fact, the year to date total of 371 units shipped already exceeds previous full year totals.

"Plug Power has grown tremendously its GenDrive business during 2010, especially in the third quarter of the year. But the pace at which our accomplishments have been realized is at a slower rate then we had expected," said Andy Marsh, CEO at Plug Power. "This is not atypical for a new, emerging technology, as we ramp up commercial activity. Our sales pipeline is still strong; customers continue to be fully engaged in the buying process. Our challenge continues to be predicting the timing of these deals in this new market."

During the third quarter, Plug Power saw continued growth and commercialization in the North American material handling market. Trials continue with a significant number of potential customers and the Company presently has planned an additional seven trials at customer facilities. The lift truck fleets of these seven customers comprise over 150 distribution centers with more than 20,000 lift trucks.

Most notably, Plug Power celebrated alongside several customers as GenDrive-powered lift truck fleets were deployed. Customer fleets include Sysco Houston, United Natural Foods, Inc. (UNFI), BMW, Walmart Canada and FedEx Freight. Mr. Marsh commented, "For Plug Power, the ultimate success is seeing a customer deploy our GenDrive products into operation. It's at that point that our mission of improving the business operations of our customers is fully realized."

Financial Results

Net loss for the third quarter of 2010 was $9.3 million, or $0.07 per share on a basic and diluted basis. This compares with a net loss of $10.2 million, or $0.08 per share, for the third quarter of 2009.

Total revenue for the third quarter of 2010 was $5.8 million, comprised of $4.8 million for product and service revenue and $1.0 million for research and development (R&D) contract revenue. This compares to total revenue of $2.5 million in the third quarter of 2009, which was comprised of $1.0 million for product and service revenue and $1.5 million for R&D contract revenue.

Effective April 1, 2010, the Company adopted ASU No. 2009-13 on Topic 605, Revenue Recognition– Multiple Deliverable Revenue Arrangements retroactive to January 1, 2010. As a result of implementing ASU No. 2009-13, the Company recognized approximately $3.6 million and $6.3 million of revenue in the third quarter and year to date 2010, respectively, that would have been recorded as deferred revenue under the previous guidance for multiple-element revenue arrangements.

The Company shipped 170 units of its fuel cell products during the third quarter of 2010 compared to 6 units shipped in the third quarter of 2009.

Total cost of revenue for the third quarter of 2010 was $9.1 million, comprised of $7.3 million for product and service cost of revenue and $1.7 million for R&D contract cost of revenue. This compares to total cost of revenue of $4.1 million in the third quarter of 2009, which was comprised of $1.3 million for cost of product and service revenue and $2.8 million for R&D contract cost of revenue.

R&D expenses for the third quarter of 2010 were $2.1 million compared with $4.4 million for the third quarter of 2009.

Selling, general and administrative (SG&A) expenses were $3.4 million for the third quarter of 2010 compared with $4.0 million for the third quarter of 2009. Additionally, $0.6 million was expensed for amortization of intangible assets during the third quarter of 2010 compared to $0.5 million for the third quarter of 2009.

Cash and Liquidity

Net cash used in operating activities for the third quarter of 2010 was $15.0 million. On September 30, 2010, Plug Power had cash, cash equivalents and available-for-sale securities of $20.7 million and net working capital of $26.0 million. This compares to $62.5 million and $60.0 million, respectively, at December 31, 2009.

The accompanying financial statements and reconciliation tables provide additional information on the Company's year-to-date performance as it relates to the full year 2010 milestones previously announced.

Conference Call

Plug Power has scheduled a conference call today at 10:00 am ET to review the company's results for the third quarter of 2010. Interested parties are invited to listen to the conference call by calling 877.407.8291 or 201.689.8345 for international participants.

The webcast can be accessed by going directly to the Plug Power Web site ( www.plugpower.com ) and selecting the conference call link on the home page. A playback of the call will be available online for a period following the call.

About Plug Power Inc.

The architects of modern fuel cell technology, Plug Power revolutionized the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders forged the path for our key accounts, including Wegmans, Whole Foods, and FedEx Freight. With more than 1,000 units in the field and over 1.5 million hours of runtime, Plug Power manufactures tomorrow's incumbent power solutions today. Visit us at www.plugpower.com.

The Plug Power Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4446

Plug Power Inc. Safe Harbor Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to expectations regarding revenues and product orders for 2010. These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, any of which are difficult to predict, are beyond our control and that may cause our actual results to differ materially from the expectations in our forward-looking statements including statements regarding the risk that unit orders will not ship, be installed and/or convert to revenue, in whole or in part; the cost and timing of developing our products and our ability to raise the necessary capital to fund such development costs; the ability to achieve the forecasted gross margin on the sale of our products; the actual net cash used for operating expenses may exceed the projected net cash for operating expenses; the cost and availability of fuel and fueling infrastructures for our products; market acceptance of our GenDrive system; our ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of components and parts for our products; our ability to develop commercially viable products; our ability to reduce product and manufacturing costs; our ability to successfully expand our product lines; our ability to improve system reliability for GenDrive; competitive factors, such as price competition and competition from other traditional and alternative energy companies; our ability to manufacture products on a large-scale commercial basis; our ability to protect our intellectual property; the cost of complying with current and future governmental regulations; and other risks and uncertainties discussed under "Item IA-Risk Factors" in our annual report on Form 10-K for the fiscal year ended December 31, 2009, filed with the Securities and Exchange Commission ("SEC") on March 16, 2010, and the reports we file from time to time with the SEC. Plug Power does not intend to, and undertakes no duty to update any forward-looking statements as a result of new information or future events.

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