NEW YORK (TheStreet) -- Micro-cap Plug Power (PLUG) soared 60.6% to $1.27 on Wednesday and early morning trading on Thursday reveals it hasn't run out of juice yet. The company, which develops modern fuel cell technology, is in hot demand after management provided a positive business update during a conference call.
By the end of the fourth quarter ended in December, the company said it expects to book between $30 and $40 million in revenue, far exceeding the $1 million achieved in the year through to April. The boost in sales will be the result of several deals expected to close shortly with some of its largest customers. Management said the new business will allow the company to turn a profit next year, the first time since its initial public offering in 1999.
"We expect a deal to be signed soon for 3 to 6 sites, which would include 750 to 1,500 units. These units will be deployed over a 2-year period, include a 5-year service agreement, and ... provide recurring revenue stream, not only for service, but for hydrogen infrastructure and hydrogen. A typical turnkey deal that Plug Power will provide will generate between $8 million to $12 million in revenues," said CEO Andrew J. Marsh during the company's end-of-year conference on Wednesday.
The Latham, N.Y.-based business said in an accompanying statement that it needs to ship 3,000 units in 2014 to generate earnings before interest, taxes, depreciation and amortization to break even. Marsh said its facility currently has the resources to manufacture 10,000 units a year and generate $100 million in sales.