FuelCell Energy
The company develops fuel cell technology platforms. It offers sub-megawatt solutions for small electricity consumers in Europe. Its customers include utility companies, municipalities, universities, hospitals, government entities or military bases and many industrial and commercial enterprises.10
In its financial results, a $31.8 million profit was reported for the quarter one (Q1) of the fiscal year 2022 (FY22) compared to $14.9 million in Q1 FY21 due to the delivery of six fuel cell modules to Korea Fuel Cell (KFC) under the settlement agreement. The settlement agreement requires KFC to place an additional order for eight modules on or before June 30, 2022.11
The company’s Q1 FY22 operating expenses increased to $41.9 million from $10.8 million in Q1 FY21. Results for Q1 FY22 were negatively impacted by a non-recurring expense of $24 million related to the payment of legal fees to our outside counsel in connection with the settlement of the POSCO Energy dispute. POSCO is the largest private energy producer in South Korea.11
The cost increase was due to marketing and consulting costs due to the company’s rebranding to accelerate sales and commercialization efforts, and talent acquisition. It also spent $5 million on research and development on hydrogen commercialization initiatives in Q1 FY22.11
A $2.9 million gross loss was reported for Q1 FY22 compared to $3.6 million in Q1 FY21. The decrease in gross loss was, in part, due to revenue recognized on the sale of modules in the quarter by KFC.11
During the same period, the company realized a lower service margin as a result of not having new replacement modules, including $3 million in sunk costs due to the Toyota construction project. This loss included a $1 million asset impairment charge related to a legacy conditioning facility at its Danbury, Connecticut, US headquarters.11
