BRITISH COLUMBIA

Ballard Power Systems sees net income drop $5.2 million in Q2

08/01/2013 01:48 EDT | Updated 09/30/2013 05:12 EDT
VANCOUVER - Ballard Power Systems (TSX:BLD) says it recorded a $5.2 million loss in net Income in the second quarter after losing $7.4 million in the same quarter a year ago.

The company’s share price dropped a nickel in the quarter after falling nine cents in the same quarter of 2012.

Revenue came in at $14.6 million, an increase of 114 per cent, largely due to gains in the telecom backup power and engineering services markets.

"The positive trend reflected in our Q2 results is evidence of progress with our strategy to re-align resources in order to accelerate the company's two key growth drivers, Telecom Backup Power and Engineering Services,” said president and CEO John Sheridan.

The company also confirmed its full year guidance for revenue growth in excess of 30 per cent.

The Vancouver-based company said last Friday that it has signed a deal with Azure Hydrogen to supply 220 backup power fuel cell systems for use by Chinese telecommunications companies.

Financial terms were not immediately available.

The deal includes 120 direct hydrogen systems and 100 systems fuelled by methanol to be delivered to Azure in the third and fourth quarters.

In March, Azure signed a deal to acquire a 10 per cent stake in Dantherm Power, Ballard's telecom backup power subsidiary, for $2 million.