Hydrogenics Provides Market Update and Confirms 2014 Outlook
April 04 2014 - 6:30AM
Hydrogenics Corporation (Nasdaq:HYGS) (TSX:HYG),
("Hydrogenics" or "the Company") a leading developer and
manufacturer of hydrogen generation and hydrogen-based power
modules, today announced that customer-driven timing of deliveries
have impacted revenue for the first quarter of 2014. Hydrogenics
expects to realize between $7.0 and $7.5 million of revenue for the
three months ended March 31, 2014.
However, the Company re-iterates the previously announced 2014
outlook that it will exceed $50 million in revenue and will surpass
break-even Adjusted EBITDA1 for the year. This view is
supported as follows:
- The Company finished 2013 with $57 million in backlog;
- Approximately $40 million of the current contracted backlog
will be realized as revenue in calendar 2014; and
- Other sales pipeline opportunities closing into backlog in the
first and second quarters will have revenue potential for the
second half of 2014.
The most recent analysis of contracted backlog and sales
pipeline indicates that the revenue growth to achieve the targeted
outlook will be predominantly in the second half of 2014 based on
anticipated customer delivery requirements.
Hydrogenics also remains positive on larger scale opportunities
that will provide order intake for 2014 and revenue for 2015 and
future years. The Company has also provided proposals on
multiple energy storage applications for installations in the 5-15
MW class size. The normal gestation on these projects is
typically prolonged since the application is new to utility and
industrial customers. For these larger opportunities it will
not be possible to realize revenue in 2014 but rather will provide
strong growth into 2015 and future years.
1 Adjusted EBITDA is defined as net loss excluding stock based
compensation (both cash settled long term compensation indexed to
share price and share based compensation), other finance income and
expenses, depreciation and amortization. These items are considered
by management to be outside of Hydrogenics' ongoing operational
results. Adjusted EBITDA is a non-IFRS measure and may not be
comparable to similar measures used by other companies.
About Hydrogenics
Hydrogenics Corporation (www.hydrogenics.com) is a globally
recognized developer and provider of hydrogen generation and fuel
cell products and services, serving the growing industrial and
clean energy markets of today and tomorrow. Based in Mississauga,
Ontario, Canada, Hydrogenics has operations in North America and
Europe.
Forward-looking Statements
This release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995, and under applicable
Canadian securities law. These statements are based on management's
current expectations and actual results may differ from these
forward-looking statements due to numerous factors, including: our
inability to increase our revenues or raise additional funding to
continue operations, execute our business plan, or to grow our
business; inability to address a slow return to economic growth,
and its impact on our business, results of operations and
consolidated financial condition; our limited operating history;
inability to implement our business strategy; fluctuations in our
quarterly results; failure to maintain our customer base that
generates the majority of our revenues; currency fluctuations;
failure to maintain sufficient insurance coverage; changes in value
of our goodwill; failure of a significant market to develop for our
products; failure of hydrogen being readily available on a
cost-effective basis; changes in government policies and
regulations; failure of uniform codes and standards for hydrogen
fuelled vehicles and related infrastructure to develop; liability
for environmental damages resulting from our research, development
or manufacturing operations; failure to compete with other
developers and manufacturers of products in our industry; failure
to compete with developers and manufacturers of traditional and
alternative technologies; failure to develop partnerships with
original equipment manufacturers, governments, systems integrators
and other third parties; inability to obtain sufficient materials
and components for our products from suppliers; failure to manage
expansion of our operations; failure to manage foreign sales and
operations; failure to recruit, train and retain key management
personnel; inability to integrate acquisitions; failure to develop
adequate manufacturing processes and capabilities; failure to
complete the development of commercially viable products; failure
to produce cost-competitive products; failure or delay in field
testing of our products; failure to produce products free of
defects or errors; inability to adapt to technological advances or
new codes and standards; failure to protect our intellectual
property; our involvement in intellectual property litigation;
exposure to product liability claims; failure to meet rules
regarding passive foreign investment companies; actions of our
significant and principal shareholders; dilution as a result of
significant issuances of our common shares and preferred shares;
inability of US investors to enforce US civil liability judgments
against us; volatility of our common share price; and dilution as a
result of the exercise of options; and failure to meet continued
listing requirements of Nasdaq. Readers should not place undue
reliance on Hydrogenics' forward-looking statements. Investors are
encouraged to review the section captioned "Risk Factors" in
Hydrogenics' regulatory filings with the Canadian securities
regulatory authorities and the US Securities and Exchange
Commission for a more complete discussion of factors that could
affect Hydrogenics' future performance. Furthermore, the
forward-looking statements contained herein are made as of the date
of this release, and Hydrogenics undertakes no obligations to
revise or update any forward-looking statements in order to reflect
events or circumstances that may arise after the date of this
release, unless otherwise required by law. The forward-looking
statements contained in this release are expressly qualified by
this.
CONTACT: For further information, contact:
Bob Motz, Chief Financial Officer
(905) 361-3660
investors@hydrogenics.com
Chris Witty
Hydrogenics Investor Relations
(646) 438-9385
cwitty@darrowir.com
Hydrogenics (NASDAQ:HYGS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hydrogenics (NASDAQ:HYGS)
Historical Stock Chart
From Apr 2023 to Apr 2024