Hydrogenics Corporation, a leading developer and manufacturer of hydrogen generation and fuel cell products, today reported second quarter 2011 results. Results are reported in US dollars and are prepared in accordance with International Financial Reporting Standards (IFRS)1.
"Hydrogenics delivered improved revenues and consistent gross margins in the second quarter, as well as ending the quarter with a solid backlog. This improved financial performance, along with a high level of customer engagement across multiple markets, provides us with strong positioning for the balance of 2011 and beyond. In addition, we added to our liquidity position by completing the fourth and final tranche of our subscription agreement with CommScope, thereby securing an additional $2.5 million of equity," said Daryl Wilson, President and Chief Executive Officer.
Second Quarter 2011 Highlights (compared to Second Quarter 2010 unless otherwise noted)
- Closed the fourth tranche of our subscription agreement with CommScope, Inc. securing $2.5 million bringing our cash resources to $11.0 million, an increase of $2.0 million over December 31, 2010.
- Secured $5.0 million of orders for industrial gas applications, a hydrogen fuelling station and fuel cell applications, a 72% increase over the previous year.
- Order backlog of $16.9 million, the majority of which is anticipated to be delivered and recognized as revenues in 2011.
- Revenues of $3.9 million, an increase of 38%.
- Gross profit of 30% reflecting strong gross margin in OnSite Generation business unit.
- Loss from operations was $2.4 million, an increase of $1.4 million from $1.0 million primarily as a result of the prior year benefiting from $1.2 million in recoveries from a previously announced litigation settlement with American Power Conversion Corporation ("APC") and a $0.6 million increase in net research and product development expenses.
Six months ended June 30, 2011 Highlights (compared to six months ended June 30, 2010 unless otherwise noted)
- Revenues of $11.3 million, an increase of 18%.
- Gross profit of $2.5 million, a 25% increase over the prior year.
- Loss from Operations was $5.5 million, for the six months ended June 30, 2011, an increase of $0.9 million or 19% as compared to the prior year, prior to reflecting: $1.0 million of unfavourable fair value adjustments related to long term compensation costs indexed to our share price and $0.3 million of non-cash stock-based compensation costs in respect of executive stock options which were surrendered in January 2011.
About Hydrogenics
Hydrogenics Corporation (www.hydrogenics.com) is a globally recognized developer and provider of hydrogen generation and fuel cell products and services, serving the growing industrial and clean energy markets of today and tomorrow. Based in Mississauga, Ontario, Canada, Hydrogenics has operations in North America and Europe.