Research and development expenses for the fourth quarter and year ended December 31, 2012 were $1.3 million and $5.4 million, respectively. This compares to the fourth quarter and year ended December 31, 2011 of $2.0 million and $5.7 million, respectively. 

Selling, general and administrative (SG&A) expenses for the fourth quarter and year ended December 31, 2012 were $4.0 million and $14.6 million, respectively. This compares to SG&A expenses in the fourth quarter and year ended December 31, 2011 of $3.5 million and $14.5 million, respectively. Additionally, $0.6 million was expensed for amortization of intangible assets during the fourth quarter of 2012 and the fourth quarter of 2011. For the full year, $2.3 million was expensed for amortization of intangible assets for 2012 and 2011.

Cash and Liquidity

Net cash used in operating activities for the fourth quarter and year ended December 31, 2012 was $4.6 million and $20.2 million, respectively. On December 31, 2012, Plug Power had cash and cash equivalents of $9.4 million and net working capital of $6.9 million. This compares to $13.9 million and $22.5 million, respectively, at December 31, 2011.

The accompanying financial information and reconciliation tables provide additional information on the Company's year-to-date performance as it relates to the full year 2012 milestones previously announced.

Conference Call

Plug Power has scheduled a conference call today at 10:00 am ET to review the Company's results for the 2012 fourth quarter and year-end results. Interested parties are invited to listen to the conference call by calling 877.407.8291.

The webcast can be accessed by going directly to the Plug Power Web site ( ) and selecting the conference call link on the home page. A playback of the call will be available online for a period following the call.

About Plug Power Inc.

The architects of modern fuel cell technology, Plug Power revolutionized the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints.  Long-standing relationships with industry leaders forged the path for Plug Power's key accounts, including Walmart, Sysco and Coca-Cola.  With more than 3,000 GenDrive units shipped to material handling customers, accumulating over 8 million hours of runtime, Plug Power manufactures tomorrow's incumbent power solutions today. Additional information about Plug Power is available at .

Plug Power Inc. Safe Harbor Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to Plug Power's expected use of the net proceeds from the offering. These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, any of which are difficult to predict, are beyond Plug Power's control and that may cause Plug Power's actual results to differ materially from the expectations in Plug Power's forward-looking statements including statements regarding the risk that we may not have sufficient cash to fund our operations to profitability and that we may be required to seek strategic alternatives, including but not limited to a potential business combination or a sale of the company, or reduce and/or cease our operations, other risks and uncertainties related to satisfaction of the closing conditions of the offering, the estimated proceeds from the offering and the anticipated use of proceeds from the offering, the risk that unit orders will not ship, be installed and/or convert to revenue, in whole or in part; the cost and timing of developing Plug Power's products and its ability to raise the necessary capital to fund such development costs; the ability to achieve the forecasted gross margin on the sale of Plug Power's products; the actual net cash used for operating expenses may exceed the projected net cash for operating expenses; the cost and availability of fuel and fueling infrastructures for Plug Power's products; market acceptance of Plug Power's GenDrive system; Plug Power's ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of components and parts for Plug Power's products; Plug Power's ability to develop commercially viable products; Plug Power's ability to reduce product and manufacturing costs; Plug Power's ability to successfully expand its product lines; Plug Power's ability to improve system reliability for GenDrive; competitive factors, such as price competition and competition from other traditional and alternative energy companies; Plug Power's ability to manufacture products on a large-scale commercial basis; Plug Power's ability to protect its intellectual property; the cost of complying with current and future governmental regulations; and other risks and uncertainties discussed in the reports Plug Power files from time to time with the SEC.  Plug Power does not intend to, and undertakes no duty to update any forward-looking statements as a result of new information or future events.
 Plug Power Inc.         
 Financial Highlights         
Balance Sheets (Dollars in thousands):        
  December 31, 2012 December 31, 2011    
Current assets:         
Cash and cash equivalents   $ 9,380  $ 13,857    
Accounts receivable   4,022  13,389    
Inventory   8,550  10,355    
Prepaid expenses and other current assets   1,988  1,894    
Total current assets   23,940  39,495    
Property, plant and equipment, net   6,708  8,687    
Leased property under capital lease, net   2,970  --     
Note receivable   571  --     
Intangible assets, net   5,271  7,474    
Total assets   $ 39,460  $ 55,656    
Liabilities and Stockholders' Equity         
Current liabilities:         
Borrowings under line of credit   $ 3,381  $ 5,405    
Accounts payable   3,558  4,669    
Accrued expenses   3,828  3,173    
Product warranty reserve   2,672  1,211    
Deferred revenue   2,950  2,505    
Obligations under capital lease   650  --     
Other current liabilities   --   80    
Total current liabilities   17,039  17,043    
Obligations under capital leases   1,305  --     
Deferred revenue   4,362  3,037    
Common stock warrant liability   476  5,321    
Other liabilities   1,248  1,219    
Total liabilities   24,430  26,620    
Stockholders' equity   15,030  29,036    
Total liabilities and stockholders' equity   $ 39,460  $ 55,656    
Statements of Operations (Dollars in thousands):  Three months ended December 31,   Twelve months ended December 31, 
   2012   2011   2012   2011 
Product and service revenue   $ 5,696  $ 11,296  $ 24,407  $ 23,223
Research and development contract revenue   226  544  1,701  3,886
Licensed technology revenue   --   27  --   517
Total revenue   5,922  11,867  26,108  27,626
Cost of revenue and expenses        
Cost of product and service revenue  9,106  11,482  37,657  30,670
Cost of research and development contract revenue  415  726  2,805  6,232
Research and development expense   1,345  2,008  5,434  5,656
Selling, general and administrative expense   4,020  3,495  14,577  14,546
Gain on sale of leased assets   --   --   --   (673)
Amortization of intangible assets   580  568  2,306  2,322
Operating loss   (9,544)  (6,412)  (36,671)  (31,127)
Interest and other income and net realized losses from available-for-sale securities   55  27  226  248
Change in fair value of warrant liability   1,119  (758)  4,845  3,447
Interest and other expense and foreign currency gain (loss)   (104)  (25)  (262)  (22)
Net loss   $ (8,474)  $ (7,168)  $ (31,862)  $ (27,454)
Loss per share: Basic and diluted  $ (0.22)  $ (0.32)  $ (0.93)  $ (1.46)
Weighted average number of common shares outstanding  38,156,591  22,743,388  34,376,427  18,778,066
 Plug Power Inc.         
 Reconciliation of Non-GAAP financial measures         
Reconciliation of Reported Net loss to EBITDAS        
   Three months ended December 31,   Twelve months ended December 31, 
   2012   2011   2012   2011 
 Operating loss, as reported   $ (9,544)  $ (6,412)  $ (36,671)  $ (31,127)
 Stock based compensation   501  (150)  2,002  1,452
 Depreciation and amortization   1,190  1,100  4,376  4,455
 EBITDAS   $ (7,853)  $ (5,462)  $ (30,293)  $ (25,220)
EBITDAS is defined as operating income (loss), as adjusted for depreciation and amortization expense and charges for equity compensation. EBITDAS is a non-GAAP measure of our financial performance and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of our liquidity.
Reconciliation of Gross margin percentage to Adjusted gross margin percentage      
   Three months ended December 31,   Twelve months ended December 31, 
   2012   2011   2012   2011 
 Product and service revenues, as reported   $ 5,696  $ 11,296  $ 24,407  $ 23,223
 Deferred revenue recognized in the reporting period   (1,619)  (939)  (3,362)  (2,020)
 Current invoiceable value of shipments, recorded to deferred revenue   302  2,615  3,631  3,728
 Product and service revenues, as adjusted   $ 4,379  $ 12,972  $ 24,676  $ 24,931
 Cost of product and service revenue   $ 9,106  $ 11,482  $ 37,657  $ 30,670
 Gross margin percentage  (59.9%) (1.6%) (54.3%) (32.1%)
 Adjusted gross margin percentage  (107.9%) 11.5% (52.6%) (23.0%)
Gross margin percentage is a financial ratio used to indicate the relationship between cost of product and service revenue and product and service revenue. We use the term adjusted gross margin percentage to refer to product and service revenue, as adjusted, less total cost of product and service revenue as a percentage of product and service revenue, as adjusted. This non-GAAP financial measure allows management to view gross margin percentage as if revenue had been fully recognized upon invoicing. We believe that these non-GAAP measures, when taken together with our GAAP financial measures, allow us and our investors to better evaluate short-term and long-term profitability trends.
While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These measures are not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation. 
Plug Power Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
   Twelve months ended December 31, 
  2012 2011
 Cash Flows From Operating Activities:     
 Net loss   $ (31,862)  $ (27,454)
 Adjustments to reconcile net loss to net cash used in operating activities:     
 Depreciation   2,070  2,132
 Amortization of intangible asset   2,306  2,323
 Loss on disposal of property, plant and equipment   52  309
 Loss on sale of leased assets   20  --
 Stock-based compensation   2,002  1,452
 Gain sale of leased assets   --  (673)
 Realized loss on available-for-sale securities   --  22
 Change in fair value of warrant liability   (4,845)  (3,447)
 Changes in assets and liabilities that provide (use) cash:     
 Accounts receivable   9,368  (9,193)
 Inventory   (1,295)  1,438
 Prepaid expenses and other current assets   (94)  (310)
 Note receivable   (571)  --
 Accounts payable, accrued expenses, product warranty reserve and other liabilities   914  (1,101)
 Deferred revenue   1,770  1,192
 Net cash used in operating activities   (20,165)  (33,310)
 Cash Flows From Investing Activities:     
 Purchase of property, plant and equipment   (78)  (1,326)
 Restricted cash   --  525
 Proceeds from sale of leased assets   --  673
 Proceeds from disposal of property, plant and equipment   64  47
 Proceeds from maturities and sales of available-for-sale securities   --  10,399
 Net cash (used in) provided by investing activities   (14)  10,318
 Cash Flows From Financing Activities:     
 Purchase of treasury stock   --  (158)
 Proceeds from issuance of common stock   17,192  22,584
 Stock issuance costs   (1,402)  (1,891)
 Proceeds (repayment) from borrowings under line of credit   (2,024)  5,405
 Proceeds from long term debt   2,105  --
 Principal payments on long-term debt   (170)  (10)
 Net cash provided by financing activities   15,701  25,930
 Effect of exchange rate changes on cash   1  (36)
 (Decrease) increase in cash and cash equivalents   (4,477)  2,902
 Cash and cash equivalents, beginning of period   13,857  10,955
 Cash and cash equivalents, end of period   $ 9,380  $ 13,857
CONTACT: Media & Investor Relations Contact:         Gerard L. Conway, Jr.         Plug Power Inc.         Phone: (518) 782-7700

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