FuelCell Energy Reports Third Quarter Results.Business Editors DANBURY Danbury (dăn`bĕr'ē, –bərē), city (1990 pop. 65,585), Fairfield co., SW Conn.; settled 1685, inc. as a city 1889. , Conn.--(BUSINESS WIRE)--Aug. 29, 2001 FuelCell Energy, Inc. (Nasdaq:FCEL) today reported revenues of $7.6 million for the third quarter ended July July: see month. 31, 2001, compared with revenues of $4.1 million in the same quarter of 2000, an increase of 85 percent. Net loss for the period was ($2.8 million) or ($0.08) per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared with a net loss of ($1.3 million) or ($0.04) in the third quarter ended July 31, 2000. For the nine months ended July 31, 2001, revenues were $19.4 million, a 54 percent increase from revenues of $12.6 million for the same period in 2000. Net loss for the nine months was ($10.6 million) or ($0.32) per basic and diluted share compared with a net loss of ($3.0 million) or ($0.11) in the previous year. Revenues increased in both the current quarter and the year to date due to a greater number of Direct FuelCell(R) (DFC DFC - A dataflow language. ["Data Flow Language DFC: Design and Implementation", S. Toshio et al, Systems and Computers in Japan, 20(6):1- 10 (Jun 1989)]. (R)) projects, including the Los Angeles Department of Water and Power The Los Angeles Department of Water and Power (LADWP) is the largest municipal utility in the United States, serving 3.9 million residents in 2006. It was founded in 1902 to deliver water and electricity supplies to residents and businesses in Los Angeles. , Mercedes-Benz  This article may be too long.Please discuss this issue on the talk page and help summarize or split the content into subarticles of an article series. , MTU (1) (Maximum Transmission Unit, Maximum Transfer Unit) The largest frame size that can be transmitted over the network. For example, an Ethernet MTU is 1,500 bytes. Messages longer than the MTU must be divided into smaller frames. , and Marubeni Marubeni Corporation (丸紅株式会社 Marubeni Kabushiki-gaisha field trials, and the Clean Coal, Coal Mine Methane methane (mĕth`ān), CH4, colorless, odorless, gaseous saturated hydrocarbon; the simplest alkane. It is less dense than air, melts at −184°C;, and boils at −161.4°C;. , Vision 21, Navy Phase II, and King County, Washington “King County” redirects here. For other uses, see King County (disambiguation). King County is located in the U.S. state of Washington. The population in the 2000 census was 1,737,034 and in 2006 was an estimated 1,835,300. contracts. The net loss for both the current quarter and the year to date periods reflect increased activities on our field trials and cost shared contracts, and increased sales and marketing activity. The Company continues to move forward its fuel cell commercialization program. The net increase in cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments of $241.3 million and $225.5 million in the current quarter and the nine-month period respectively, reflect the cash proceeds from the June June: see month. 2001 offering, and the $10 million equity investment by Marubeni. We continue to make capital expenditures for the planned expansion to 50MW of production capacity and incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. operating costs operating costs npl → gastos mpl operacionales related to field trials and contracts. "The most recent quarter was one of progress as we continued to position the company for commercial launch," said Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. D. Leitman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "On the product side, the shipments of three 250 kW units, including two to customers and one to support the DFC/Turbine project, were important milestones. Financially, the stock offering in June solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our fiscal base and in this quarter we have added 36 new employees as we move forward with our manufacturing and marketing expansion." Recent Events include: -- Completion of a $241 million stock offering -- Significant expansion of our alliance with Marubeni to market DFC power plants in Asia -- Shipment of DFC power plants to customers in Alabama and Los Angeles, and DFC components to MTU -- Continued progress on a 26 MW proposal by CRRA/Enron to the State of Connecticut -- Start-up of combined DFC/Turbine power plant in Danbury -- Siting of a DFC power plant at the University of Connecticut Completion of a $241 million stock offering In June, the company sold 3.45 million shares of stock (6.9 million split adjusted) for net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $241.2 million dollars. The proceeds from the offering are targeted to build manufacturing capacity and support of the company's commercialization plans. FuelCell Energy expects that these proceeds will fund the Company to profitability. Alliance with Marubeni to market DFC power plants in Asia FuelCell Energy and the Marubeni Corporation formed a strategic alliance to generate at least 45 MW in Direct FuelCell(R) (DFC(R)) power plant orders, while providing the necessary infrastructure for successfully launching the product in Japan and Asia. The agreement calls for cooperation on developing and marketing products as well as equity investments in FuelCell Energy by Marubeni. Marubeni is uniquely positioned to penetrate the Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and and Asian markets having chosen the DFC as its first distributed generation Distributed generation generates electricity from many small energy sources. It has also been called also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or product. Shipment of DFC power plants to customers in Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). and Los Angeles DFC power plants were shipped during the quarter to the Mercedes-Benz facility in Alabama and to the Los Angeles Department of Water and Power to be sited at its headquarters. Project participants in the Mercedes field trial include Southern Company, Alabama Municipal Electric Authority, Alabama Power, and Mercedes-Benz U.S. International Mercedes-Benz U.S. International (MBUSI) is a Daimler AG Mercedes-Benz automobile manufacturing plant in Vance, Alabama. It is located about 34 miles west of Birmingham and about 19 miles east of Tuscaloosa. , Inc. Our plans for these units include continued field trial testing and operation in order to incorporate this field experience into our market entry products. Continued progress on 26 MW proposal by Enron Enron A U.S. energy-trading and utilities company that housed one of the biggest accounting frauds in history. Enron's executives employed accounting practices that falsely inflated the company's revenues, which, at the height of the scandal, made the firm become the seventh The Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). Department of Public Utility Control (DPUC DPUC Department of Public Utility Control (Connecticut) ) continued its evaluation of a proposal submitted by Enron and the Connecticut Resources Recovery Authority (CRRA CRRA California Resource Recovery Association CRRA Constant Relative Risk-Aversion (finance) CRRA Capabilities Review and Risk Assessment (USAF) CRRA Centre Regional Recreation Authority ) to supply 26 MW of FuelCell Energy DFC power plants to be sited at CRRA locations in the state. A draft decision by the DPUC is expected in the near term. Start-up Start-up The earliest stage of a new business venture. of combined DFC/Turbine power plant The company recently began operation of its DFC/T(TM) power plant that integrates a 250 kW DFC with a Capstone microturbine. This proof-of-concept demonstration will provide information to design a 40 MW DFC/T power plant that can approach the 75 percent efficiency goal as specified by the DOE Vision 21 program, as well as serve as a platform for a high efficiency DFC/T in smaller sizes for retail power applications. Contract for 250 kW unit sited at the University of Connecticut The University of Connecticut is the State of Connecticut's land-grant university. It was founded in 1881 and serves more than 27,000 students on its six campuses, including more than 9,000 graduate students in multiple programs. UConn's main campus is in Storrs, Connecticut. The State of Connecticut and FuelCell Energy finalized See finalization. a $1.25 million contract for a 250 kW DFC power plant to be sited at the University of Connecticut. Announced by Connecticut Governor John Rowland earlier this year, the power plant is scheduled for delivery in 2002. Manufacturing Update The company's manufacturing facility continues to produce fuel cells for ongoing demonstration projects while adding machinery and personnel needed to reach 50 MW of production capacity. New equipment added during the quarter includes an additional high-speed tape caster, which is used for producing fuel cell matrices. Manufacturing staffing has doubled since October 31, 2000. Focus through 2002 -- Complete build-out of manufacturing capacity to 50 MW and begin next phase of expansion -- Incorporate field trial experience into market entry product design -- Focus technology development on maturation maturation /mat·u·ra·tion/ (mach-u-ra´shun) 1. the process of becoming mature. 2. attainment of emotional and intellectual maturity. 3. of DFC fuel cell, completion of DFC/Turbine testing and 40MW plant design, and DFC diesel and marine products -- Expand alliance partner network -- Target key market segments to secure commercial orders A conference call is scheduled for 10:00 A.M. on August 29, 2001 E.D.T. to review results and discuss the company outlook. Listeners can gain access to the call live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the by clicking on the Vcall link on the company's homepage at www.fce.com. A playback Playback could mean:
About Direct FuelCells(R) Direct FuelCells generate electricity with no combustion combustion, rapid chemical reaction of two or more substances with a characteristic liberation of heat and light; it is commonly called burning. The burning of a fuel (e.g., wood, coal, oil, or natural gas) in air is a familiar example of combustion. . They are, in effect like large, continuously operating batteries that generate electricity as long as fuel, such as natural gas, is supplied. Since the fuel is not burned, there is no pollution commonly associated with the combustion of fossil fuels fossil fuel: see energy, sources of; fuel. fossil fuel Any of a class of materials of biologic origin occurring within the Earth's crust that can be used as a source of energy. Fossil fuels include coal, petroleum, and natural gas. . Also, the high efficiency leads to more electric power from less fuel and with less carbon dioxide carbon dioxide, chemical compound, CO2, a colorless, odorless, tasteless gas that is about one and one-half times as dense as air under ordinary conditions of temperature and pressure. emissions. About FuelCell Energy, Inc. FuelCell Energy, Inc. (www.fuelcellenergy.com) is a world-recognized leader for development and commercialization of high efficiency fuel cells for electric power generation. The Company's Direct FuelCell(R) (DFC(R)) technology eliminates external fuel processing to extract hydrogen from a hydrocarbon hydrocarbon (hī'drōkär`bən), any organic compound composed solely of the elements hydrogen and carbon. The hydrocarbons differ both in the total number of carbon and hydrogen atoms in their molecules and in the proportion of hydrogen fuel. This results in a product whose cost, combined with high efficiency, simplicity and reliability, results in product advantages for stationary Stationary can mean:
This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including statements regarding the Company's plans and expectations regarding the development and commercialization of its fuel cell technology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that commercial field trials of the Company's products will not occur when anticipated, general risks associated with product development, manufacturing, changes in the utility regulatory environment, potential volatility of energy prices, rapid technological change, and competition, as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which any such statement is based.
FUELCELL ENERGY, INC.
Consolidated Statements of Loss
(Dollars in thousands, except per share amounts)
(unaudited)
Three months ended
----------------------
July 31, July 31,
2001 2000
----------- ---------
Revenues:
Research and development contracts $ 5,370 3,963
Product sales and revenues 2,252 149
----------- ---------
Total revenues 7,622 4,112
Costs and expenses:
Cost of product sales and revenues 3,724 904
Administrative and selling expenses 2,097 1,684
Depreciation 416 346
Research and development (a) 5,705 3,470
----------- ---------
Total costs and expenses 11,942 6,404
----------- ---------
Loss operations (4,320) (2,292)
License fee income, net 68 68
Interest Expense (27) (36)
Interest Income and other 1,514 953
----------- ---------
Loss before taxes (2,765) (1,307)
Tax provision -- --
----------- ---------
Net loss $ (2,765) (1,307)
=========== =========
Basic and diluted loss per share $ (0.08) (0.04)
=========== =========
Basic and diluted shares outstanding 35,235,675 30,735,228
=========== ==========
(a) Includes costs of:
Research and development under contracts $ 4,853 3,142
Research and development costs 852 328
----------- ---------
$ 5,705 3,470
----------- ---------
FUELCELL ENERGY, INC.
Consolidated Statements of Loss
(Dollars in thousands, except per share amounts)
(unaudited)
Nine months ended
----------------------
July 31, July 31,
2001 2000
----------- ---------
Revenues:
Research and development contracts $ 14,589 11,450
Product sales and revenues 4,859 1,198
----------- ---------
Total revenues 19,448 12,648
Costs and expenses:
Cost of product sales and revenues 11,471 2,320
Administrative and selling expenses 6,626 4,128
Depreciation 1,170 1,111
Research and development (a) 14,365 9,356
----------- ---------
Total costs and expenses 33,632 16,915
----------- ---------
Loss operations (14,184) (4,267)
License fee income, net 203 198
Interest Expense (88) (106)
Interest Income and other 3,439 1,167
----------- ---------
Loss before taxes (10,630) (3,008)
Tax provision - 2
----------- ---------
Net loss $ (10,630) (3,010)
=========== =========
Basic and diluted loss per share $ (0.32) (0.11)
=========== =========
Basic and diluted shares outstanding 32,793,871 27,415,072
=========== =========
(a) Includes costs of:
Research and development under contracts $ 12,030 7,765
Research and development costs 2,335 1,591
----------- ---------
$ 14,365 9,356
----------- ---------
FUELCELL ENERGY, INC.
Consolidated Condensed Balance Sheets
(Dollars in thousands, except per share amounts)
(unaudited)
July 31, October 31,
2001 2000
----------- ---------
ASSETS:
Current assets:
Cash and short-term investments $ 300,259 $ 74,754
Accounts receivable 6,334 3,459
Inventories 3,950 305
Deferred income taxes 117 291
Other current assets 787 596
----------- ---------
Total current assets 311,447 79,405
Property, plant and equipment, net 21,165 9,794
Other assets, net 1,653 1,829
----------- ---------
Total assets $ 334,265 $ 91,028
=========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt $ 175 $ 1,625
Accounts payable 2,156 1,626
Accrued liabilities 5,322 3,557
Deferred license fee income 113 38
Customer advances 672 742
----------- ---------
Total current liabilities 8,438 7,588
Long-Term Debt 1,252 -
----------- ---------
Total liabilities 9,690 7,588
Minority interest - 189
----------- ---------
Shareholders' equity:
Common stock 4 3
Additional paid-in capital 338,987 87,034
Accumulated deficit (14,416) (3,786)
----------- ---------
Total shareholders' equity 324,575 83,251
----------- ---------
Total liabilities and shareholders' equity $ 334,265 $ 91,028
=========== =========
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