We have returned to a 56-megawatt run rate, which will enable product margin expansion. Our technology is versatile, and I will discuss new programs, potential commercialization opportunities arising from our advanced technology initiatives.
We continue to deepen existing relationships and develop new relationships with local, state and federal legislators as we share the attributes of our power plants and job creation potential of our business model.
I will discuss our performance and activity in more detail after Mike Bishop, our Chief Financial Officer, reviews our financial results for the quarter. Mike?
Michael S. BishopThank you, Chip. Good morning, and thank you for joining our call today. Please turn to Slide 5 titled Financial Highlights. FuelCell Energy reported total revenues for the third quarter of 2012 of $29.7 million compared to $31.2 million in the same period last year. Product sales and revenues for the third quarter totaled $27.6 million compared to $29.4 million reported in the prior year. Research and development contract revenue was $2.1 million for the third quarter of 2012 compared to $1.8 million for the prior year quarter. For the third quarter of 2012, our gross loss of $2.7 million was realized compared to a gross profit of $100,000 for the prior year quarter. Annualized production volume in the third quarter of 2012 was approximately 45 megawatts compared to 56 megawatts in the prior year period. The company expects to generate profits at a rate of 50 to 55 megawatts. Thus, the reduced run rate in the quarter combined with a mix heavily weighted towards kits sales drove negative gross margin. In addition, a $1.1 million inventory obsolescence charge was taken in the third quarter of 2012 for some early generation sub-megawatt balance-of-plant parts. Total operating expenses were $7.8 million for the third quarter of 2012 compared to $7.5 million in the prior year. Although operating expenses are down sequentially from $8 million in the second quarter of 2012, G&A expenses are up over the prior year as a result of higher business development activity and the addition of our business entity in Germany. Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV