FuelCell Energy Inc. (FCEL) stock leaps on great Q3 figures
Posted on: September 7th, 2011Written by:
FuelCell Energy Inc. (Nasdaq: FCEL) sprang in price 20.4% Wednesday to $1.24, on exciting third-quarter sales figures. Volume for the stock more than doubled its daily average at 4.5 million shares ahead of noon ET.
A news release out Sept. 6 told the investing world that the Danbury, Ct.-based FuelCell reported total revenues for the third quarter of 2011 of $31.2 million compared to $18.9 million in the same period last year, an increase of 65 percent. Product sales and revenues in the third quarter were $29.4 million compared to $16.2 million in the prior year quarter, due to increased demand for Direct FuelCell(R) (DFC(R)) power plants.
Product sales and revenues for the third quarter of 2011 included $21.2 million of power plants and fuel cell kits, $5.5 million primarily from installation services and revenue from the 100 kilowatt (kW) joint development agreement with POSCO Power, and $2.7 million from service agreements.
The Company generated a gross profit for the third quarter of 2011 from products and services of $0.2 million, an important milestone on the path to profitability and the first quarterly gross profit since commercializing its DFC technology.
The same release quoted FuelCell CEO Chip Bottone, “The team at FuelCell Energy achieved an important milestone this quarter by generating a gross margin for the first time since we began the commercialization process of Direct FuelCells.
“We are executing our revenue growth plan and benefitting from operating leverage that is driving down costs. We have record product and service backlog of $230.6 million and we are producing at a record rate as our Operations Group, led by Tony Rauseo, Chief Operating Officer has substantially increased our production run rate to a level of 56 megawatts annually compared to 22 megawatts of production for fiscal year 2010,” Bottone concluded.
Direct FuelCell(R) power plants are generating ultra-clean, efficient and reliable power at more than 50 locations worldwide. The Company’s power plants have generated over 850 million kWh of power using a variety of fuels including renewable biogas from wastewater treatment and food processing, as well as clean natural gas.
