Total revenue for the second quarter of 2014 was $17.3 million, comprised of $12.6 million of product revenue, $4.4 million of service revenue and $0.3 million of research and development (R&D) contract revenue. This compares to total revenue of $7.5 million in the second quarter of 2013, which was comprised of $5.6 million of product revenue, $1.5 million of service revenue and $0.4 million of R&D contract revenue.
The Company shipped 687 units during the second quarter of 2014 compared to 246 units in the second quarter of 2013.
Total cost of revenue for the second quarter of 2014 was $17.1 million, comprised of $10.4 million of cost of product revenue, $5.9 million of cost of service revenue and $0.8 million of cost of R&D contract revenue. This compares to total cost of revenue of $9.5 million in the second quarter of 2013, which was comprised of $5.3 million of cost of product revenue, $3.6 million of cost of service revenue and $0.6 million of cost of R&D contract revenue.
R&D expenses for the second quarter of 2014 were $1.4 million compared with $0.8 million for the second quarter of 2013. Selling, general and administrative (SG&A) expenses for the second quarter of 2014 were $4.8 million compared with $3.2 million for the second quarter of 2013.
Net income for the second quarter of 2014 was $3.8 million, or $0.02 per share on a basic and diluted basis. Included in the net income for the second quarter of 2014 was a gain related to the change in fair value of previously issued common stock warrants of $9.6 million. Excluding this item, adjusted net loss for the second quarter of 2014 was $5.8 million, or $0.04 per share on a basic and diluted basis.
This compares to net loss for the second quarter of 2013 of $9.3 million, or $0.14 per share on a basic and diluted basis. Included in the net loss for the second quarter of 2013 was a charge related to the change in fair value of previously issued common stock warrants of $5.8 million. Excluding this item, adjusted net loss for the second quarter of 2013 was $3.5 million, or $0.05 per share.
Cash and Liquidity
Plug Power had cash and cash equivalents of $168.6 million and net working capital of $190.4 million at June 30, 2014. This compares to $5.0 million and $11.1 million, respectively, at December 31, 2013.
Please see the tables at the end of this press release for a reconciliation of net income (loss) to adjusted net loss.
Plug Power has scheduled a conference call today at 10:00 am ET to review the Company's results for the second quarter of 2014. Interested parties are invited to access the call:
• Toll-free: 877.407.8291
• Webcast (including presentation slides): https://event.webcasts.com/starthere.jsp?ei=1041468
• Webcast (audio only): http://www.media-server.com/m/p/pjr65sry
A playback of the call will be available online for a period following the event.
About Plug Power Inc.
The architects of modern fuel cell technology, Plug Power is revolutionizing the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders, including Walmart, Sysco, Procter & Gamble, and Mercedes-Benz, forged the path for Plug Power’s innovative GenKey hydrogen and fuel cell system solutions. With more than 5,000 GenDrive units deployed to material handling customers, accumulating over 20 million hours of runtime, Plug Power manufactures tomorrow’s incumbent power solutions today. Additional information about Plug Power is available at www.plugpower.com.
Safe Harbor Statement
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. (“PLUG”), including but not limited to statements about PLUG’s forecast of financial performance, order bookings, product shipments, products and services, business model, strategy and growth opportunities, including global expansion and hydrogen fuel, competitive position, and customer expansion, including Walmart, Volkswagen, BMW, Mercedes-Benz and Honda. You are cautioned that such statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will have been achieved. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. In particular, the risks and uncertainties include, among other things, the risk that we continue to incur losses and might never achieve or maintain profitability; the risk that we will need to raise additional capital to fund our operations and such capital may not be available to us; the risk that our lack of extensive experience in manufacturing and marketing products may impact our ability to manufacture and market products on a profitable and large-scale commercial basis; the risk that unit orders will not ship, be installed and/or converted to revenue, in whole or in part; the risk that pending orders may not convert to purchase orders, in whole or in part; the risk that a loss of one or more of our major customers could result in a material adverse effect on our financial condition; the risk that a sale of a significant number of shares of stock could depress the market price of our common stock; the risk that negative publicity related to our business or stock could result in a negative impact on our stock value and profitability; the risk of potential losses related to any product liability claims or contract disputes; the risk of loss related to an inability to maintain an effective system of internal controls or key personnel; the risks related to use of flammable fuels in our products; the cost and timing of developing, marketing and selling our products and our ability to raise the necessary capital to fund such costs; the ability to achieve the forecasted gross margin on the sale of our products; the risk that our actual net cash used for operating expenses may exceed the projected net cash for operating expenses; the cost and availability of fuel and fueling infrastructures for our products; market acceptance of our products, including GenDrive systems; the volatility of our stock price; our ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of components and parts for our products; our ability to develop commercially viable products; our ability to reduce product and manufacturing costs; our ability to successfully expand our product lines; our ability to successfully expand internationally; our ability to improve system reliability for our GenDrive systems; competitive factors, such as price competition and competition from other traditional and alternative energy companies; our ability to protect our intellectual property; the cost of complying with current and future federal, state and international governmental regulations; risks associated with potential future acquisitions; and other risks and uncertainties referenced in our public filings with the Securities and Exchange Commission. For additional disclosure regarding these and other risks faced by PLUG, see disclosures contained in PLUG's public filings with the Securities and Exchange Commission (the “SEC”) including, the “Risk Factors” section of PLUG’s Annual Report on Form 10-K for the year ended December 31, 2013. You should consider these factors in evaluating the forward-looking statements included in this presentation and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof, and PLUG undertakes no obligation to update such statements as a result of new information.
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Plug Power Inc.