Losses Continue at FuelCell

The company’s total backlog at the end of the quarter was $342.8 million, but this did not include the Pepperidge Farm or Riverside projects, which will contribute roughly $40 million to backlog in the fiscal third quarter of 2015. This will begin contributing to revenue in fiscal 2016.

Product sales backlog totaled $91.6 million in the fiscal second quarter, compared to $146.6 million in the same period last year. Service backlog totaled $203.7 million, versus $181.9 in the previous year. Finally, advanced technologies contracts backlog totaled $16.9 million at the end of the quarter, an increase from $14.3 million last year.

Chip Bottone, president and CEO of FuelCell, said:

We are advancing the development of a 63 megawatt project, the largest in the history of the Company and announced the repeat business with two customers. We have taken tangible measures to support these and other larger scale opportunities and expect meaningful revenue growth in the coming quarters as we execute on our strong pipeline and backlog. Our prudently planned capacity expansion in North America and our partner’s fuel cell manufacturing addition in Asia are on-track and will double the global production capacity while reducing product costs simultaneously.

Cash and cash equivalents (both restricted and unrestricted) totaled $90.0 at the end of the quarter, versus $89.2 million at the end of the 2014 fiscal year.

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Shares of FuelCell closed Monday down 0.8% at $1.21. Following the release of the earnings report, shares were down 9.9% at $1.09 in premarket trading. The stock has a consensus analyst price target of $2.59 and a 52-week trading range of $1.05 to $2.84.