Product and Trading Update (2266Z)
January 11 2011 - 2:00AM
UK Regulatory
TIDMIDA
RNS Number : 2266Z
IdaTech PLC
11 January 2011
For immediate release 11 January 2011
IdaTech plc
("IdaTech" or "the Company")
Product and Trading Update
IdaTech plc ('IdaTech' or the 'Company') (AIM IDA.L), a global
leader in the development and manufacture of clean and reliable PEM
fuel cell products for critical backup power markets, today
provides a product and trading update for 2010. The Company will
announce its preliminary results for the year ended 31 December
2010 in late March 2011.
Successful New Product Shipments
IdaTech commenced shipments of its new generation methanol/water
fueled product, the ElectraGenTM ME, in December. This is an
exciting and important development for IdaTech as it provides a key
foundation in its Path to Profitability Strategy. This family of
products incorporates substantial cost and performance improvements
which can be sold profitably in significantly higher volumes than
previous generation products. These improvements offer customers a
compelling value proposition against diesel generators whilst
yielding positive margins for IdaTech.
Trading Update
During 2010, IdaTech sold over 350 systems 280 of which were
sold at a positive gross contribution margin (2009 9 units). During
2009 445 systems were sold, which included 300 loss making sales to
ACME Telepower for the Indian market. IdaTech's next generation
systems, the ElectraGenTM H2 and the ElectraGenTM ME, accounted for
280 of the 2010 unit sales. The remainder of the sales consisted of
now discontinued, earlier generations of its products. The order
pipeline at the end of the year was $1.6 million, representing 84
units, primarily all higher value reformed systems (2009 $0.8
million or 108 hydrogen systems).
Revenue from product sales for the year was $4.1 million with an
improved gross margin attributable to product sales over 2009.
Revenue for 2009 was $4.5 million. 2010 was, as expected, the
transition year from previous generation, loss making systems to
new generation, profitable products. During the year, IdaTech
received orders for over 70 ElectraGenTMME systems, 20 of which
were shipped before the end of the year. The orders included a
number of single unit orders for customer testing and validation,
the pre-cursor to larger orders as well as two large commercial
orders.
Overheads are expected to be lower than in 2009. This reduction,
coupled with the improvement in product margin, reduced the cash
usage (excluding the acquisition of the LPG off grid & backup
power stationary product lines of Plug Power Inc) to $22 million
(2009 $24.8 million).
LPG Off Grid & Backup Power Stationary Product Lines of Plug
Power Inc. ("Plug")
In October 2010, IdaTech completed the purchase of Plug's off
grid Liquid Petroleum fueled product line, including most of the
assets of the business and license to all relevant intellectual
property for a total consideration of $5 million. The Company
believes that by combining IdaTech's technical knowhow and
telecommunications market position together with a decade of Plug's
investment and development into the product, IdaTech can access an
estimated $1 billion market for telecommunications power generation
in areas where there is no electric grid service. The acquisition
was funded by the Investec Group through an extension to the
existing credit line, in addition to the already committed
funding.
Outlook
With the launch of the ElectraGenTM ME, the Company believes
demand will increase over the next year. The rate of this increase
will be dictated by the speed with which customers certify the new
products, but initial signs remain encouraging. Additionally, with
the transition from previous generation products to new, profitable
ones, the Company expects gross margin to continue to improve.
For further information please contact:
IdaTech plc +1 541 383 3390
Harol Koyama, Chief Executive
Officer
James Cooke, Chief Financial Officer
Numis Securities Limited +44 (0) 20 7260 1000
Michael Meade
Buchanan Communications +44 (0) 20 7466 5000
Charles Ryland / Catherine Breen
About IdaTech
IdaTech plc is an advanced fuel cell products company which is
operationally headquartered in Bend, Oregon, USA and is listed on
AIM with the ticker code IDA. IdaTech designs, develops, and
manufactures extended run backup power fuel cell products for
Telecom applications requiring up to 15 kW of backup power.
IdaTech's unique PEM fuel cell technology provides solutions for a
wide range of applications to directly support efforts towards
sustainable energy. IdaTech's portfolio of industry-certified fuel
cell products are based on the company's fuel processing,
purification and fuel cell system integration capabilities. With
the support of strategic partners and customers, the company's
extended run backup power products are being deployed worldwide for
stationary applications.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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