FuelCell Energy Inc FCEL reported a third-quarter FY23 revenue decline of 41% year-over-year to $25.51 million, missing the consensus of $27.72 million.
"This was primarily a result of lower product revenues due to the lack of module sales compared to sales in the comparable prior year quarter of replacement modules to Korea Fuel Cell Co., Ltd. ("KFC")," commented Jason Few, President and Chief Executive Officer.
The company reported an EPS loss of $(0.06), an improvement from $(0.08) posted in 3Q22, beating the consensus of $(0.08).
Operating loss expanded to $(41.1) million versus $(28) million a year ago. Adjusted EBITDA loss reached $(31.61) million versus $(20.77) million in 3Q22
FCEL held cash and equivalents of $413.9 million as of July 31, 2023. Backlog decreased by ~17.2% to $1.06 billion as of July 31, 2023, versus $1.28 billion a year ago. The decline reflects the decision not to proceed with certain generation projects during 4Q22.
CEO commented, "We extended the term of our Joint Development Agreement with ExxonMobil Technology and Engineering Company ("EMTEC") through March 2024 to allow us to continue to derisk our Generation 2 Technology fuel cell module demonstration prototype and continue our joint marketing and sales efforts to inform development of a new business framework between the parties beyond the current joint development agreement structure."
Related: FuelCell Energy Reinstates Its Focus On Green Future, Extends Deal With Exxon Mobil
Recently, FCEL executed a long-term service agreement with Noeul Green Energy Co., Ltd. and a memorandum of understanding with Gyeonggi Green Energy Co., Ltd., expanding its presence in the Korean market. The 14-year long-term service agreement with Noeul Green added expected significant long-term recurring revenue to FCEL's reported backlog, with a contract value of $73 million.
Price Action: FCEL shares are trading higher by 1.38% at $1.46 premarket on Monday.
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