FuelCell Energy Inc (NASDAQ:FCEL) reported a second-quarter fiscal 2024 revenue decline of 42% year-over-year to $22.42 million, beating the consensus of $21.35 million.
Service Agreements revenue dropped to $1.4 million from $26.2 million due to no module exchanges; Generation revenues jumped 67% to $14.1 million, driven by new projects.
Advanced Technologies contract revenues rose to $6.9 million, boosted by higher government and other contracts.
The company reported an EPS loss of $0.07, beating the consensus loss of $0.08.
The company reported a gross loss of $7.1 million, worsening from the previous year's $6.1 million, largely due to high costs and unfavorable margins in generation projects.
Operating expenses increased to $34.3 million, driven by higher R&D spending of $16.6 million on advanced power generation and carbon recovery technologies.
Adjusted EBITDA loss was $26.5 million, slightly down from $26.0 million loss last year.
FCEL's total unrestricted cash, restricted cash, and short-term investments stood at $313.2 million at the end of the quarter.
As of April-end, the backlog increased by 3.8% to $1.06 billion from $1.02 billion a year earlier. This rise was primarily due to new service agreements with Noeul Green Energy and additional contracts with Esso and EMTEC.
Additionally, a post-quarter agreement with GGE for $159.6 million was added to the backlog, involving the supply of upgraded fuel cell modules for a plant in Korea.
"We achieved an important milestone toward commercializing new advanced technologies by updating and extending our joint development agreement with ExxonMobil Technology and Engineering Company to jointly develop carbon capture technology, while retaining certain rights to market this product more widely to a global clientele in need of energy transition solutions," commented Jason Few, President and Chief Executive Officer.
Jason Few, President and Chief Executive Officer, said, "We also entered into an exciting new relationship with Ameresco, Inc. to provide the Sacramento Sewer district with our energy delivery and emissions management platform to create clean electricity from onsite biofuel. We were also pleased to report a 67% increase in our Generation portfolio revenues, enhancing the recurring revenue profile of our Company."
Price Action: FCEL shares are trading higher by 0.59% at $0.8743 at the last check Monday.