Toronto based Hydrogenics Corp has widened its losses in the second quarter but says it is applying sound business principles to get back on track.
The clean energy technology company which develops hydrogen and fuel cell technology, including test stations for fuel cells, has also generated higher revenues, benefiting from the acquisition of Stuart Energy.
Hydrogenics reported it lost $9.5 million US for the three months ended June 30, compared with a loss of $8.5 million US last year. Revenues rose 76 per cent to $6.3 million from $3.6 million, helped by the acquisition of Stuart Energy Corp, but these were still down compared to first quarter revenues. Gross profit was 17.1 per cent of revenues, reflecting a heavier weighting of hydrogen generation products.
Cash operating costs were $7 million, an increase of 14 per cent from $6.2 million in 2004, reflecting the incremental costs associated with Stuart Energy's operations.
The company says the increase in revenues combined with synergies derived from the Stuart Energy acquisition will accelerate its path to profitability and its order backlog remains strong.
These include a major three-year project to lead a consortium of partners in the deployment of a Wind-Hydrogen Village project on Prince Edward Island, Canada, to demonstrate the central role that hydrogen and fuel cells are anticipated to play in future integrated energy systems based on the increased use of clean renewable energy sources.
Five of the initial 25 units for American Power Conversions new InfraStruXure have been delivered and the majority should be delivered this year. APC is a provider of backup power systems for critical data networks and their InfraStruXure contains an integrated fuel cells system product to meet customer needs for extended backup run-time.
This year, Hydrogenics completed the development and integration of a fuel cell hybrid bus for demonstration to the State of North-Rhine Westphalia in Germany. Certification for street use in Germany is nearing completion, an important step towards commercialisation.
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