PLUG 5.30 close has news out that may move it: Plug Power Achieves Milestones for Fifth Consecutive Year, Provides 2005 Progress Update
Thursday January 5, 7:24 am ET
LATHAM, N.Y., Jan. 5 /PRNewswire-FirstCall/ -- Plug Power Inc. (Nasdaq: PLUG - News), a leading provider of clean, reliable on-site energy, today announced accomplishments and milestones achieved during 2005.
"I am pleased to report that for the fifth consecutive year, Plug Power achieved its public milestones," said Roger Saillant, Plug Power's President and CEO. "Our dedicated team worked hard to ensure that Plug Power finished strong in 2005 and is positioned for further growth in 2006."
2005 public milestones achieved include:
Tripled the number of GenCore® orders received to at least 300:
Received 306 GenCore orders in 2005, compared to 94 in 2004. The Company
carried a 190-unit backlog into 2006. The majority of the orders received
in 2005 were from end users in the targeted telecommunications and
utility market segments with more than 85 percent of the orders placed
via channel partners. Plug Power currently has 17 distribution partners
on five continents for the GenCore product line.
Reduced GenCore direct material cost by 25 percent from 2004 levels:
During 2005, Plug Power achieved a 29 percent decrease in direct material
cost for its GenCore product when compared to year-end 2004 levels. These
reductions were achieved via a variety of initiatives, including design
improvements, process simplifications and supplier negotiations.
Began field-testing the next-generation continuous-run product:
Ten prototypes of the Company's next-generation GenSys® fuel cell
system have been installed and operational at the Robins Air Force Base
in Georgia since September 2005. This one-year field trial will be used
to enhance product performance and improve system reliability throughout
the duration of the program. To date, the systems have generated more
than 52,000 kilowatt hours of electricity.
Secured a contract with Honda for Phase III of the Home Energy Station (HES) and continued development activities:
Executed contracts for development of a third-generation Home Energy
Station and for advanced research and development with Honda R&D. The
latest system, HES III, was installed at Honda R&D Americas' facility in
Torrance, Calif. in September and is currently providing hydrogen
refueling services to fuel cell vehicles operating in southern
California.
In addition to the progress against the public milestones stated above, the Company successfully worked toward other significant accomplishments during the year. Events of note include:
Improved Capitalization and Contained Net Cash Used in Operating Activities:
In 2005, the Company improved its capitalization and strengthened its
balance sheet by adding approximately $70.6 million net cash through the
sale of common stock. As of Dec. 31, 2005 the Company had $97.5 million
in cash, cash equivalents and marketable securities and an additional
$4.0 million of restricted cash (unaudited).
The Company's net cash used in operating activities was $39.6 million for
the year ended Dec. 31, 2005 (unaudited). In 2005, Plug Power increased
its direct sales force to focus on accelerating commercialization of the
Company's GenCore product and increased product development spending
related to the next-generation GenSys fuel cell system.
Helped secure tax credit for fuel cell end users:
Successfully lobbied for the 30 percent fuel cell tax credit of up to
$1,000 per kilowatt included in the Energy Policy Act of 2005. Effective
Jan. 1, 2006, this tax credit can be used in residential or commercial
applications and specifically includes telecommunications carriers among
the eligible end users.
Secured GSA, Florida, Texas and California government contract agreements:
The Company's GenCore backup fuel cell product was approved by the U.S.
General Services Administration (GSA) for listing on the Federal Supply
Service Schedule, allowing federal agencies to purchase GenCore under a
pre-negotiated contract. In addition, Plug Power secured a similar
designation as a supplier of backup power for the states of Florida,
Texas and California enabling all state agencies in those states to
procure and deploy GenCore systems. These developments complement Plug
Power's 2004 agreement with the N.Y. State Office of General Services
allowing state agencies to purchase GenCore systems directly from state
contract listings.
Plug Power will release 2005 fourth quarter and full year financial results in February 2006.
About Plug Power
Plug Power Inc. is an established leader in the deployment of clean, reliable, on-site energy products. More than 600 Plug Power fuel cell systems have been delivered to customers worldwide in commercial, public sector, telecommunications, utility and uninterruptible power supply markets. For more information about how to join Plug Power's energy revolution as an investor, customer, supplier or strategic partner, please visit www.plugpower.com.
This press release may contain statements, which are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Plug Power's future results of operations, Plug Power's product development expectations or of Plug Power's financial position or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. You should not rely on forward-looking statements because Plug Power's actual results may differ materially from those indicated by these forward- looking statements as a result of a number of important factors. These factors include, but are not limited to, Plug Power's ability to develop commercially viable on-site energy products; the cost and timing of developing Plug Power's on-site energy products; market acceptance of Plug Power's on-site energy products; Plug Power's reliance on its relationship with certain affiliates of General Electric (GEFCS); Plug Power's ability to perform on its multi- generation product plan in a manner satisfactory to GEFCS; Plug Power's ability to manufacture on-site energy products on a large-scale commercial basis; competitive factors, such as price competition and competition from other traditional and alternative energy companies; the cost and availability of components and parts for Plug Power's on-site energy products; the ability to raise and provide the necessary capital to develop, manufacture and market Plug Power's on-site energy products; Plug Power's ability to establish relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; Plug Power's ability to protect its intellectual property; Plug Power's ability to lower the cost of its on-site energy products and demonstrate their reliability; the cost of complying with current and future governmental regulations; the impact of deregulation and restructuring of the electric utility industry on demand for Plug Power's on-site energy products; fluctuations in the trading price and volume of Plug Power's common stock and other risks and uncertainties discussed under the heading "Factors Affecting Future Results" in Plug Power's annual report on Form 10-K for the fiscal year ended December 31, 2004, dated March 15, 2005, and filed with the Securities Exchange Commission on March 15, 2005, and the reports Plug Power files from time to time with the Securities and Exchange Commission. Plug Power does not intend to and undertakes no duty to update the information contained in this press release.
--------------------------------------------------------------------------------
Source: Plug Power Inc. |
