Ballard Power Systems Lowers 2012 Guidance

Ballard Power Systems

announced that it is revising guidance for 2012 revenue and Adjusted EBITDA. The Company indicated in its February 22 press release that full-year guidance for 2012 was: Revenue of approximately $100 million; and Adjusted EBITDA of approximately breakeven. At that time, the Company also indicated that the primary risk factor that could cause a variance to guidance related to "delays in terms of closing and shipping expected sales orders, primarily in our Brazilian and European bus markets". In the Brazilian bus market, contract negotiations related to the LOI with the City of Sao Paolo signed in December 2011 have been more complex and are taking longer than originally anticipated. Ballard expects to gain greater certainty into this situation in the coming months and remains positive as to the outlook for sales of fuel cell bus modules in Brazil. However, given the delays and the reduced time remaining for shipments 'in year', the Company believes that it is prudent now to revise its guidance for 2012. Assuming there are no bus module shipments to Brazil until 2013, the impact on the Company's full-year revenue outlook for 2012 would be approximately $15 million. Given uncertainty as to the timing of revenue and the potential impact on revenue and the associated impact on Adjusted EBITDA in year, the Company has revised its guidance for 2012 to: Revenue of approximately $85 million; and Adjusted EBITDA of approximately ($5) million. These revised guidance numbers represent year-over-year improvements in revenue and Adjusted EBITDA of 12% and 78%, respectively.