FuelCell Energy (NASDAQ: FCEL) reported Q1 EPS of ($0.48), $0.13 worse than the analyst estimate of ($0.35). Revenue for the quarter came in at $33.5 million versus the consensus estimate of $35.21 million.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter of 2016 totaled ($10.3) million. Adjusted EBITDA in Q414 was negative $4.08 million.

During the first quarter of 2016, the University of California Irvine Medical Center (UCI) project began ommercial operation and financing for this project was closed with PNC Energy Capital (PNC). The transaction has been structured as a sale-leaseback. The Company has determined that the power plant, according to U.S. GAAP, is “integral equipment.” This results in the transaction being accounted for as a financing transaction, which requires the Company to continue to report project assets and to record a financing obligation for the proceeds received from PNC. The Company will recognize electricity sales over the term of the underlying 19 year power purchase agreement (PPA) in Service revenue of approximately $0.2 million per quarter. Additionally, $1.6 million of grant awards received in relation to the project will be recognized over time, with $1.1 million recorded as reduction to project assets and $0.5 million as deferred revenue. Selective project ownership, such as the UCI project, results in higher expected margins over the life of the project with recurring quarterly revenue and margin recognized over time rather than in one lump sum, as would be the case if the project was sold to a project investor.

Total backlog was $403.9 million as of January 31, 2016 compared to $337.0 million as of January 31, 2015 and $381.4 million as of October 31, 2015.

• Services backlog totaled $303.2 million as of January 31, 2016 compared to $207.5 million as of January 31, 2015. Services backlog includes future revenue from routine maintenance, scheduled module exchanges and revenue from power purchase agreements that the Company retains on-balance sheet.
• Product sales backlog totaled $65.7 million as of January 31, 2016 compared to $109.0 million as of January 31, 2015. Product sales backlog does not include the 63 megawatt Beacon Falls project which is under development.
• Advanced Technologies contracts backlog totaled $35.0 million as of January 31, 2016 compared to $20.5 million as of January 31, 2015.

For earnings history and earnings-related data on FuelCell Energy (FCEL) click here.