uploads///

FuelCell Energy Management Expects Break-Even at 90 Megawatts

By

Dec. 18 2015, Updated 2:06 p.m. ET

Gross profit

FuelCell Energy’s (FCEL) gross profit totaled $3.1 million in fiscal 4Q15, while it was $6 million in fiscal 4Q14. Its gross profit margin fell from 10.9% in 4Q14 to 6.1% in 4Q15.

FCEL is currently operating with an annual production capacity of 100 megawatts, and the company is selling 70 megawatts per year. According to chief executive officer Chip Bottone, the company will be profitable when it exceeds 90 megawatts of sales per year.

Article continues below advertisement

Operating expenses

The company’s operating expenses for the current period totaled $11 million, while for the same quarter last year it was $10.9 million. It should be noted that administrative and general expenses rose while spending on research and development fell in fiscal 4Q15, compared to last year’s quarter.

FCEL’s depreciation expense was $1.1 million in fiscal 4Q15. FuelCell Energy also continued to lose on a per-dollar basis during the quarter. Its operating margins fell further in the current three-month period due to higher operational costs and low volumes. Its operating margins dwindled from -9.1% in fiscal 4Q14 to -15.2% in fiscal 4Q15. Its adjusted earnings before interest, tax, depreciation, and amortization in fiscal 4Q15 stood at -$6.7 million.

Net loss

The company’s net loss can primarily be attributed to lower revenues from its business segments and increased spending in the quarter. Its net loss totaled $9.7 million, or $0.38 per share, in fiscal 4Q15, compared to $5.5 million, or $0.24 per share, in fiscal 4Q14.

For the year, FuelCell Energy reported that its net loss narrowed to $29.4 million, or $1.33 per share. In 3Q15, alternative energy (PBW) (ICLN) player Plug Power (PLUG) reported losses, while EnerSys (ENS) reported $26 million in net earnings.

Advertisement

More From Market Realist

  • Honeywell sign
    Earnings Report
    CNBC Pro Stocks to Buy Before Q1 Earnings
  • Men walking by Morgan Stanley headquarters
    Financials
    Morgan Stanley’s (MS) Stock Forecast Before Q1 Earnings
  • Carnival cruise ship sailing
    Consumer
    Carnival's (CCL) Stock Forecast Before Q1 Business Update
  • GameStop store
    Consumer
    GME's Earnings Are Coming: Will It Be Mayday for Shorts or WallStreetBets?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.