LATHAM, N.Y., Oct. 26 /PRNewswire-FirstCall/ -- Plug Power Inc.
(NASDAQ: PLUG), a leading provider of clean, reliable on-site
energy, today reported status against 2005 public corporate
milestones and financial results for the quarter ended Sept. 30,
2005. The Company remains on track to achieve its 2005 milestones.
"We are pleased with our progress during the third quarter and year
to date and remain committed to achieving the 2005 milestones that
we established for the Company earlier this year," said Roger
Saillant, Plug Power's President and CEO. Current status against
2005 public corporate milestones: Triple the number of GenCore(R)
orders received to at least 300: * Received 136 GenCore orders
during the quarter bringing the year-to-date total GenCore orders
received to 192. The majority of the orders received this year were
from end users in the targeted telecommunications and utility
market segments. * Secured three new distribution partners for
GenCore: Connect Telecommunications Solutions Inc., Zebotec GmbH
and SmartLink Ltd. will market, distribute and sell Plug Power's
backup fuel cell system to telecommunication providers throughout
Canada; Germany, Austria and Switzerland; and Kuwait, respectively.
More than 75 percent of the Company's year-to-date GenCore orders
have come via Plug Power's channel partners, which currently
provide access to customers across five continents. * Lobbied for a
30 percent fuel cell tax credit of up to $1,000 per kilowatt that
was included in the Energy Policy Act of 2005 and signed into law
by President Bush in August. Available in January 2006, this tax
credit can be used in residential or commercial applications and
specifically includes telecommunications carriers among the
eligible end users. Begin field-testing the next-generation
continuous-run product: Completed commissioning and began testing
the first 10 prototype next- generation GenSys(R) fuel cell systems
at Robins Air Force Base in Georgia. This one-year field trial will
be used to enhance product performance and improve system
reliability throughout the duration of the program. Reduce GenCore
direct material cost by 25 percent from 2004 levels: Remained on
track to reduce GenCore direct material cost by 25 percent from
2004 levels. Year-to-date GenCore direct material cost reduction is
approximately 16 percent. Secure a contract with Honda for Phase
III of the Home Energy Station (HES) and proceed with development
activities: Completed the HES Phase III and fundamental research
and development contracts with Honda R&D during the first
quarter of this year. Plug Power continues to execute and remains
on track against its statement of work with Honda and is preparing
to showcase the third generation design of the HES. Financial
results: During the third quarter, Plug Power improved the
Company's capitalization and strengthened the balance sheet by
adding approximately $70.6 million net cash through the sale of
shares of common stock offered under the Company's existing shelf
registration statement filed with the Securities and Exchange
Commission. As of Sept. 30, 2005 the Company had $110.9 million in
cash, cash equivalents and marketable securities and $105.7 million
in working capital. Net cash used in operating activities for the
third quarter ended Sept. 30, 2005 was $10.7 million, bringing
year-to-date cash used in operating activities to $30.1 million
compared to $25.8 million in 2004 (see attached financial
highlights). In 2005, the Company has increased its direct sales
force focused on accelerating the commercialization of its GenCore
product and has increased product development spending related to
its next-generation GenSys fuel cell system. The Company continues
to expect that net cash used in operating activities will be less
than $40.0 million in 2005. Total revenue for the third quarter
ended Sept. 30, 2005 was $3.9 million compared to $4.6 million for
the third quarter in 2004. Year-to-date total revenue was $10.8
million, compared to $11.6 million in the prior year. The decrease
in revenue is primarily the result of the Company's focus on
selling GenCore, its lower-priced commercial product, and phasing
out sales of its older generation test and demonstration systems.
The Company continues to defer product and service revenue, a
component of total revenue, at the time of sale and to amortize
that revenue over the period of the underlying service and other
contractual obligations. Deferred revenue was $3.4 million at Sept.
30, 2005 compared to $6.5 million at Sept. 30, 2004. Net loss for
the quarter ended Sept. 30, 2005 was $11.9 million, or $0.15 per
share, compared to $11.7 million, or $0.16 per share, for the same
period in 2004. Year-to-date net loss was $35.3 million, or $0.47
per share, compared to $34.9 million or $0.48 per share for the
same period last year. Plug Power has scheduled a conference call
today at 10:00 AM (EDT) to review its third quarter 2005 results.
Interested parties are invited to participate. To listen to the
conference call, please call 617-614-3923 and enter the passcode
PLUG (7584). The live webcast can be accessed by logging onto
http://www.plugpower.com/. A playback of the call will be available
on the Web site for a period following the call. See the attached
financial highlights for the third quarter 2005. About Plug Power
Plug Power Inc. is an established leader in the deployment of
clean, reliable, on-site energy products. More than 500 Plug Power
fuel cell systems have been delivered to customers worldwide in
commercial, public sector, telecommunications, utility and
uninterruptible power supply markets. For more information about
how to join Plug Power's energy revolution as an investor,
customer, supplier or strategic partner, please visit
http://www.plugpower.com/. This press release may contain
statements, which are not historical facts and are considered
forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
contain projections of Plug Power's future results of operations,
Plug Power's product development expectations or of Plug Power's
financial position or state other forward-looking information. In
some cases you can identify these statements by forward-looking
words such as "anticipate," "believe," "could," "estimate,"
"expect," "intend," "may," "should," "will" and "would" or similar
words. You should not rely on forward-looking statements because
Plug Power's actual results may differ materially from those
indicated by these forward- looking statements as a result of a
number of important factors. These factors include, but are not
limited to, Plug Power's ability to develop commercially viable
on-site energy products; the cost and timing of developing Plug
Power's on-site energy products; market acceptance of Plug Power's
on-site energy products; Plug Power's reliance on its relationship
with certain affiliates of General Electric (GEFCS); Plug Power's
ability to perform on its multi- generation product plan in a
manner satisfactory to GEFCS; Plug Power's ability to manufacture
on-site energy products on a large-scale commercial basis;
competitive factors, such as price competition and competition from
other traditional and alternative energy companies; the cost and
availability of components and parts for Plug Power's on-site
energy products; the ability to raise and provide the necessary
capital to develop, manufacture and market Plug Power's on-site
energy products; Plug Power's ability to establish relationships
with third parties with respect to product development,
manufacturing, distribution and servicing and the supply of key
product components; Plug Power's ability to protect its
intellectual property; Plug Power's ability to lower the cost of
its on-site energy products and demonstrate their reliability; the
cost of complying with current and future governmental regulations;
the impact of deregulation and restructuring of the electric
utility industry on demand for Plug Power's on-site energy
products; fluctuations in the trading price and volume of Plug
Power's common stock and other risks and uncertainties discussed
under the heading "Factors Affecting Future Results" in Plug
Power's annual report on Form 10-K for the fiscal year ended
December 31, 2004, dated March 15, 2005, and filed with the
Securities Exchange Commission on March 15, 2005, and the reports
Plug Power files from time to time with the Securities and Exchange
Commission. Plug Power does not intend to and undertakes no duty to
update the information contained in this press release. Plug Power
Inc. Financial Highlights Balance Sheet Data: September 30,
December 31, Assets 2005 2004 Current assets: Cash and cash
equivalents $ 51,753,381 $ 18,976,767 Restricted cash 365,000
365,000 Marketable securities 54,820,787 47,872,662 Accounts
receivable 1,697,973 2,989,481 Inventory 4,616,846 3,527,140 Other
current assets 1,610,183 1,230,713 Total current assets 114,864,170
74,961,763 Restricted cash 3,965,274 3,965,274 Property, plant and
equipment, net 21,002,300 21,829,254 Intangible asset -- 687,500
Investment in affiliates 4,438,355 5,785,358 Goodwill 10,388,980
10,388,980 Other assets 307,410 379,361 Total assets $ 154,966,489
$ 117,997,490 Liabilities and Stockholders' Equity Current
liabilities: Accounts payable $ 2,258,677 $ 2,339,143 Accrued
expenses and other current liabilities 3,488,077 2,874,554 Deferred
revenue 3,408,073 5,675,227 Total current liabilities 9,154,827
10,888,924 Long-term debt and other liabilities 5,038,894 4,995,740
Total liabilities 14,193,721 15,884,664 Stockholders' equity
140,772,768 102,112,826 Total liabilities and stockholders' equity
$ 154,966,489 $ 117,997,490 Statements of Operations Three Months
Ended Data: September 30, 2005 2004 Revenue Product and service
revenue $ 1,309,718 $ 1,335,018 Research and development contract
revenue 2,570,957 3,293,805 Total revenue 3,880,675 4,628,823 Cost
of revenue and expenses Cost of product and service revenue 796,057
1,239,102 Cost of research and development contract revenue
3,364,876 4,260,544 Research and development expense: Noncash
stock-based compensation 386,775 663,748 Other research and
development 9,121,133 7,932,783 General and administrative expense:
Noncash stock-based compensation 274,739 304,048 Other general and
administrative 1,980,584 1,695,064 Operating loss (12,043,489)
(11,466,466) Interest income, net 623,925 234,289 Loss before
equity in losses of affiliates (11,419,564) (11,232,177) Equity in
losses of affiliates (448,273) (451,142) Net loss $ (11,867,837) $
(11,683,319) Loss per share - basic and diluted $ (0.15) $ (0.16)
Weighted average number of shares outstanding 80,193,623 73,173,913
Statements of Operations Nine Months Ended Data: September 30, 2005
2004 Revenue Product and service revenue $ 3,839,757 $ 4,194,145
Research and development contract revenue 6,918,289 7,405,297 Total
revenue 10,758,046 11,599,442 Cost of revenue and expenses Cost of
product and service revenue 2,479,038 3,887,000 Cost of research
and development contract revenue 9,534,668 9,915,450 Research and
development expense: Noncash stock-based compensation 1,136,129
1,659,069 Other research and development 25,934,317 24,528,128
General and administrative expense: Noncash stock-based
compensation 878,688 1,035,323 Other general and administrative
5,855,418 5,176,628 Operating loss (35,060,212) (34,602,156)
Interest income, net 1,116,787 1,018,243 Loss before equity in
losses of affiliates (33,943,425) (33,583,913) Equity in losses of
affiliates (1,347,002) (1,350,483) Net loss $(35,290,427)
$(34,934,396) Loss per share - basic and diluted $ (0.47) $ (0.48)
Weighted average number of shares outstanding 75,728,709 73,056,991
Statements of Cash Flows Three Months Ended Data: September 30,
2005 2004 Net loss $(11,867,837) $(11,683,319) Non - cash expense
1,934,477 3,158,282 Changes in assets and liabilities (775,333)
1,242,499 Net cash used in operating activities $(10,708,693) $
(7,282,538) Purchase of property, plant and equipment (689,268)
(463,664) Proceeds from disposal of property, plant and equipment
5,000 -- Marketable securities (25,024,280) 4,463,585 Net cash
provided by (used in) investing activities $(25,708,548) $
3,999,921 Proceeds from issuance of common stock, net $ 70,618,520
$ -- Proceeds from stock options and employee stock purchase plan
130,023 2,900 Other (17,253) (18,959) Net cash provided by
financing activities $ 70,731,290 $ (16,059) Statements of Cash
Flows Nine Months Ended Data: September 30, 2005 2004 Net loss
$(35,290,427) $(34,934,396) Non - cash expense 7,075,585 10,368,168
Changes in assets and liabilities (1,871,516) (1,265,854) Net cash
used in operating activities $(30,086,358) $(25,832,082) Purchase
of property, plant and equipment (1,630,159) (1,171,495) Proceeds
from disposal of property, plant and equipment 5,000 -- Marketable
securities (6,765,913) (25,001,176) Net cash provided by (used in)
investing activities $(8,391,072) $(26,172,671) Proceeds from
issuance of common stock, net $70,618,520 $ -- Proceeds from stock
options and employee stock purchase plan 686,019 695,847 Other
(50,495) (51,651) Net cash provided by financing activities
$71,254,044 $ 644,196 DATASOURCE: Plug Power Inc. CONTACT: David
Neumann, Chief Financial Officer, +1-518-782-7700 ext. 1161, , or
Cynthia Mahoney White, Manager, Public Relations & Marketing,
Phone: +1-518-782-7700 ext. 1973, Mobile: +1-518-527-1172, , both
of Plug Power Inc. Web site: http://www.plugpower.com/
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