Year-to-date GenCore orders exceed 400 LATHAM, N.Y.-- Plug Power Inc.
(Nasdaq: PLUG), a leader in providing clean, reliable on-site energy
products, today reported operational accomplishments and financial
results for the quarter ended September 30, 2006.
"We have received orders for more than 400 systems so far this year,
and we continue to gain traction within the global telecommunications
market sector," said Roger Saillant, Plug Power's CEO. "We remain
confident that we will achieve each of our publicly disclosed
milestones for 2006."
Key accomplishments against 2006 milestones include:
Grow the number of GenCore orders received to between 500 and 750:
Plug Power grew year-to-date order total to more than 400 units. Among
the orders was the previously announced follow-on purchase order for
120 systems by IST Holdings (PTY) Ltd., Plug Power's South African
distributor, with the majority of the systems targeted for
Expand GenCore product line feature set:
The Company exhibited its new battery-free GenCore backup fuel cell
system, which uses ultracapacitor technology, at the 9th annual GSM 3G
Africa conference, a leading Pan-African communication event. The
ultracapacitor solution is designed to provide more reliable and
durable on-site backup power in remote regions with severe climates
that negatively impact battery life spans and overall performance. Plug
Power systems are currently installed with telecommunication customers
in a region where temperatures routinely exceed 100 degrees Fahrenheit.
Expand testing and evaluation of next-generation GenSys continuous
run product with targeted customers in the telecommunications industry:
As part of its ongoing assessment for the telecommunications market
Plug Power has shipped more than 20 GenSys units, 10 of which were
commissioned at Robins Air Force Base in Georgia and eight of which are
expected to be commissioned next month at NASA Glenn Research Center in
Ohio. Plug Power is in negotiations with select wireless
telecommunications companies with whom it expects to deploy GenSys
evaluation systems later this year.
Enhance Company portfolio of strategic distribution and service
partners while continuing to foster and lead industry collaboration:
Plug Power signed a Strategic Partner Agreement with the National
Innovation Company New Energy Projects (NIC NEP) to collaborate on
technology and market development efforts in Russia. Based on both
technical and market considerations, Plug Power and NIC NEP expect to
develop a comprehensive, prioritized product roadmap to drive product
development and technology delivery activities in line with Russian
The Company also formed a collaborative relationship with NexTech
Materials, Ltd. to investigate development of solid oxide fuel cell
power systems, including joint activities such as market research, fuel
cell stack development and testing, system design and prototype
Total revenue for the third quarter ended September 30, 2006, was $.8
million, compared to $.9 million for the third quarter in 2005.
Year-to-date total revenue was $.8 million, compared to $0.8 million
in the prior year period. The Company continues to defer product and
service revenue, a component of total revenue, at the time of sale and
amortize that revenue over the period of the underlying service and
other contractual obligations. Deferred revenue was $.2 million at
September 30, 2006, compared to $.1 million at December 31, 2005.
Research and development expenses were $1.6 million for the third
quarter of 2006 compared to $.5 million during the same quarter in
2005. Year-to-date R&D expenses were $0.6 million for the nine months
ended September 30, 2006, compared to $7.1 million for the nine months
ended September 30, 2005.
Net loss for the quarter ended September 30, 2006, was $1.9 million,
or $.14 per share, compared to $1.9 million, or $.15 per share, for
the same period in 2005. Year-to-date net loss was $7.0 million, or
$.43 per share, compared to $5.3 million or $.47 per share for the
same period last year.
Net cash used in operating activities for the third quarter ended
September 30, 2006, was $1.2 million, compared to $0.7 million in
2005. Year-to-date net cash used in operating activities was $2.8
million compared to $0.1 million in the prior year.
As of September 30, 2006, the Company had $78.5 million in
unrestricted cash and marketable securities and $78.6 million in
For more detailed information, see the attached financial highlights.
Plug Power has scheduled a conference call today at 10 a.m. (EDT) to
review its third quarter 2006 results for all interested parties. The
dial-in phone number for the conference call is (617) 614-3944, pass
code 7584 (PLUG). The webcast can be accessed by going directly to the
Company's Web site at www.plugpower.com and selecting the conference
call link on the home page. A playback of the call will be available on
the Web site for a period following the call.
About Plug Power
Plug Power Inc. is an established leader in the deployment of clean,
reliable, on-site energy products. More than 650 Plug Power fuel cell
systems have been delivered to customers worldwide in commercial,
public sector, telecommunications, utility and uninterruptible power
supply markets. 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.