Subj: H Power Corp. Reports 47% Increase in First Quarter Revenues
H Power Corp. Reports 47% Increase in First Quarter Revenues
CLIFTON, N.J.--(BUSINESS WIRE)--Oct. 4, 2000--
Company Completes Initial Public Offering; Introduces New Fuel
Cell System and Will Supply Ball Aerospace With Fuel Cell
H Power Corp. (NASDAQ:HPOW), a leading fuel cell development
company, today reported financial results for the first quarter ended
August 31, 2000.
Net revenues for the quarter were $1,214,000, a 47 percent
increase from $825,000 reported for the first quarter of last year.
The net loss attributable to common stockholders was $4,045,000, or 10
cents per share, compared with $1,513,000, or 5 cents per share a year
ago. Revenues from product sales were $652,000, an increase from
$17,000 for the same period last year. Revenues from contracts were
$562,000, a decrease of 30 percent from the same period last year,
reflecting the company's emphasis on commercialization.
Cash and cash equivalents at the end of the quarter were
$110,694,000, compared with $11,257,000 for the fiscal year ended May
31, 2000. Working capital was $110,907,000, up from $13,213,000 at May
31, 2000, and shareholders' equity rose to $111,353,000 at the end of
the quarter from a deficit of $6,938,000 at May 31, 2000.
H Power's initial public offering (IPO) raised $104.2 million for
the company on August 9, 2000.
"First quarter results are consistent with our strategic plan," H.
Frank Gibbard, chief executive officer of H Power Corp., commented.
"Net losses were primarily the result of planned increases in research
and development, marketing and selling and general administrative
expenses. This is not unusual for the fuel cell industry, which is
characterized by significant amounts of capital investment, strong
competition and intense ongoing technical development.
"Our successful IPO strengthened H Power's capital base and will
further expedite our commercialization of fuel cells," continued
Gibbard. "We recently introduced the PowerPEM(R) PS250, a 250 watt
mobile and rack-mounted system that may be used either as a primary or
backup power source for a variety of applications. In addition, we
made significant progress on the commercialization front by signing a
memorandum of understanding with Ball Aerospace to supply fuel cells
for use in their military field equipment. We are already selling
portable units and expect to start production of stationary units in
2001, as planned."
H Power's goal is to establish fuel cells as a major alternative
energy source and to become the leading commercial provider of fuel
cells and systems. The company focuses primarily on existing markets
for stationary power products such as the rural residential market.
Going forward, the company intends to strengthen and expand strategic
relationships, penetrate the markets for portable and mobile fuel cell
products and develop low-cost, state-of-the-art manufacturing
capabilities. In addition, H Power plans to capitalize on its
technological advantages over other fuel cell developers and other
potential alternative power sources, and develop and acquire advanced
complementary technologies.
About H Power Corp.
H Power Corp. is a leading fuel cell development company and one
of the first providers to complete a commercial sale of a
proton-exchange membrane (PEM) fuel cell system. PEM fuel cells
generate electricity efficiently and cleanly from the electrochemical
reaction of hydrogen and oxygen. Hydrogen is typically derived from
conventional fuels such as natural gas or pro`ane, and oxygen is drawn
from the air. H Power's fuel cells are designed to provide electricity
for a wide range of stationary, portable and mobile applications
including residential cogeneration products for rural, remote homes,
and backup power units for mobile applications.
For additional information, please visit our website at
www.hpower.com
H Power will hold a conference call discussion of first quarter
results today, October 4 at 11 am eastern time. To listen, please call
(877) 841-0748. A replay of the call will be available until October
11. To listen to the replay, please call (800) 642-1687, and use the
reference code No. 529235.
Certain expectations and projections regarding the future
performance of H Power discussed in this news release are
forward-looking and are made under the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995. These expectations
are based on currently available competitive, financial and economic
data along with the Company's operating plans and are subject to
future events and uncertainties. Management cautions the reader that
the following factors, amongst others, may cause H Power's plans to
differ or results to vary from those expected, including the impact of
competition, pricing, market demand and marketplace acceptance, and
other risks set forth from time to time in H Power's filings with the
Securities and Exchange Commission, including, but not limited to the
risks set forth in H Power's Registration Statement on Form S-1. H
Power undertakes no ¯bligation to publicly release the results of any
revisions to forward-looking statements, which may be made to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. The events highlighted herein
should not be assumed to be items that could affect the future
performance of the Company.
H Power Corp.
First Quarter Financial Results (unaudited)
Three Months Ended
Income Statement Data: August 31,
2000 1999
Net revenues $ 1,214,000 $ 825,000
Loss from operations (4,483,000) (1,459,000)
Net loss (4,004,000) (1,460,000)
Net loss attributable
to common shareholders (4,045,000) (1,513,000)
Loss per share, basic and diluted ($ 0.10) ($ 0.05)
Weighted average shares outstanding 41,702,000 29,396,000
Balance Sheet Data: August 31, 2000 May 31, 2000
Cash and cash equivalents $110,694,000 $11,257,000
Working capital 110,907,000 13,213,000
Total assets 116,771,000 18,650,000
Long-term debt 68,000 67,000
Minority interest 0 5,000,000
Mandatory redeemable preferred stock 0 15,327,000
Total stockholders' equity (deficit) 111,353,000 (6,938,000)
CONTACT:
H Power Corp.
William L. Zang, CFO x 424
Thomas Michael, VP x 500
973/249-5444
or
The Dilenschneider Group
Robert Valdmanis - Media
Ken Di Paola - IR
212/922-0900 |
