Ballard Power Systems announced its consolidated financial results for the first quarter ended March 31, 2014 were led by gross margin of 25%, a 1-point improvement, cash operating costs of $6.3 million, a reduction of 23%, adjusted EBITDA of ($1.8) million, an improvement of 60%, total fuel cell product and service revenues of $14 million, an increase of 13%, and net income of ($3.8) million or ($0.03) per share, improvements of 52% and 61%, respectively. The company also confirmed its full year guidance for revenue growth of approximately 30% and approximately break-even Adjusted EBITDA.
John Sheridan, President and CEO said, "Our Q1 results reflect continued improvement in key metrics, consistent with our business outlook and full-year guidance for 2014. Top line revenue grew 13% year-over-year and, on the bottom line, we achieved a 23% reduction in cash operating costs and a 60% improvement in Adjusted EBITDA. We also strengthened our liquidity position, ending Q1 with cash reserves of $41.6 million, due primarily to the exercise of warrants related to our 2013 equity financings."
Mr. Sheridan added, "Also, after the quarter we were pleased to close a strategic transaction with United Technologies Corporation, giving Ballard a commanding industry position in fuel cell intellectual property and strengthening our ability to grow shareholder value."
Under the agreement, Ballard has acquired UTC's fuel cell IP portfolio, consisting of approximately 800 patents and patent applications as well as patent licenses, invention disclosures and know-how. Ballard and UTC have also formed a strategic alliance to focus on IP licensing and other market opportunities for Fuel Cell Products and Engineering Services.