FuelCell Energy, the maker of high-temperature fuel cells for clean energy generation, reported a narrower loss in the fiscal fourth quarter. However, sales declined more than expected due to a drop in product revenue.
Financial Results
In the quarter ended on October 31, FuelCell Energy recorded a loss of $30.4 million, compared to a loss of $42.5 million in the same quarter the previous year. On a per-share basis, the loss attributable to common shareholders was 7 cents, down from 11 cents in the year-ago quarter. Analysts had predicted an 8 cent loss per share.
Quarterly revenue dropped by 43% to $22.5 million, falling short of analyst forecasts of $25 million. The decrease in revenue was primarily driven by lower product sales, while generation revenue showed some consistency.
Factors behind the Narrowing Loss
FuelCell attributed the narrowing of its loss to the fact that product revenue recognized during the quarter did not incur any associated costs of goods sold. Additionally, generation costs of sales were lower due to a derivative gain of $4.1 million from mark-to-market accounting and reduced impairment charges. However, these improvements were partially offset by a lack of module sales during the quarter.
For more information, please contact FuelCell Energy directly.
