Forbes Online: Distributed Energy Boosts Revenue View
07.18.2005, 04:30 PM
forbes.com
Distributed Energy Systems Corp., a producer of alternative energy devices, on Monday raised revenue guidance for the second quarter and full year, citing increased bookings and a growing backlog at its Northern Power unit.
The company's shares rose 15 cents, or 3.25 percent, to close at $4.77 on the Nasdaq, but then jumped 77 cents, or 16 percent, to $5.54 in after-market activity. The stock has steadily risen from a 52-week low of $1.54 last September to a recent year-high of $5.04.
Distributed Energy - the parent company of Northern Power Systems and Proton Energy Systems, two advanced energy technology companies that merged in December 2003 - said it now expects 2005 total revenue to be in the $40 million range, up from its earlier forecast of $30 million and higher than 2004 revenue of $22 million.
In addition, the company said that second-quarter revenue is expected to exceed $10 million, up from $4.3 million a year ago.
For the second half of the year, we also expect to improve margins and have taken further action to reduce operating expenses," said Chip Schroeder, president of Distributed Energy Systems. "Even as we are growing bookings and backlog, we are well aware that our bottom line is not yet where we need it to be. We are making progress toward getting to cash breakeven, which remains our highest priority."
Through Proton Energy Systems, the company makes hydrogen generators and regenerative fuel cells. Northern Power installs power systems that generate energy from sources such as wind and light.
Kinda explains the recent trading activity, eh? The bigger issue - since the stock was gonna get here anyway - is where to from here. By that I mean, it's pretty clear that AE is gonna be at the forefront of cocktail fodder for the foreseeable future. I d/n know what is gonna happen to the price of oil, but I suspect it ain't going back down to $40 again. So, this is gonna to continue to be a hot industry - take a look at PLUbG - Barron's killed it a couple of weeks ago. Stock took a hit, but has already totally recovered. I think institutions want to be in on AE. I also expect DESbC to shine for the foreseeable future. Problem is that nothing goes up in da straight line. What to do? PM any thoughts on this positive, but troubling conundrum. |
