Plug Power Inc NASDAQ:PLUG released its latest quarterly earnings report this morning, posting adjusted losses of 4 cents per share on $17.3 million in revenue—a three-fold increase. Analysts had been expecting losses of 4 cents per share on $16.7 million in revenue. Net income for the quarter was 2 cents per share, compared to last year’s net loss of $9.3 million or 14 cents per share. In the same quarter a year ago, the company reported $7.5 million in revenue,
Breaking down Plug Power’s earnings report
The fuel cell system provider reported that its revenue consisted of $12.6 million in product revenue, $4.4 million in service revenue and $.3 million in research and development contract revenue. Total cost of revenue for the quarter was $17.1 million, including $10.4 million in costs for product revenue, $5.9 million in costs for service revenue and $.8 million in costs for research and development contract revenue.
Plug Power Inc NASDAQ:PLUG shipped 687 of its GenDrive fuel cell units in the second quarter to a number of customers, including Central Grocers, Wal-Mart Stores, Inc. NYSE:WMT, and The Procter & Gamble Company (NYSE:PG). The company’s gross margin on its GenDrive product was 17%.
Updates on Plug Power’s business
During the quarter, Plug Power Inc NASDAQ:PLUG deployed its first complete GenKey site for Wal-Mart at the retail chain’s Pottsville, Penn. Distribution center. Because of that successful deployment, the big box retailer added another site in Sterling, Ill. to its original contract, which was for six sites.
Plug Power also reported that it secured deals for its GenDrive and GenKey systems with Volkswagen, Honda, Mercedes-Benz and BMW. Management believes that the auto manufacturing market offers a number of opportunities for business around the globe.
“Activity in the second quarter has demonstrated the value proposition of the GenKey hydrogen and fuel cell solution at customer sites, namely Walmart,” said Plug Power CEO Andy Marsh said in a statement. “Success has resulted in positive gross margins for GenDrive, customer confidence in our ability to deliver on our GenKey services, and driven our ability to expand into new markets.”