Hydrogenics Reports First Quarter 2011 Results

Hydrogenics Corporation (Nasdaq:HYGS - News), a leading developer and manufacturer of hydrogen generation and fuel cell products, today reported first quarter 2011 results. Results are reported in US dollars and are prepared in accordance with International Financial Reporting Standards (IFRS)1.

"Our first quarter results, with a 10% increase in revenues, strong gross profit in our Power Systems business and awards for hydrogen fuelling stations in Oslo, Norway and Istanbul, Turkey along with contracts for the delivery of nine electrolyzers for industrial gas applications meets our expectations. Additionally, we continued to advance our product development and commercialization efforts with CommScope, Inc. ("CommScope") in the first quarter, as evidenced by completing the third tranche of our subscription agreement and, thereby securing an additional $2.0 million of equity", said Daryl Wilson, President and Chief Executive Officer.

First Quarter 2011 Highlights (compared to First Quarter 2010 unless otherwise noted)

Closed the third tranche of our subscription agreement with CommScope securing $2.0 million
Secured $6.1 million of orders for industrial gas applications and a hydrogen fuelling station as well as $0.7 million of orders for fuel cell applications
Order backlog of $15.8 million, the substantial majority of which is anticipated to be delivered and recognized as revenues in 2011.
Revenues of $7.4 million, an increase of 10%
Gross profit of 19%, reflecting pricing pressure on one large OnSite Generation order booked in 2009
EBITDA2 loss, prior to reflecting $0.7 million of costs and fair value adjustments resulting from our DSU and RSU plans which are indexed to our share price and $0.3 million of non-cash stock-based compensation costs in respect of the executive stock options which were surrendered in January 2011 was $1.8 million, an improvement of $1.7 million, or 47%
Cash reserves of $10.9 million compared to $9.0 million at December 31, 2010 reflecting CommScope's $2.0 million equity investment and $0.1 million of cash provided by operating activities, partially offset by $0.2 million of capital expenditures