Ballard Reports Second Quarter 2011 Results

Ballard Power Systems today announced its consolidated financial results for the second quarter ended June 30, 2011. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).1

John Sheridan, President and CEO said, "Ballard's second quarter results demonstrate...

continued progress in both top-line and bottom-line performance, 'on track' with our plan and consistent with full-year guidance. Revenue grew 23% over second quarter last year and was up 26% on a year-to-date basis. Adjusted EBITDA improved 26% over second quarter last year and 15% year-to-date."

Second Quarter 2011 Highlights

Growth (comparisons are to 2010)

Revenue of $19.1 million in Q2 and $34.4 million year-to-date, increases of 23% and 26%, respectively.
Reflects strong growth in fuel cell products of 36% in the quarter and 38% year-to-date.
Product shipments of 820 units in Q2 and 1,318 units year-to-date, growth of 4% and 9%.
Tempered by decrease in material handling shipments in Q2 (down 91%).
Strong increases in Q2 in backup power (up 71%) and distributed generation.
Twelve-month rolling order book of $36.4 million, compared with $31.0 million on June 30, 2010.
Key commercial announcements:
In April, sale of a 1-megawatt CLEARgenTM system to provide power and heat at the Toyota Sales U.S.A., Inc. sales and marketing headquarters campus in Torrance, CA.
In July, purchase agreement with Plug for minimum 3,250 fuel cell stacks through 2012, for use in the material handling market, with minimum monthly take-or-pay commitment levels.
Also in July, Dantherm Power, Ballard's backup power systems company, signed a collaboration agreement with Delta Power Solutions (India), to market clean energy power systems in the Indian telecommunications market.

Path to Profitability (comparisons are to 2010)

Gross margin of 17% in Q2 and 17% year-to-date, up from 9% and 11%, respectively.
Cash operating costs2 of $10.7 million in Q2 and $21.4 million year-to-date, an improvement of 5% year-to-date despite a $1.5 million negative foreign exchange impact.
Key contracts will enable further cost reductions going forward: SDTC distributed generation contract of approximately C$7 million to offset development costs over the 2011-13 period; and Daimler sub-lease generating cost savings of approximately $1 million per year.
Adjusted EBITDA3 of ($6.1) million in Q2 and ($13.5) million year-to-date, an improvement of 26% and 15%, despite the $1.5 million year-to-date negative foreign exchange impact.
Net loss of ($8.7) million in Q2 and ($18.9) million year-to-date, an improvement from ($10.7) million and ($17.2) million over the same periods last year.

2011 Business Outlook

Revenue
Ballard confirms its full-year guidance for revenue growth in excess of 30%. As previously noted, the company expects revenue to be weighted toward second half of the year, with growth driven by accelerating momentum in all four Fuel Cell Product markets, particularly bus.

Adjusted EBITDA1
Ballard confirms its full-year guidance for Adjusted EBITDA improvement in excess of 40%. This improvement trajectory is expected to be supported by the revenue growth outlined above, a shift in mix toward higher margin products and continuing reductions in both product costs and cash operating cost base.

About Ballard Power Systems
Ballard Power Systems (TSX:BLD.to - News) (NASDAQ:BLDP - News) provides clean energy fuel cell products enabling optimized power systems for a range of applications. Products are based on proprietary esencia™ technology, ensuring incomparable performance, durability and versatility. To learn more about Ballard, please visit www.ballard.com.