LATHAM, N.Y., May 12, 2011 (GLOBE NEWSWIRE) -- Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, today reported its financial results for the first quarter of 2011. This new year marks a fresh start for Plug Power's scope of business. Unlike years past, 2011 marks the first year the company is entirely committed to its GenDrive® product line. As the only hydrogen fuel cell manufacturer to offer customers a complete product suite enabling full-fleet conversions, Plug Power has captured over 85 percent of the fuel cell-powered material handling market today.
Plug Power saw its most successful quarter in the company's history during the first quarter of 2011, primarily based on the unprecedented number of commercial orders it received. Order ramp-up, year over year, has legitimized the GenDrive business for Plug Power, and helped illustrate the commercial traction driving the company toward profitability. Plug Power closed out 2010 with a total of 543 GenDrive orders. In just the first quarter of 2011 alone, the company has already exceeded full year totals for prior years, accumulating 555 GenDrive unit orders.
Plug Power's current backlog of 938 orders represents approximately $19M in future revenue; the company expects roughly 65 percent of these orders to ship throughout the remainder of 2011. With this increase in orders, and engineering improvements that utilize common components across product lines, Plug Power expects to drive down material costs by 30 to 40 percent. Implementation is currently underway and Plug Power expects these improvements to begin to impact its financial results by the end of 2011.
Plug Power's customer list continues to grow with new adopters and repeat customers who are implementing GenDrive-powered fleets at multiple facilities within their organization. Specifically, Plug Power has seen an upswing in the food distribution market.
"The continued commercial growth of our GenDrive business is a result of the business-altering benefits experienced by our customers in the material handling space," said Andy Marsh, CEO at Plug Power. "Early adopter customers are now realizing results, and speaking to superior performance and reliability of hydrogen fuel cells in their operations."
Net loss for the first quarter of 2011 was $7.2 million, or $0.05 per share on a basic and diluted basis. This compares with a net loss of $10.6 million, or $0.08 per share, for the first quarter of 2010.
Total revenue for the first quarter of 2011 was $6.0 million, comprised of $5.0 million for product and service revenue, $0.8 million for research and development (R&D) contract revenue, and $0.2 million for licensed technology revenue. This compares to total revenue of $4.4 million in the first quarter of 2010, which was comprised of $3.2 million of product and service revenue and $1.2 million of R&D contract revenue.
The Company shipped 144 units during the first quarter of 2011 compared to 104 units in the first quarter of 2010.
Total cost of revenue for the first quarter of 2011 was $8.0 million, comprised of $6.7 million for product and service cost of revenue and $1.3 million for R&D contract cost of revenue. This compares to total cost of revenue of $5.2 million in the first quarter of 2010, which was comprised of $3.3 million of product and service cost of revenue and $1.9 million for R&D contract cost of revenue.
R&D expenses for the first quarter of 2011 were $1.1 million compared with $5.5 million for the first quarter of 2010. The overall decline in R&D expenses is related to our corporate restructuring plan, and our transition from a development stage enterprise focused on research and development to a company focused on the commercial production of our products.
Selling, general and administrative (SG&A) expenses were $3.6 million for the first quarter of 2011 compared with $3.9 million for the first quarter of 2010. Additionally, $0.6 million was expensed for amortization of intangible assets during the first quarter of 2011 compared to $0.6 million for the first quarter of 2010.
Cash and Liquidity
Net cash used in operating activities for the first quarter of 2011 was $7.2 million. On March 31, 2011, Plug Power had cash, cash equivalents and available-for-sale securities of $13.0 million and net working capital of $17.2 million. This compares to $21.4 million and $23.7 million, respectively, at December 31, 2010.
The accompanying financial statements and reconciliation tables provide additional information on the Company's year-to-date performance as it relates to milestones previously announced.
Conference Call and 10-Q Filing
Plug Power has scheduled a conference call on May 25, 2011 at 10:00 am ET to review the Company's results for the first quarter of 2011. 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 () and selecting the conference call link on the home page. A playback will be available online for a period following the call.
Plug Power will file its Quarterly Form 10-Q on or before May 13, 2011.
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 1,200 GenDrive units shipped to material handling customers, accumulating over 2.5 million hours of runtime, Plug Power manufactures tomorrow's incumbent power solutions today. Visit us at www.plugpower.com.
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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, reductions in material and product costs, improvements in gross margin, and unit orders and shipments. 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, but not limited to: the risk that we continue to incur losses and might never achieve or maintain profitability, the risk that the additional capital we expect we will need to raise to fund our operations beyond the first quarter of 2012 may not be available; our lack of extensive experience in manufacturing and marketing products may impact our ability to manufacture and market products on a profitable and large-scale commercial basis; the risk that unit orders will not ship, be installed and/or converted to revenue, in whole or in part; the risk that pending orders may not convert to purchase orders, in whole or in part; the risk that our continued failure to comply with NASDAQ's listing standards may severely limit our ability to raise additional capital; the cost and timing of developing, marketing and selling our products and our ability to raise the necessary capital to fund such 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 systems; 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 our GenDrive systems; competitive factors, such as price competition and competition from other traditional and alternative energy companies; our ability to protect our intellectual property; the cost of complying with current and future federal, state and international 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, 2010, filed with the Securities and Exchange Commission ("SEC") on March 31, 2011, 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.
CONTACT: Media Contact: Reid Hislop Plug Power Inc. Phone: (518) 782-7700 ext. 1360 Investor Relations Contact: Cathy Yudzevich Plug Power Inc. Phone: (518) 782-7700 ext. 1448