Ballard Power Systems Reports 1999 First Quarter Results
VANCOUVER, BRITISH COLUMBIA (May 7) BUSINESS WIRE -May 7, 1999--
Ballard Power (Nasdaq:BLDP) (TSE:BLD.)
Ballard Power Systems Inc. (TSE:BLD) (Nasdaq:BLDP) today reported its
financial results for the first quarter ended March 31, 1999. All
amounts reported are in Canadian dollars.
Revenues for the first quarter rose to $6.5 million from $4.8 million a
year ago, an increase of 34 percent, reflecting the timing of sales of
automotive fuel cells and related systems. The net loss for the quarter
was $8.8 million, compared with last year's $8.2 million. The net loss
per share was $0.11, compared to $0.12 per share in 1998, as a result
of an increase in weighted average shares outstanding. At March 31,
1999, Ballard's financial condition was strong, with shareholders'
equity of $620.9 million, and cash and short-term investments of $431.5
million.
Underscoring the widening interest in fuel cells for transportation
applications, in April three energy companies - ARCO, Shell, and Texaco
- joined the State of California, DaimlerChrysler, Ford and Ballard to
form the "California Fuel Cell Partnership - Driving for the Future."
The Partnership is committed, between 2000 and 2003, to demonstrate and
field test approximately 30 cars and 25 buses powered by engines using
Ballard(R) fuel cells. In addition to gathering data about the
real-life operation and maintenance of the vehicles, the collaboration
will focus on requirements relating to the fuel and the fuel
infrastructure for fuel cell vehicles.
Ballard's partners also unveiled new prototype vehicles during the
quarter, marking further progress in the development of fuel cells for
transportation applications. At the Detroit Auto Show in January, Ford
introduced the P2000 sedan, a fuel cell powered prototype fueled with
compressed hydrogen. In March, DaimlerChrysler introduced its fourth
prototype passenger car powered by Ballard fuel cells, the Necar 4. The
companies of the fuel cell alliance between Ballard, DaimlerChrysler
and Ford supplied key systems for both cars. Ballard provided the fuel
cells, dbb fuel cell engines built the fuel cell engines, and Ecostar
Electric Drive Systems supplied the electric drive trains.
In other transportation developments, Ballard announced that it will
supply Ballard fuel cells and related equipment and services to two
automobile companies for their development programs. Nissan, a Ballard
customer since 1991, placed a $3.5 million order and an order from
Honda R&D Co., a subsidiary of Honda Motor Company, totaled $2.1
million. The transit bus engine test and demonstration programs in
Chicago and Vancouver continued as planned. dbb fuel cell engines and
Ballard are incorporating the information obtained during the program
into the development of their next fuel cell bus engine, which is
proceeding on schedule.
Although fuel cell cars dominated the news in the quarter, interest in
fuel cells for electric power generation continued to grow. Distributed
(decentralized) generation of electricity is gaining recognition as a
clean and efficient alternative for needed capacity additions, and as a
source of reliable electricity for powering sensitive or
uninterruptable electronic, computer and medical equipment. Reflecting
this growing recognition in the United States, a White House
legislative proposal to deregulate the electric power industry included
tax benefits for distributed power installations. Ballard's fuel cell
stationary power business will provide a critical enabling product
targeted at important parts of the emerging distributed power
generation market.
During the quarter, Ballard's subsidiary, Ballard Generation Systems
(BGS), continued testing its prototype 250 kilowatt power plant as well
as building the initial field trial power plants, the first of which is
expected to be delivered in the fourth quarter. The field trial units
will be operated by customers on their own sites and will enable BGS
and Ballard to incorporate this valuable testing experience into the
design of the next generation power plant.
"The introduction of prototype fuel cell cars by our partners,
DaimlerChrysler and Ford, and the creation of the California Fuel Cell
Partnership to demonstrate a fleet of cars and buses powered by fuel
cells, are evidence of the momentum in fuel cells for transportation,
and Ballard's continuing leadership role," said Firoz Rasul, President
and Chief Executive Officer. "In our stationary power business, BGS is
on schedule to deliver the initial 250 kilowatt plants to be deployed
in field trials."
Mr. Rasul added, "Ballard's corporate objectives for 1999 were
published in our 1998 Annual Report, which was mailed to shareholders
in April. We have begun the year with a strong start, in both our
transportation and stationary power businesses. Our corporate goals
reflect the stringent performance and efficiency standards we and our
partners have set for Ballard's fuel cell products. In pursuit of these
goals, we bring a resolute commitment to commercializing competitive
and cost-effective products."
A conference call is scheduled for Friday, May 7, 1999 at 12:00 noon
EST (9:00 am PST) to review Ballard's first quarter highlights. Access
to the call may be obtained by calling the Confertech operator at
416-641-6694 five minutes prior to the call. A playback version of the
conference call will be available for 24 hours after the call at
416-626-4100. The confirmation number to access the playback version is
1314930. The conference call playback will also be available on
Ballard's web site at www.ballard.com.
This release contains forward-looking statements reflecting Ballard
Power Systems' current expectations as contemplated under the Safe
Harbor provisions of the US Private Securities Litigation Reform Law of
1995. Investors are cautioned that all forward-looking statements
involve risks and uncertainties, including, without limitation, product
development delays, changing environmental regulations, the ability to
attract and retain business partners, future levels of government
funding, competition from other fuel cell manufacturers, competition
from other advanced energy technologies, competition from existing
energy technologies, evolving markets for electric power and
transportation vehicles, and the ability to provide the capital
required for product development, operations and marketing. Investors
are encouraged to review the Management's Discussion and Analysis
section in Ballard's 1998 Annual Report titled "Operating Results,
Capital Requirements, and Risks" (pages 30 to 34) for a more complete
discussion of factors that could affect Ballard's future performance.
Ballard Power Systems is the world leader in developing, manufacturing
and marketing zero-emission proton exchange membrane (PEM) fuel cells
for use in transportation, electricity generation and portable
products. Ballard's proprietary fuel cell technology is enabling
automobile, electrical equipment and portable power product
manufacturers to develop environmentally clean products for sale. The
fundamental component of these end-user products is the Ballard(R) fuel
cell which combines hydrogen (which can be obtained from methanol,
natural gas or petroleum) and oxygen (from air) without combustion to
generate electricity. Ballard is partnering with strong, world-leading
companies including DaimlerChrysler, Ford, GPU International, ALSTOM
and EBARA to commercialize the Ballard fuel cell. Additional customers
using the Ballard fuel cell include General Motors, Nissan, Honda,
Volkswagen, Volvo, Matsushita Electric Works, and Cinergy.
Ballard's Common shares are listed on The Toronto Stock Exchange under
the trading symbol "BLD" and on the Nasdaq National Market System under
the symbol "BLDP". Ballard and the Ballard logo are registered
trademarks of Ballard Power Systems Inc.
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