Ballard Power Systems Inc. (TSX:BLD) still hasn’t turned the profit corner, but has seen revenues increase enough to put the company at the “tipping point,” according to second-quarter financials.
Meanwhile, Westport Innovations Inc. (TSX:WPT) has also posted second-quarter financials that show a continued net loss.
Ballard’s revenue was up 114% in the second quarter, driven largely by increasing sales of Ballard’s hydrogen fuel cell backup power systems, used mostly by the telecommunications industry as a source of clean, reliable backup power. Revenue of $14.6 million in Q2 represents a 114% increase over 2012’s second quarter.
Ballard’s second-quarter earnings do not include recent orders Ballard has received for 220 of its backup power systems to be used by telecoms in China. Ballard has not disclosed how much the order is worth.
Despite revenue being up, Ballard posted a $5.2 million net loss for Q2, an improvement over Q2 2012’s net loss of $7.4 million.
“The positive trend reflected in our Q2 results is evidence of progress with our strategy to realign resources in order to accelerate the company’s two key growth drivers, telecom backup power and engineering services, while positioning for broader value creation in development stage markets,” said Ballard CEO John Sheridan.
Ballard makes hydrogen fuel cell technology, and in recent years has moved away from automotive power and into backup and stationary power systems.
Natural-gas engine technology company Westport incurred a net loss $33.9 million, ($0.61 per share) in the second quarter; the net loss for Q2 2012 was $6.1 million ($0.11 per share).
In a move the company said is geared towards moving the company out of R&D and into commercialization, Westport this week announced the appointment of Nancy Gougarty as president and COO. She previously served on Westboard’s board of directors.
“The change in roles for Nancy is part of Westport's progression from research and development into an organization focused on the global commercialization of a wide range of products,” the company stated.
“Nancy will play a key role in implementing our strategic priorities, supporting Westport in meeting the challenges of operating a global business and driving Westport’s financial success with her experience in operations and international product sales,” Westport CEO Dave Demers said.
Westport’s technology for natural gas engines taps a market believed to have significant growth potential in North America, where natural gas prices are much lower than gasoline or diesel.
