Ayush BansalFuelCell Energy (NASDAQ: FCEL) reported its Q4 earnings results on Wednesday, December 29, 2021.
The results missed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for a loss of 2 cents per share.
Fuelcell Energy
Image: Korea Bizwire
Fourth Quarter Fiscal 2021 Financial Highlights
- Revenues of $13.9 million compared to $17.0 million
- Loss from operations of $(22.6) million compared to $(17.1) million
- Unrestricted cash and cash equivalents of $432.2 million as of October 31, 2021, compared to $149.9 million as of October 31, 2020
- Backlog of $1.29 billion as of October 31, 2021, comparable to the backlog as of October 31, 2020
“We are expecting orders for at least 20 replacement modules in calendar year 2022 to service existing installations in South Korea,” Few said on the company’s earnings call. “The total value of these orders represents roughly 86% of our 2022 revenue.
We are optimistic that we will see meaningful revenues from product sales from Korea on a going forward basis.”
The chief executive also said FuelCell Energy is looking forward to creating opportunities in other Asian markets as well as select countries in Europe, the Middle East, and Africa where it is prioritizing product sales.
POSCO received the right to service its existing installed POSCO customer base but was given no other rights to FuelCell Energy technology in South Korea or broader Asian markets.
Factors to be Noted:
Its fiscal fourth-quarter earnings are expected to have gained from the increasing adoption of the fuel cell technology and proper execution of projects.
During the quarter, FuelCell Energy signed an agreement with ExxonMobil to extend its ongoing collaboration on fuel cell technology by six months.
The company is likely to have benefited from lower capital servicing costs in the fiscal fourth quarter as FuelCell Energy reduced outstanding long-term debt during the first nine months of fiscal 2021.
Earlier in the year, FuelCell Energy announced that it had advanced through commissioning at the US Navy submarine base in Groton, Connecticut, and the company’s 7.4-megawatt power platform in Yaphank, New York.
FuelCell Energy also extended its joint development agreement with ExxonMobil until 30 April 2022.
Shares of FuelCell Energy Inc. FCEL, (-6.83%) fell 5.1% to a 13-month low in pre-market trading on Wednesday, after the fuel cell technology company reported a larger-than-expected tax loss in the fourth quarter as revenues fell surprisingly.
Financial Statement
FUELCELL ENERGY, INC.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(Amounts in thousands, except share and per share amounts)
| Three Months Ended October 31, | |||||||
| 2021 | 2020 | ||||||
| Revenues: | |||||||
| Product | $ | – | $ | – | |||
| Service and license | (126 | ) | 5,436 | ||||
| Generation | 6,721 | 5,148 | |||||
| Advanced Technologies | 7,340 | 6,415 | |||||
| Total revenues | 13,935 | 16,999 | |||||
| Costs of revenues: | |||||||
| Product | 1,786 | 2,412 | |||||
| Service and license | 3,743 | 8,127 | |||||
| Generation | 12,752 | 10,297 | |||||
| Advanced Technologies | 4,019 | 4,208 | |||||
| The total cost of revenues | 22,300 | 25,044 | |||||
| Gross loss | (8,365 | ) | (8,045 | ) | |||
| Operating expenses: | |||||||
| Administrative and selling expenses | 10,684 | 7,603 | |||||
| Research and development expense | 3,505 | 1,474 | |||||
| Total costs and expenses | 14,189 | 9,077 | |||||
| Loss from operations | (22,554 | ) | (17,122 | ) | |||
| Interest expense | (1,701 | ) | (4,268 | ) | |||
| Change in fair value of common stock warrants liability | – | 2,225 | |||||
| Other income, net | 103 | 314 | |||||
| Loss before benefit (provision) for income taxes | (24,152 | ) | (18,851 | ) | |||
| Benefit (provision) for income taxes | 1 | (5 | ) | ||||
| Net loss | (24,151 | ) | (18,856 | ) | |||
| Net income attributable to redeemable noncontrolling interest | 30 | – | |||||
| Net loss attributable to FuelCell Energy, Inc. | (24,181 | ) | (18,856 | ) | |||
| Series B preferred stock dividends | (800 | ) | (800 | ) | |||
| Net loss attributable to common stockholders | $ | (24,981 | ) | $ | (19,656 | ) | |
| Loss per share basic and diluted: | |||||||
| Net loss per share attributable to common stockholders | $ | (0.07 | ) | $ | (0.08 | ) | |
| Basic and diluted weighted average shares outstanding | 366,668,154 | 256,375,578 | |||||