EXHIBIT 99.1
Plug Power Announces Third Quarter 2009 Financial Results
LATHAM, N.Y., Nov. 5, 2009 (GLOBE NEWSWIRE) -- Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, today provided a progress update and reported its financial results for the third quarter of 2009.
The Company reaffirmed its milestones for 2009:
* Secure 1,000 orders consisting of both GenDrive(TM) and GenSys(R) fuel cell units for the full year * Contain net cash used for operating expenses to the range of $38-42 million for the full year * Release the GenDrive class-2 product in the fourth quarter, broadening the GenDrive product portfolio
As a final milestone, Plug Power set a target to announce its path and timeline to profitability during the fourth quarter. This milestone was completed during its analyst and investor day meeting on October 8, 2009. By executing its strategy, Plug Power plans to be profitable by 2012, generating a positive cash flow for the first time in the Company's history. Plug Power expects to achieve this by continuing to dedicate focus and resources on its two commercial products, GenDrive and GenSys.
"For years, Plug Power has been a leader in the research and development of fuel cell products and technologies," said Andy Marsh, CEO at Plug Power. "We are now focused on becoming the leader in the commercialization of fuel cell products, focusing on material handling and prime power applications. Achieving our 2009 milestones is a critical step in proving to the investment community that the company has made the transformation from the laboratory to commercial acceptance."
Product Orders, Shipments and Backlog
Total (GenDrive, GenSys and GenCore(R)) product orders for the quarter were 325 units; shipments in the third quarter were 6 units. Year to date, as of September 30, 2009, Plug Power had received 582 orders and shipped 217 units. Total product backlog at September 30, 2009 was 845 units, of which more than 50% are expected to ship in 2010.
"We will begin to see several large orders shipping over the next several weeks and months and we expect to ramp both orders and shipments throughout the upcoming year," said Gerry Anderson, CFO at Plug Power.
Market demand for GenDrive is increasing as customers, such as Wegmans, Whole Foods and Sysco, move from trials to full fleet conversions. Their decisions are based on an increase in productivity, operator satisfaction, proven return on investment and a reduction in on-site carbon emissions.
Financial Results
Net loss for the third quarter of 2009 was $10.2 million, or $0.08 per share on a basic and diluted basis. This compares with a net loss of $13.8 million, or $0.16 per share, for the third quarter of 2008.
Revenue for the third quarter of 2009 was $2.5 million. This compares with revenue in the same period of 2008 of $4.1 million. Product and service revenue was $1.0 million for the third quarter of 2009, and research and development (R&D) contract revenue was $1.5 million for the quarter. These amounts compare to $1.3 million of product and service revenue and $2.8 million of R&D contract revenue for the third quarter of 2008.
Deferred product and service revenue at September 30, 2009 was $3.2 million. This compares to $4.1 million at September 30, 2008. Plug Power defers recognition of product and service revenue and recognizes revenue on a straight-line basis over the service period of each sold system. Accordingly, Plug Power expects to recognize the deferred product and service revenue over future periods as service commitments are fulfilled.
Total cost of revenue for the third quarter of 2009 was $4.1 million, comprised of $1.3 million for product and service cost of revenue and $2.8 million for R&D contract cost of revenue. This compares to total cost of revenue of $5.6 million in the third quarter of 2008, which was comprised of $1.8 million of costs of product and service revenue and $3.8 million of cost of R&D contract revenue.
R&D expenses for the third quarter of 2009 were $4.4 million compared with $7.7 million for the third quarter of 2008.
Selling, general and administrative (SG&A) expenses were $4.0 million for the third quarter of 2009 compared with $4.8 million for the same period in 2008. Additionally, $0.5 million was expensed for amortization of intangible assets during the quarter compared to $0.6 million for the third quarter of 2008.
Cash and Liquidity
Net cash used in operating activities for the third quarter of 2009 was $8.5 million. On September 30, 2009, Plug Power had cash, cash equivalents and available-for-sale securities of $71.1 million and net working capital of $70.4 million, compared with $116.3 million and $110.7 million, respectively, at September 30, 2008.
Conference Call
Plug Power has scheduled a conference call today at 10:00 am ET to review the Company's results for the third quarter of 2009. Interested parties are invited to listen to the conference call by calling 877.407.8291, or 201.689.8345 for international participants.
The webcast can be accessed by going directly to the Plug Power Web site (www.plugpower.com) and selecting the conference call link on the home page. A playback of the call will be available online for a period following the call.
About Plug Power Inc.
Plug Power Inc. (Nasdaq:PLUG), an established leader in the development and deployment of clean, reliable energy solutions, integrates fuel cell technology into motive and continuous power products. The Company is actively engaged with private and public customers in targeted markets throughout the world. For more information about how to join Plug Power's energy revolution as an investor, customer, supplier or strategic partner, please visit www.plugpower.com.
The Plug Power Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4446
Plug Power Inc. Safe Harbor Statement
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the number of GenDrive and GenSys units we expect to ship in 2010 through 2012, our projected revenues for 2010 through 2012, and our expectations for achieving profitability and positive cash flow in 2012. We believe that it is important to communicate our future expectations to our investors. However, there may be events in the future that we are not able to accurately predict or control and that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements, including, without limitation, our ability to reduce product and manufacturing costs; our ability to improve system reliability for both GenDrive and GenSys; our ability to successfully expand our product lines; the risk that unit orders will not ship, be installed and/or convert to revenue, in whole or in part; our abi lity to develop commercially viable products; the cost and timing of developing our products and our ability to raise the necessary capital to fund such development costs; market acceptance of our GenDrive and GenSys systems; our ability to manufacture products on a large-scale commercial basis; competitive factors, such as price competition and competition from other traditional and alternative energy companies; the cost and availability of components and parts for our products; our ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of fuel and fueling infrastructures for our products; our ability to protect our intellectual property; the cost of complying with current and future governmental regulations; the impact of deregulation and restructuring of the electric utility industry on demand for Plug Power's energy products; and other risks and un certainties discussed under "Item IA-Risk Factors" in our annual report on Form 10-K for the fiscal year ended December 31, 2008, filed with the Securities and Exchange Commission ("SEC") on March 16, 2009, and the reports we file from time to time with the SEC. We do not intend to and undertake no duty to update the information contained in this communication.
Plug Power Inc. Financial Highlights Balance Sheets (Dollars in thousands): -------------------------------------- (unaudited) Sept. 30, Dec. 31, 2009 2008 -------- -------- Assets Current assets: Cash and cash equivalents $ 24,136 $ 80,845 Trading securities - auction rate debt securities 53,485 52,651 Available-for-sale securities 46,975 23,844 Accounts receivable 1,492 2,151 Inventory 6,921 6,264 Auction rate debt securities repurchase agreement 6,090 -- Prepaid expenses and other current assets 1,644 2,351 -------- -------- Total current assets 140,743 168,106 Restricted cash 2,265 -- Property, plant and equipment, net 15,186 17,770 Investment in leased property 2,317 -- Auction rate debt securities repurchase agreement -- 10,224 Intangible assets, net 12,127 12,843 Other assets -- 169 -------- -------- Total assets $172,638 $209,112 ======== ======== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,334 $ 3,275 Accrued expenses 5,412 9,945 Borrowings under line of credit 59,575 62,875 Current portion long term debt 295 -- Deferred revenue 3,212 5,426 Other current liabilities 483 414 -------- -------- Total current liabilities 70,311 81,935 Long term debt 1,218 -- Other liabilities 1,245 1,313 -------- -------- Total liabilities 72,774 83,248 Stockholders' equity 99,864 125,864 -------- -------- Total liabilities and stockholders' equity $172,638 $209,112 ======== ======== Statements of Operations Three months ended Nine months ended (Dollars in thousands): September 30, September 30, ------------------------ ------------------ ------------------ (unaudited) 2009 2008 2009 2008 -------- -------- -------- -------- Revenue Product and service revenue $ 1,045 $ 1,271 $ 3,612 $ 3,252 Research and development contract revenue 1,497 2,783 4,773 9,372 -------- --------- -------- -------- Total revenue 2,542 4,054 8,385 12,624 Cost of revenue and expenses Cost of product and service revenue $ 1,335 $ 1,835 $ 3,566 $ 6,299 Cost of research and development contract revenue 2,815 3,794 7,762 14,526 Research and development expense 4,386 7,702 12,811 26,598 Selling, general and administrative expense 3,974 4,755 11,667 19,637 Amortization of intangible assets 544 563 1,575 1,711 -------- --------- -------- -------- Operating loss (10,512) (14,595) (28,996) (56,147) Interest and other income and net realized gains (losses) from available-for-sale securities 627 1,860 1,318 4,638 Change in fair value of auction rate securities repurchase agreement (570) -- (4,134) -- Net gains (losses) on trading securities 570 -- 4,134 -- Impairment loss on available- for-sale securities -- (789) -- (5,282) Interest and other expense and foreign currency gain (loss) (286) (286) (900) (614) -------- --------- -------- -------- Net loss $(10,171) $ (13,810)$(28,578) $(57,405) ======== ========= ======== ======== Loss per share: Basic and diluted $ (0.08) $ (0.16)$ (0.22) $ (0.65) ======== ========= ======== ======== Weighted average number of common shares outstanding 129,356 88,208 128,961 88,142 ======== ========= ======== ========
CONTACT: Plug Power Inc. Media Contact: Katrina Fritz Intwala (518) 782-7700 ext. 1360 media@plugpower.com Investor Relations Contact: Cathy Yudzevich (518) 782-7700 ext. 1448 investors@plugpower.com