This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Plug Power Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: PLUG

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.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs