P&G's site in Greensboro, with 129 units, was also now online as is the P&G site in Oxnard, California where 47 units were deployed.
Newark Farmers Market, a leader in wholesale distribution of fruits and vegetables in Northern -- Northeastern United States, serving partners such as the Shop Right grocery chain, deployed 96 units at their New Jersey facility.
Additionally, we're in the process of shipping and installing 254 units for the Wal-mart facility at Washington Court House, Ohio.
We continue to be the leader in deploying PEM fuel cells under 25 kilowatts, with over 2,800 units in the field having 8 million hours of operation. An indicator of our success in the industry is that in the United States, 19 out of every 20 hydrogen fuelings, fills a Plug Power fuel cell.
Another highlight is that all the units currently being shipped are using the next-generation platform for our low and high-power products.
The cost of these platforms reduces the variable cost for the product by up to 30%. Most of the savings come from a reduction in material cost.
Material cost is the largest contributor to our product cost, representing over 80% of the total variable cost of a unit.
By the fourth quarter, we expect the ratio of material cost to product price will be approximately 65%, and will, we believe, reduce to below 60% in 2013. This is one of the keys to our path to profitability.
In the second quarter, Plug Power achieved positive gross margins for product shipments, if one dismisses holdbacks due to 1603. As we have discussed previously, the 1603 holdback revenue will be recognized in later quarters in 2012 with no cost of sales.
The ability to achieve positive product gross margins show that the product cost reduction and scale production were having the expected impact on margins.
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