Boston, MA 06/04/2014 (wallstreetpr) –From its 2Q2014 financial results, FuelCell Energy Inc (NASDAQ:FCEL) appears to be walking a tightrope. The company had little to show for the three months trading period except a bigger loss than anyone wanted.
However, the results appear to expose the fuel-cell company for what it is not, at least if the company’s senior leadership is to be believed.
In the race to reduce carbon dioxide impact on the environment, renewable energy projects are fetching big investments. In addition to the benefit of reducing environmental impact, renewable energy is a promising investment opportunity and so FCEL and its peers in the fuel-cell technology business are vying for big business.
FuelCell Energy Inc (NASDAQ:FCEL) provides a different kind of renewable energy – fuel-cell power. The company manufactures fuel-cell power plants and its systems produce electricity from natural gas through a chemical reaction. The company boasts that its system provides ultra-clean energy, and it believes that is an attribute that will earn its bigger business opportunities in the long run.
More than is apparent
According to the company’s chief executive officer, Chip Bottone, FuelCell Energy Inc (NASDAQ:FCEL) is actively advancing in North America, Europe and Asia markets, thanks to its strong sales teams and business plan. In addition to market advancement, the company is also witnessing widespread appreciation of its energy technology, and that gives the senior leadership the confidence about a better tomorrow.
As such, Mr. Bottone expects the balance of fiscal 2014 to show great improvement in FuelCell’s top line. The CEO expects an average of $50 to $60 million for the second two quarters of the year. That expectation is based on the company’s production plan and new-signed contracts.
In view of the above, it seems 2Q exposed FuelCell Energy Inc (NASDAQ:FCEL) for what it is not and does not wish to become – a perpetual loss-maker.
Losses are part of the story
FuelCell Energy Inc (NASDAQ:FCEL) has not seen a profit in its fuel-cell business and 2Q just complicated the picture. The loss in the latest quarter widened beyond expectation to hit $15.8 million or $0.07 per share. That compared with a loss of $7.4 million or $0.04 per share in the corresponding quarter a year ago.
But the trouble in 2Q was not limited to the bottom-line. The company saw its revenue drop to $38.3 million in the latest quarter from $42.4 million in the same period a year earlier.
