This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hydrogenics Reports Second Quarter 2010 Results

"While our revenue was negatively affected this period due to some shipments being pushed out into the third quarter, we once again posted improved margins and ended the quarter with a solid backlog," said Daryl Wilson, President and Chief Executive Officer. "In addition, we successfully reduced our cash operating costs by nearly 70% – resulting in an operating loss of $1.4 million as compared with $5.7 million last year. We continue to see a rebound in our end markets and view the second half of 2010 as being an improvement, setting the stage for further growth in 2011."

Results for the Second Quarter of 2010 Compared to the Second Quarter of 2009

Revenues decreased $2.7 million or 49%, primarily reflecting lower revenues in our OnSite Generation business unit, due to delays on the part of three of our OnSite Generation customers. These orders have an approximate sales value of $7.9 million and are currently expected to be delivered in the third quarter. This decrease was partially offset by increased revenues in our Power Systems business unit.  

Gross profit for the quarter, expressed as a percentage of revenues, was 30% (versus 16% in 2009), reflecting higher gross profit generated by the Power Systems business unit resulting from product mix and product cost reductions. This increase was partially offset by lower gross margins in the OnSite Generation business unit resulting from pricing pressure on orders booked in 2009 as well as lower cost synergies and less overhead absorption due to reduced revenues.

Cash operating costs were $2.0 million for the quarter, a 68% decrease from $6.2 million in the second quarter of 2009. Cash operating costs for the three months ended June 30, 2010 reflect: (i) a $1.4 million decrease in selling, general and administrative expenses resulting from ongoing cost reduction initiatives; (ii) a $0.6 million increase in third party research and product development funding; and (iii) a $0.6 million decrease in research and product development expenditures resulting from standardization of product development and more focus on product cost reduction efforts.  

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
HYG $90.79 0.00%
HYGS $12.11 0.00%
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs