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FuelCell Energy (FCEL) Reports In-Line Q2 Loss; Sees Increasing H214 Revs

June 4, 2014 6:10 AM

FuelCell Energy, Inc. (Nasdaq: FCEL) reported Q2 EPS of ($0.04), in-line with the analyst estimate of ($0.04). Revenue for the quarter came in at $38.3 million versus the consensus estimate of $44.73 million.

Total backlog increased sequentially to $342.8 million at April 30, 2014 compared to $326.9 million at January 31, 2014. Backlog at April 30, 2014 included only one of the two 2.8 megawatt power plants awarded by United Illuminating and announced in April 2014. The second plant and the associated service contract, totaling approximately $28 million, is expected to be included in backlog for the third quarter of 2014.

The Company maintained an annual production run-rate at the Torrington, Connecticut production facility of approximately 70 megawatts during the second quarter of 2014, producing 17.5 megawatts of cell components for fuel cell kits, modules, and fuel cell power plants. Fuel cell shipments totaled 15.7 megawatts during the second quarter of 2014 compared to 12.6 megawatts in the prior year period. The Company has capacity in place to support an annual run-rate of 100 megawatts.

Based on production planning and the favorable progress of contract negotiations underway on a number of projects, increasing quarterly revenues are forecasted in the second half of fiscal 2014 and into 2015. With this level of expected activity, the Company is targeting average quarterly revenues for the second half of 2014 in the $50 - $60 million range at the current production level. The Company continues to target break-even cash flow as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) at the current 70MW run-rate based on expected order closure of complete power plants that will enhance the sales mix and expand margins.

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

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