FuelCell Energy Inc (NASDAQ:FCEL) reported a third-quarter revenue decline of 7% year-over-year to $23.695 million, beating the consensus of $22.62 million.

Service Agreements revenue dropped to $1.4 million from $9.8 million YoY due to no module exchanges; Generation revenues jumped 22% to $13.4 million, driven by revenue generated by the Toyota and Derby projects. Advanced Technologies contract revenues rose to $8.6 million from $4.7 million.

The company reported a loss per share of $0.07, which aligned with the consensus. The company reported a gross loss of $6.2 million, an improvement from the previous year’s $8.2 million.

Operating expenses decreased to $27.4 million from $33.2 million a year ago. Adjusted EBITDA loss improved to $20.1 million from a $31.6 million loss last year.

FCEL’s cash and cash equivalents, restricted cash and cash equivalents, and short-term investments totaled $326 million as of July-end. Backlog rose 12.6% to $1.20 billion, driven by a long-term service agreement with Gyeonggi Green Energy.

“We are taking proactive steps to help preserve balance sheet strength while continuing to execute on our growth objectives and position our platforms to capitalize on the energy transition and the growing distributed power generation opportunity,” stated Michael Bishop, Executive Vice President, Chief Financial Officer, and Treasurer.

The company sold 95.2 million shares at $0.71 each in the quarter, raising $67.3 million in gross proceeds and $65.9 million net after $1.4 million in fees.

Price Action: FCEL shares are trading higher by 11% at $0.4584 at the last check Thursday.

Image: Courtesy of FuelCell Energy