News

Ballard Claims 114% Top Line Growth and Bottom Line Improvement of 49%

August 01, 2013 by Jeff Shepard

Ballard Power Systems consolidated financial results for the second quarter ended June 30, 2013 included revenue of $14.6 million (note: all monetary amounts are in US Dollars), up 114% compared with Q2 of 2012. This growth was driven primarily by positive performance of the Telecom Backup Power and Engineering Services markets. Gross margin in the current period was 22%, an improvement of 18-points year-over-year. Adjusted EBITDA improved 49% to -$3.3 million compared with -$6.3 million for Q2 of 2012, driven by the top line growth in tandem with the improvement in gross margin (Adjusted EBITDA adjusts EBITDA for stock based compensation expense, transactional gains and losses, asset impairment charges, finance and other income, and acquisition costs.).

John Sheridan, President and CEO said, “The positive trend reflected in our Q2 results is evidence of progress with our strategy to re-align resources in order to accelerate the Company’s two key growth drivers, Telecom Backup Power and Engineering Services, while positioning for broader value creation in development stage markets.”

Revenue break out for the current period compared with Q2 of 2012 includes: Telecom backup power, $4.3 million, an increase of 363%; Engineering services, $5.7 million, an increase of 87%; Material handling, $1.5 million, a decrease of 27%; Development-stage markets, $3.1 million, an increase of 296%.

Ballard claims to have demonstrated advancement of its strategy to position for broader value creation, with particular focus on opportunities in China and South Africa. Specifically, on May 28 Ballard announced an MOU for an Engineering Services program to support Azure Hydrogen’s planned China fuel cell bus initiative. In addition, the Company’s development work on a new low cost, continuous power system has progressed and a public commitment of support was announced by the South African Government.