FuelCell Energy Inc (NASDAQ:FCEL) adding energy to the industry


Dallas, Texas 09/09/2013 (Financialstrend) – FuelCell Energy Inc (NASDAQ:FCEL) reported its Q3 financial results on 4 September. It reported a record $54 million revenue, a record $4.5M gross profit and also record gross-profit margins. This year, the last three running-quarters have seen the gross profit-margin move from a negative to 5.5 percent positive to 8.4percent positive. There was a $6.8M positive swing in gross profit in this period. The SG&A expenses have remained at a steady level in the $9M range, a few hundred less or more. The net loss was $5.8 million but that has been on the decline.

In comparison to the Q2, FuelCell Energy has had an increase of $2.2M gross-profit on $11.26M in higher sales. The SG&A expenses have been flat. This amounts to around 20 percent incremental profit-margin on the sales rises. Based on 20 percent profit-margins for additional increases, the net loss of $5.8M net would swing to a break-even point or become profitable with a $29M rise in sales.

Friday’s trading session

In Friday’s trading session, FuelCell Energy Inc (NASDAQ:FCEL) dropped by 3.68%. The opening price of the shares was $1.39 which touched an intraday high of $1.40 and closed at $1.31. More than 4.22 Million shares were traded in Friday’s session while the average volume of shares traded over 30 days was 1.67 million. The company has a market cap of 251.59 million.

The company

FuelCell Energy Inc (NASDAQ:FCEL) is an integrated fuel-cell company. It is involved in designing, manufacturing, selling, installing, operating and servicing various ultra-clean, stationary fuel-cell power plants that are used in distributed baseload power-generation. Its Direct FuelCell power plants utilize a variety of available fuels to electrochemically produce electricity. This is done with the elimination of the combustion process.

The process that FCEL uses virtually produces no pollutants and is very quiet as well.

In 2012 June, FCEL completed the asset-acquisition of certain fuel-cell assets by FuelCell Energy Solutions, its German subsidiary. This included some fuel-cell manufacturing equipment and fuel-cell component inventory. It has also closed the joint-venture with Fraunhofer IKTS. In 2012 December, it bought Versa Power Systems.