Plug Power, a leader in providing clean, reliable energy solutions, today reports its 2014 second quarter results.
Plug Power shipped 687 GenDrive fuel cell units during the second quarter to customers including Walmart, P&G and Central Grocers. The Company also reports a gross margin of 17% on its GenDrive product for the second quarter. Even more notably, Plug Power revenue, at $17.3m for the second quarter, is three-fold greater than that seen in the first quarter of 2014.
During the second quarter, the company successfully deployed its first, complete GenKey site at the Walmart distribution center in Pottsville, Pennsylvania. GenKey is Plug Power’s all-inclusive solution that couples together GenDrive fuel cells, GenCare service and GenFuel hydrogen and fueling infrastructure for use in material handling applications. As a result of the effective deployment in Pottsville, Walmart added an additional site in Sterling, Illinois to the original six-site contract.
Plug Power has experienced success in the food and retail material handling sector, but has also proven an economically-driven value proposition within the automotive manufacturing market in the second quarter of 2014. The company has secured GenDrive and GenKey deals with Volkswagen, BMW, Mercedes-Benz and Honda. The company expects that success within the auto-manufacturing market will open up a plethora of global opportunities as these customers standardise on hydrogen fuel cells to power the electric lift trucks at their manufacturing sites worldwide.
“Activity in the second quarter has demonstrated the value proposition of the GenKey hydrogen and fuel cell solution at customer sites, namely Walmart,” said Andy Marsh, CEO at Plug Power Inc. “Success has resulted in positive gross margins for GenDrive, customer confidence in our ability to deliver on our GenKey services, and driven our ability to expand into new markets.”
Total revenue for the second quarter of 2014 was $17.3m, comprised of $12.6m of product revenue, $4.4m of service revenue and $0.3m of research and development (R&D) contract revenue. This compares to total revenue of $7.5m in the second quarter of 2013, which was comprised of $5.6m of product revenue, $1.5m of service revenue and $0.4m of R&D contract revenue.
The company shipped 687 units during the second quarter of 2014 compared to 246 units in the second quarter of 2013.
Total cost of revenue for the second quarter of 2014 was $17.1m, comprised of $10.4m of cost of product revenue, $5.9m of cost of service revenue and $0.8m of cost of R&D contract revenue. This compares to total cost of revenue of $9.5m in the second quarter of 2013, which was comprised of $5.3m of cost of product revenue, $3.6m of cost of service revenue and $0.6m of cost of R&D contract revenue.
R&D expenses for the second quarter of 2014 were $1.4m compared with $0.8m for the second quarter of 2013. Selling, general and administrative (SG&A) expenses for the second quarter of 2014 were $4.8m compared with $3.2m for the second quarter of 2013.