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FuelCell Energy Shares Charge Higher After Posting 43% Growth in Q3 Revenue

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Shares of FuelCell Energy Inc. traded 15% higher after the company reported Q3/21 financial results highlighting positive YoY increases in revenue and gross margins driven by a 102% increase in revenues derived from licenses and service agreements.

Integrated fuel cell company FuelCell Energy Inc. (FCEL:NASDAQ), which develops and provides innovative fuel cell technology using its proprietary, state-of-the-art fuel cell platform in order to enable and promote clean energy, today announced financial and operating results for its third quarter 2021 ended July 31, 2021.

Fuelcell Energy's President and CEO Jason Few commented, "FuelCell Energy delivered higher revenue in the third fiscal quarter, both sequentially compared to the second fiscal quarter and year over year. We are pleased by the continued execution of our project backlog and the advancement of our strategic agenda in terms of infrastructure, solutions and talent to support our ability to achieve our long-term goals…We made progress in advancing our inflight projects and combined with an increase in our investment in commercial capabilities and research and development activities, we believe we are positioning FuelCell Energy for long-term growth and sustainable commercial success."

CEO Few continued, "We are almost two years into our Powerhouse business strategy, and we continue to make progress…We recently announced additions to our team, significantly expanding our sales and marketing presence with the goal of enhancing customer engagement and effectiveness."

"We increased our investment in innovation and are making progress towards the availability of our Advanced Technologies solutions, including distributed hydrogen, long duration energy storage, and hydrogen production via our solid oxide platform. These offerings will complement our commercially available carbonate fuel cell platforms that provide a scalable solution to deliver against the increasing requirements of clean, distributed power and hydrogen generation to strengthen and supplement the grid power and enable the hydrogen economy," Few added.


The company reported that revenue in Q3/21 increase d by 43% to $26.8 million, compared to $18.7 million in Q3/20. The firm advised the YoY increase was mainly attributable to a $7.2 million increase in service agreements and license revenues since more module exchanges occurred during the quarter versus the Q3/20. In Q3/21, service agreements and license revenues increased significantly by 102% to $14.3 million, versus $7.1 million in Q3/20.

In addition, the firm grew generation revenues by 32% to $6.2 million in Q3/21, up from $4.7 million in Q3/20. The gains win generation revenues were attributed to a combination of higher operating output of the generation fleet portfolio, investments in maintenance activities and an increase in the overall fleet size.

The company posted a gross profit of $1.1 million in Q3/21, compared to a gross loss of $3.1 million in Q3/20.

Fuelcell Energy posted a lower net loss of $12.0 million in Q3/21, versus a net loss of $15.3 million in Q3/20. The improved totals were due to higher gross margins and lower interest expenses from borrowings under the Orion credit facility.

The firm reported a net loss per share of $0.04 in Q3/21, compared to a net loss of $0.07 per share in Q3/20.

The firm noted that it currently has a strong cash position with cash and cash equivalents on its balance sheet of $494.0 million as of July 31, 2021, compared with $192.1 million on October 31, 2020.

Fuelcell Energy also discussed highlights of recent business activities at the company. The firm stated that "it achieved mechanical completion, executed the interconnect agreement in July, and commenced the process of commissioning the 7.4 MW platform at the U.S. Navy Submarine Base in Groton, Conn." The company is proud that its platforms are able to increase grid stability and support the navy's efforts to fortify its base energy supply with clean reliable power.

The firm noted also that its products were deployed for use in a 1.4 MW platform at a wastewater treatment facility in San Bernardino, Calif. that opened commercially in July 2021.

The company is also progressing with its work at an on-site civil construction of a 7.4 MW project in Yaphank, N.Y. and a 14.8 MW project in Derby, Conn. The Derby site is slated for placement for five of the firm's SureSource 3000 fuel cell systems that will be installed on engineering platforms along the banks of the Housatonic River.

In addition, the company is developing a 2.3 MW trigeneration platform with Toyota at the Port of Long Beach, Calif. The project is currently being designed to produce electricity, hydrogen, and hot water.

FuelCell Energy is a Danbury, Conn.-based provider of sustainable clean energy technologies that are geared toward solving critical challenges pertaining to production and distribution of responsible and sustainable energy. The company uses its proprietary fuel cell technology platforms to offer sustainable products and solutions for businesses, utilities, and government municipalities.

The firm stated that it develops, engineers, deploys, services, and manages turn-key distributed power generation solutions for the entire life of the power plant. The firm's systems can be easily integrated with other intermittent energy sources such as solar and wind turbines.

Fuelcell Energy began the day with a market cap of around $1.8 billion with approximately 322.5 million shares outstanding and a short interest of about 16.1%. FCEL shares opened 10% higher today at $6.20 (+$0.58, +10.32%) over yesterday's $5.62 closing price. The stock has traded today between $6.12 to $7.54 per share and is currently trading at $6.46 (+$0.84, +14.95%).


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