Boston, MA 06/04/2014 (wallstreetpr) – Diversified utility energy company, FuelCell Energy Inc (NASDAQ:FCEL) announced a wider net loss for the second quarter hurt by weak margin and lower revenue. The quarterly loss, as well as revenue, also failed to meet the Wall Street analysts’ estimations.
2Q Results
The FuelCell Energy Inc (NASDAQ:FCEL) suffered a net loss of $16.6 million or a loss of 7 cents a share for the latest second quarter. On an adjusted basis, net loss amounted to $10.7 million or a loss of 4 cents a share, which is wider than the net loss of $8.2 million or a loss of 4 cents a share in the year-ago quarter. On average, analysts from the Street predicted the company to incur a loss of 3 cents a share.
Total revenues for the second quarter slipped to $38.3 million from $42.4 million in the previous year quarter. This is also lower than the Street expectations of $45.18 million for the latest period.
While product sales fetched revenues of $27.71 million, down from $34.38 million, revenue from service agreements and license increased to $7.18 million from $4.11 million in the year earlier quarter. Revenue from advanced technologies contract skid to $3.39 million from $3.95 million in the prior year period.
FuelCell Energy Inc (NASDAQ:FCEL) said that it has been awarded a contract to construct two fuel cell power plants to produce 5.6 MW once the plant is completed, which is expected next year.
The company’s gross margin slipped to 4.2% from 5.5% in the year-ago quarter, as a result, of lower margin power plant revenue during the latest quarter compared to the last year’s higher margin revenue from power plant.
Back Log
FuelCell Energy Inc (NASDAQ:FCEL) indicated that it had a backlog of $146.6 million from product sales while the service backlog was $181.9 million. Its advanced technologies contracts backlog amounted to $14.3 million.
Outlook For Second Half
Moving ahead, FuelCell Energy Inc (NASDAQ:FCEL) said that it is expecting to generate average quarterly revenues between $50 and $60 million in the second half with the existing production level.
