Boston, MA, 03/18/2014 – The stocks of Plug Power Inc (NYSE:PLUG), a New York based company, which focuses on niche market of fuel-cell-powered forklifts, is on a rise. The company has become the battleground for speculation between shortsellers and speculators. Recently, the company announced its fourth quarter –ended and results for FY2013, where it reported a loss but that has not stop the stock to see a roller coaster period.
Several companies in the domain like Fuel Cell Energy (FCEL), ZBB Energy (ZBB), Ballard Power (BLDP), all with a history of losses, have seen a rise in the stock price. But none has met the rally of Plug Power, which has increased 982% in the past six months. The stock last closed at $6.51, down by 0.20 points (2.98% decrease).
Reason for the power packed performance
According to the Andy Marsh, CEO of the company which has been making losses for past some years would be making a profit this year as the orders have quadrupled and production costs would decline. The company is expecting orders of more than $150 million this year. Costs have declined by 10% to 12% a year and would continue to decrease as per the CEO.
There was a rise in fourth quarter product sales. Maintenance orders were received from customers like Wal-Mart Stores, Inc. (NYSE:WMT), The Kroger Co. (NYSE:KR), BMW and Mercedes-Benz. These orders were received as the company discussed its plans to provide hydrogen to customers and revealed its undergoing negotiations for new-multi site deals.
According to Marsh, the revenue for the year 2014 would double to $70 million from $26.6 million in 2013. The company has already surpassed its goal for Q1 by signing a multi-site, multi-year GenKey contract with Walmart.
Plug Power announces Q4 and annual results for FY2013
Total revenue for the Q4 of FY2013 was $8.0 million, while the total revenue for the whole year stood at $26.6 million. The total cost of the revenue for Q4 and the year ending 2013 were $11.2 million and $37.8 million respectively. Selling, general and administrative (SG&A) expenses for Q4 and the year ended 2013 were $3.5 million and $12.3 million respectively. Net loss for the Q4 and year ended 2013 was $28.9 million and $62.7 million on a basic and diluted basis respectively.