Fuel Cell Energy
more than doubled its second-quarter loss, despite a rise in revenue, and missed analysts' per-share estimates by 11 cents. The company cited increased operating costs and lowered government funding.
In the quarter ended April 30, the company had a loss of $21 million, or 53 cents a share, compared with a loss of $8.9 million, or 23 cents a share, in the same period last year. Analysts expected the company to lose 42 cents a share.
Shares of the company were falling about 10% in morning trading to $8.20 on the news.
Sales rose 4% to $8.9 million from last year's $8.6 million. Analysts, however, expected total revenue of $12.5 million. The company said increased production and shipment of Direct FuelCell (DFC) power plants and fuel cell components contributed to the rise in revenue, which was partially offset by lower revenue on certain government contracts.
The company said its quarterly loss reflected its investment in the standardization of DFC power plants, manufacture and delivery of its products, and reduced funding on certain government contracts. Increases in operating costs, including employee expenses, severance costs, depreciation related to plant expansion, information systems and infrastructure, also contributed to the loss.
Fuel Cell said it delivered efficient and ultra-clean DFC300A power plants to three customer sites during the second quarter and expects to ship eight more DFC power plants through the summer.