"The licensing agreement offers a number of value drivers for us beyond the $26 million initial license fee," continued Mr. Bottone. "The royalty has been enhanced compared to the prior structure, both in terms of cash impact and tenure; increased production, whether in the USA or South Korea, will help us leverage our integrated global supply chain to further reduce product costs; a second manufacturing source is valued by some project investors; the agreements will result in additional revenue streams such as balance of plant sales and consulting revenue for design and equipment procurement for the POSCO Energy production facility; and as we work to further leverage our collective strengths, we expect to further enhance the value proposition for customers and our business."As a result of entering into this license agreement, commencing with the first quarter 2013 financial results, license and royalty income will be classified under Revenues on the Consolidated Statements of Operations reflecting the Asian business model for the Company's core technology and growing license and royalty stream.
FuelCell Energy Reports Fourth Quarter Results And Business Highlights
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