Cash and cash equivalents
Total cash and cash equivalents was $57.5 million at October 31, 2012, which does not include $10.0 million received on November 1, 2012 from POSCO Energy for a payment due under the license agreement. Net cash use for the fourth quarter of 2012 was $16.3 million. Power plant components in inventory totaled $11.3 million at October 31, 2012 and will be converted into cash in 2013 as the power plants are completed, installed and cash collected from the owner of the Bridgeport fuel cell park, as discussed in greater detail in the Business Highlights section below. Capital spending for the fourth quarter of 2012 was $1.8 million and depreciation expense was $1.0 million.
Business Highlights and Strategy Execution
POSCO Energy Order and License Agreement"We announced the largest order in our history combined with a license agreement to add manufacturing capacity in Asia that will provide a multitude of benefits to FuelCell Energy," said Chip Bottone, President and CEO, FuelCell Energy, Inc. "These actions, combined with the recent sale of a 14.9 megawatt fuel cell park in Bridgeport, Connecticut and initiatives in Europe, have laid the foundation for global growth as we work to expand sales volume and reduce product costs in our push to profitability." During the fourth quarter of 2012, the Company announced a multi-year 121.8 MW order for fuel cell kits and services, and a licensing agreement for manufacturing of fuel cell components in South Korea by partner POSCO Energy. Local manufacturing is needed in Asia to meet the growing demand. A recently announced 59 megawatt fuel cell park in South Korea that will be jointly owned by an electric utility, a gas distribution company, financial investors and POSCO Energy, illustrates expanding demand for ultra-clean distributed generation to meet the mandates of the country's Renewable Portfolio Standard.