ACTUAL ARTICLE IN ALBANY TIMES UNION
Ex-general joins Plug Power board
Colonie -- Retired Army Gen. John M. Shalikashvili, the former chairman of the Joint Chiefs, is serving
Plug Power Inc., the fuel cell technology company that recently went public, is attracting some high-powered people to its board.
Retired Army Gen. John M. Shalikashvili, former chairman of the Joint Chiefs of Staff, recently was appointed an outside director of Plug Power. He joins Robert Nardelli, head of GE Power Systems, and other executives on the newly formed board.
Plug Power has been publicly trading for only two weeks after raising $90 million in a public offering.
The public offering proceeds will help the company bring to market fuel cells that create electricity from hydrogen. The company's first commercial product is to be a dishwasher-size unit, selling for $3,000 to $5,000 to power homes and small businesses.
"This is really on the cutting edge of alternative energy source technology,'' Shalikashvili, 63, said Friday in a telephone interview from his home office outside Seattle.
He said his interest in this type of technology dates back to his days as an active duty officer. The military has long been looking for portable, clean and quiet alternate sources of energy. That kind of power can be useful in field operations, he noted.
There's also potential for fuel cells in markets abroad that don't have extensive power grids or that have suffered damage, said Shalikashvili, a Polish immigrant who trained as a mechanical engineer.
The career Army man rose from the rank of private to serve two terms as chairman of the Joint Chiefs of Staff. He stepped down in 1997 after 39 years in the Army.
Since then, he has been a visiting professor at Stanford University, and a director and management consultant at several other firms.
Shalikashvili heard about Plug Power from a business contact, and then met in Washington, D.C., with Plug Power President Gary Mittleman a few months ago.
The directors have so far had a telephone conference, but not yet a full meeting of the board, Shalikashvili said.
Plug Power's prospectus says it pays outside directors $500 each time they participate in board meetings by telephone, and $1,000 for each time they attend board meetings in person. Outside directors also may get the chance to buy stock options, with the approval of the full board.
Directors also include George C. McNamee, chairman of First Albany Companies, and Walter Robb, former GE executive and management consultant. First Albany has an equity stake in Mechanical Technology Inc., which co-founded Plug Power.
Anthony F. Earley Jr., chairman of Detroit Edison, also joined the board, along with a financial executive from his company. Detroit Edison's subsidiary, DTE Energy, also helped co-found Plug Power.
The other outside director is a founder of a medical systems company.
Plug Power released its first earnings report since becoming a public company, reporting a $9.8 million loss, translating into a loss of 38 cents a share, in the third quarter ending Sept. 30. That compares with a loss of $2.8 million, or 17 cents a share, for the same period last year.
Revenues in the third quarter advanced to $3 million, an increase of 25 percent over the $2.4 million recorded in 1998's third quarter.
All revenues so far have come from government contracts.
For the first nine months of the year, the company posted a net loss of $24.9 million, or a loss of $1.10 cents a share, compared with a loss of $7.1 million, a loss of 56 cents a share in the same period last year.
Revenues for the first nine months were $6.7 million this year, up from $5 million last year.
Because of the company's recent stock offering, it has the financial resources necessary to bring its planned home fuel cell to market in 2001, Mittleman said in a statement.
Plug Power stock closed at $18, down 6 cents
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy) |
