Plug Power, a leader in providing clean, reliable energy solutions, today reported its 2014 first quarter results.
Total revenue for the first quarter of 2014 was $5.6m, comprised of $3.2m for product revenue, $2.1m for service revenue and $0.3m for research and development (R&D) contract revenue. This compares to total revenue of $6.4m in the first quarter of 2013, which was comprised of $4.7m for product revenue, $1.3m for service revenue and $0.4m for R&D contract revenue.
Total cost of revenue for the first quarter of 2014 was $7.9m, comprised of $3.5m for cost of product revenue, $4m for service revenue and $0.4m for cost of R&D contract revenue. This compares to total cost of revenue of $8.6m in the first quarter of 2013, which was comprised of $5.1m for cost of product revenue, $2.9m for service revenue and $0.6m for cost of R&D contract revenue.
Despite the wider-than-expected losses, some significant accomplishments in the first quarter include:
Broad Customer Acceptance of GenKey:
Plug Power has closed GenKey deals with such customers as Kroger, Walmart, Volkswagen and Central Grocers during the quarter. GenKey is Plug Power’s turnkey hydrogen fuel cell solution intended to simplify the transition to fuel cells for the customer. The first GenKey site is scheduled to be deployed this month with Walmart in Pottsville, Pennsylvania.
Enhanced Balance Sheet:
As of May 14, 2014, Plug Power has $174m in cash on its balance sheet to support business growth. With this funding, Plug Power intends to leverage opportunities to increase revenue and margins through strategic investments in areas such as stack development.
Focus on hydrogen generation and distribution opportunities:
The company views hydrogen generation and distribution as critical to expand margins and increase revenue in the future. Some of the recent funding may be used to provide capital to fund projects supporting this activity.
Already to date in 2014, Plug Power has over $80m in bookings – double the bookings from 2013. Plug Power attributes this increased growth to the successful launch of its GenKey business. The company expects to ship over 650 GenDrive units in the second quarter.
“We are focused on building a large profitable company,” said Andy Marsh, CEO at Plug Power Inc. “Investments in the sales team, hydrogen generation, hydrogen distribution, geographic expansion and stack technologies are just some of the steps being taken by Plug Power today to build our future. We are targeting over $70m in revenue for 2014, but these steps are expected to accelerate growth in the upcoming years.”