Ballard Power Systems Inc. Q1 2010 Earnings Call Transcript

While this BSNL development will not have any material impact on Ballard, this will mean lower shipment volumes of Methanol systems to India in 2010. And as far as the impact of the BSNL delay on IdaTech, IdaTech has maintained its guidance for its unit sales volumes for 2010. No change in their volume, but has indicated that it expects a shift in mix with more hydrogen systems and fewer methanol systems.

Turning to Dantherm Power, since the closing of the transaction in January we've been pleased with progress to date. We've implemented an integrated operating model that includes relocating two of our employees to Denmark to become employees of Dantherm Power.

Dantherm Power is moving forward with several product related development initiatives that will strengthen their position in backup power. They are developing new lower cost hydrogen systems for production later this year. And on the sales front, Dantherm Power is engaged in early stage relationships with service providers in the EU, China and Canada.

In distributed generation, in February we announced an MOU with K2 Pure for a 1 megawatt fuel cell generator system to be operated with byproduct hydrogen at K2's new bleach plant in California. We've now progressed to the contract negotiation phase with K2 Pure.

And in Bus, we sold modules to both APTS of the Netherlands and SunLine Transit Agency in Palm Springs. Overall, our order book increased in the quarter by 29% or about $7 million to stand at $29 million as of the end of the quarter. And to reiterate, that's a rolling 12 month number. To give you a gauge on near-term revenue growth.

In terms of progress, again there are six growth milestones. One, we expect shippings late this year for IdaTech methanol reformate systems for India as I said. Two, we see good prospects for Dantherm Power for hydrogen system deployment in a major new network. Three, we expect site acceptance of the FirstEnergy 1 MW system towards the end of Q2.

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