Plug Power Announces Third Quarter 2012 Financial Results

Plug Power Announces Third Quarter 2012 Financial Results

Company Updates 2012 Guidance

LATHAM, N.Y., Nov. 13, 2012 (GLOBE NEWSWIRE) -- Plug Power Inc. (Nasdaq:PLUG),
a leader in providing clean, reliable energy solutions, today reported its
financial results for the third quarter of 2012.

The deployment of GenDrive® units continued in the third quarter with
shipments to customers such as Walmart, Procter & Gamble, BMW and Stihl. The
order from Stihl, announced earlier this year, was delivered in less than six
months, including the installation of the hydrogen fueling infrastructure. The
Company now has over 3,000 units in the field sited at 33 different customer
locations across North America. There are over 15,000 hydrogen re-fuelings
performed each week on this installed base. Year-to-date shipments are double
what they were during the same period in 2011.

Additionally, the Company has achieved a significant milestone in reduction of
its product costs. The Company's new product platforms have a material cost
that is now 60% of the product's price, a key indicator of the potential long
term profitability of Plug Power.

"Plug Power has certainly seen success in the third quarter, but we also
encountered a number of product quality challenges," said Andy Marsh, CEO of
Plug Power. "These issues have been technically addressed and implementation
will be significantly completed by year end.Most of the higher product costs
for the quarter are associated with these quality issues."

These challenges have affected the timing on several orders and have increased
our costs for the year. As a result, Plug Power is adjusting its guidance for
2012 to the following:

  oFrom $30M-$35M range in product and service revenue to $26M-$30M total
    revenue range
  oFrom $17M-$19M EBITDAS loss range to $27M-$29M loss range

Marsh continued, "We have a large market opportunity, a supportive customer
base and a solid, stable, cost effective product platform.These have always
been the key ingredients for our business and we are well positioned to be
successful in 2013 and beyond."

Financial Results

Net loss for the third quarter of 2012 was $10.3 million, or $0.27 per share
on a basic and diluted basis. This compares with a net loss of $6.3 million,
or $0.28 per share, for the third quarter of 2011.

Total revenue for the third quarter of 2012 was $4.8 million, comprised of
$4.3 million for product and service revenue and $0.5 million for research and
development (R&D) contract revenue. This compares to total revenue of $5.5
million in the third quarter of 2011, which was comprised of $4.3 million for
product and service revenue, $1.0 million for R&D contract revenue, and $0.2
million for licensed technology revenue.

The Company shipped 186 units during the third quarter of 2012 compared to 195
units in the third quarter of 2011.Additionally, the Company shipped 245
units during the third quarter of 2012 to a customer site in connection with a
customer lease that is not yet complete.

Total cost of revenue for the third quarter of 2012 was $11.7 million,
comprised of $10.9 million for cost of product and service revenue and $0.8
million for cost of R&D contract revenue. This compares to total cost of
revenue of $9.3 million in the third quarter of 2011, which was comprised of
$7.6 million for cost of product and service revenue and $1.7 million for cost
of R&D contract revenue.

R&D expenses for the third quarter of 2012 were $1.3 million compared with
$1.5 million for the third quarter of 2011. Selling, general and
administrative (SG&A) expenses were $3.1 million for the third quarter of 2012
compared with $3.6 million for the third quarter of 2011. Additionally, $0.6
million was expensed for amortization of intangible assets during the third
quarter of 2012 and 2011.

Cash and Liquidity

Net cash used in operating activities for the third quarter of 2012 was $7.1
million. Plug Power had cash and cash equivalents of $9.5 million and net
working capital of $15.6 million at September 30, 2012. This compares to $13.9
million and $22.5 million, respectively, at December 31, 2011.

The accompanying consolidated financial information and reconciliation tables
provide additional information on the Company's year-to-date performance as it
relates to milestones previously announced.

Conference Call

Plug Power has scheduled a conference call on November 13, 2012 at 10:00 am ET
to review the Company's results for the third quarter of 2012. Interested
parties are invited to listen to the conference call by calling 877.407.8291
or 201.689.8345 for international participants.

The webcast can be accessed by going directly to the Plug Power Web site
( and selecting the conference call link on the home page.A
playback will be available online for a period following the call.

About Plug Power Inc.

The architects of modern fuel cell technology, Plug Power is revolutionizing
the industry with cost-effective power solutions that increase productivity,
lower operating costs and reduce carbon footprints. Long-standing
relationships with industry leaders forged the path for Plug Power's key
accounts, including Walmart, Sysco, P&G and Mercedes. With more than 3,000
GenDrive units deployed to material handling customers, accumulating over 8.5
million hours of runtime, Plug Power manufactures tomorrow's incumbent power
solutions today. Additional information about Plug Power is available at

The Plug Power Inc. logo is available at

Plug Power Inc. Safe Harbor Statement

This communication contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995.These statements are
based on current expectations that are subject to certain assumptions, risks
and uncertainties, any of which are difficult to predict, are beyond our
control and that may cause our actual results to differ materially from the
expectations in our forward-looking statements including, but not limited
to:the risk that we continue to incur losses and might never achieve or
maintain profitability, the risk that we expect we will need to raise
additional capital to fund our operations and such capital may not be
available to us; our lack of extensive experience in manufacturing and
marketing products may impact our ability to manufacture and market products
on a profitable and large-scale commercial basis; the risk that unit orders
will not ship, be installed and/or converted to revenue, in whole or in part;
the risk that pending orders may not convert to purchase orders; the risk that
our continued failure to comply with NASDAQ's listing standards may severely
limit our ability to raise additional capital; the cost and timing of
developing our products and our ability to raise the necessary capital to fund
such costs; the ability to achieve the forecasted gross margin on the sale of
our products; the actual net cash used for operating expenses may exceed the
projected net cash for operating expenses; the cost and availability of fuel
and fueling infrastructures for our products; market acceptance of our
GenDrive systems; our ability to establish and maintain relationships with
third parties with respect to product development, manufacturing, distribution
and servicing and the supply of key product components; the cost and
availability of components and parts for our products; our ability to develop
commercially viable products; our ability to reduce product and manufacturing
costs; our ability to successfully expand our product lines; our ability to
improve system reliability for our GenDrive systems; competitive factors, such
as price competition and competition from other traditional and alternative
energy companies; our ability to protect our intellectual property; the cost
of complying with current and future federal, state and international
governmental regulations; and other risks and uncertainties discussed, but are
not limited to, those set forth in (i) "Item IA-Risk Factors" in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2011, filed with
the Securities and Exchange Commission ("SEC") on March 30, 2012 and (ii) in
our quarterly report on Form 10-Q for the quarter ended June 30, 2012 filed
with the SEC on August 14, 2012, as well as in the other reports we file from
time to time with the SEC. We do not intend to, and undertake no duty to;
update any forward-looking statements as a result of new information or future

Plug Power Inc.                                                          
Financial Highlights                                                      
Balance Sheets (Dollars in thousands):                                    
                          September    December 31,                       
                           30, 2012     2011
Current assets:                                                          
Cash and cash equivalents  $9,461     $13,857                          
Accounts receivable        7,661       13,389                            
Inventory                  13,005     10,355                            
Prepaid expenses and other 1,553       1,894                             
current assets
Total current assets       31,680      39,495                            
Property, plant and        7,404       8,687                             
equipment, net
Note receivable            586         --                              
Intangible assets, net     5,897       7,474                             
Total assets               $45,567    $55,656                          
Liabilities and Stockholders' Equity                                      
Current liabilities:                                                     
Accounts payable           $5,542     $4,669                           
Accrued expenses           2,075       3,173                            
Product warranty reserve   2,969       1,211                             
Borrowings under line of   1,000       5,405                             
Deferred revenue           4,176       2,505                             
Other current liabilities  334         80                                
Total current liabilities  16,096      17,043                            
Common stock warrant       1,594       5,321                             
Deferred revenue           3,568      3,037                             
Other liabilities          1,264       1,219                             
Total liabilities          22,522      26,620                            
Stockholders' equity       23,045      29,036                            
Total liabilities and      $45,567    $ 55,656                         
stockholders' equity
Statements of Operations   Three months ended       Nine months ended      
(Dollars in thousands):    September 30,             September 30,
                          2012        2011        2012       2011       
Product and service        $4,274     $4,313     $18,712   $11,928   
Research and development   502        994         1,475      3,342      
contract revenue
Licensed technology        --         163         --       489        
Total revenue              4,776       5,470       20,187     15,759     
Cost of revenue and                                                      
Cost of product and        10,850      7,566       28,552     19,187     
service revenue
Cost of research and
development contract       791         1,695       2,390      5,506      
Research and development   1,285      1,479       4,090      3,648      
Selling, general and       3,053       3,606       10,556    11,051     
administrative expense
Gain on sale of leased     --         (673)       --        (673)      
Amortization of intangible 578         585         1,727      1,755      
Operating loss            (11,781)    (8,788)    (27,128)   (24,715)   
Interest and other income
and net realized losses    80          100         171        221        
Change in fair value of    1,435       2,414       3,727     4,205      
warrant liability
Interest and other expense
and foreign currency gain  (59)        (17)        (158)      3          
Net loss                   $(10,325)  $(6,291)   $(23,388) $(20,286) 
Loss per share: Basic and  $(0.27)    $ (0.28)   $(0.71)   $(1.16)   
Weighted average number of 37,977,052  22,676,114  33,107,175 17,441,767 
common shares outstanding
Plug Power Inc.                                                          
Reconciliation of Non-GAAP financial measures                              
Reconciliation of Reported Net loss to                                    
                          Three months ended       Nine months ended      
                           September 30,             September 30,
                          2012        2011        2012       2011       
Operating loss, as        $(11,781)  $(8,788)   $(27,128) $(24,715) 
Stock based compensation  478         599         1,500      1,602     
Depreciation and          1,062       1,131       3,186      3,355      
EBITDAS                   $(10,241)  $(7,058)   $(22,442) $(19,758) 
EBITDAS is defined as operating income (loss), as adjusted for depreciation
and amortization expense and charges for equity compensation.EBITDAS is a
non-GAAP measure of our financial performance and should not be considered   
as alternatives to net income or any other performance measure derived in
accordance with GAAP, or as an alternative to cash flows from operating
activities as a measure of our liquidity.

Reconciliation of Gross margin percentage to Adjusted gross                 
margin percentage
                          Three months ended       Nine months ended      
                           September 30,             September 30,
                          2012        2011        2012       2011       
Product and service        $4,274     $4,313     $18,712  $11,928   
revenues, as reported
Deferred revenue
recognized in the          (166)       (279)       (1,744)    (1,081)    
reporting period
Current invoiceable value
of shipments, recorded to  673         588         3,328      1,114      
deferred revenue
Product and service        $4,781     $4,622     $20,296   $11,961   
revenues, as adjusted
Cost of product and        $10,850    $7,566     $28,552   $19,187   
service revenue
Gross margin percentage    (153.9%)     (75.4%)      (52.6%)     (60.9%)     
Adjusted gross margin      (126.9%)     (63.7%)      (40.7%)     (60.4%)     
Gross margin percentage is a financial ratio used to indicate the
relationship between cost of product and service revenue and product and
service revenue.We use the term adjusted gross margin percentage to refer
to product and service revenue, as adjusted, less total cost of product and
service revenue as a percentage of product and service revenue, as           
adjusted.This non-GAAP financial measure allows management to view gross
margin percentage as if revenue had been fully recognized upon invoicing.We
believe that these non-GAAP measures, when taken together with our GAAP
financial measures, allow us and our investors to better evaluate short-term
and long-term profitability trends.

While management believes that these non-GAAP financial measures provide
useful supplemental information to investors, there are limitations
associated with the use of these non-GAAP financial measures.These measures 
are not prepared in accordance with GAAP and may not be directly comparable
to similarly titled measures of other companies due to potential differences
in the exact method of calculation.

Plug Power Inc. and Subsidiaries                                           
Condensed Consolidated Statements of Cash Flows                            
                          Nine months ended                               
                          September 30,                                   
                          2012         2011                               
Cash Flows From Operating                                                
Net loss                  $(23,388)  $(20,286)                        
Adjustments to reconcile
net loss to net cash used                                                
in operating activities:
Depreciation               1,459      1,600                             
Amortization of intangible 1,727       1,755                             
Loss on disposal of
property, plant and        58         309                               
Stock-based compensation  1,500       1,602                             
Gain sale of leased assets             (673)                             
Realized loss on
available-for-sale         --          22                                
Change in fair value of    (3,727)     (4,205)                           
warrant liability
Changes in assets and                                                    
Accounts receivable       5,728       (1,029)                           
Inventory                 (2,650)     5,303                             
Prepaid expenses and other 342         (180)                             
current assets
Issuance of note           (586)       --                                
Accounts payable, accrued
expenses, product warranty 1,788       (2,915)                           
reserve and other
Deferred revenue          2,201       (456)                             
Net cash used in operating (15,548)    (19,153)                          
Cash Flows From Investing                                                
Purchase of property,      (292)      (1,156)                           
plant and equipment
Restricted cash                        525                               
Proceeds from sale of                  673                               
leased assets
Proceeds from disposal of
property, plant and        58          45                                
Proceeds from maturities
and sales of               --          10,399                            
Net cash (used in)
provided by investing      (234)       10,486                            
Cash Flows From Financing                                                
Purchase of treasury stock --         (158)                             
Proceeds from issuance of  17,192      22,584                            
common stock
Stock issuance costs       (1,403)     (1,891)                          
Proceeds (repayment) from
borrowings under line of   (4,405)     --                                
Principal payments on      --          (10)                             
long-term debt
Net cash provided by       11,384      20,525                            
financing activities
Effect of exchange rate    2           (11)                             
changes on cash
Increase in cash and cash  (4,396)     11,847                            
Cash and cash equivalents, 13,857      10,955                            
beginning of period
Cash and cash equivalents, $9,461     $22,802                          
end of period

CONTACT: Media Contact:
         Reid Hislop
         Plug Power Inc.
         Phone: (518) 782-7700 ext. 1360
         Investor Relations Contact:
         Cathy Yudzevich
         Plug Power Inc.
         Phone: (518) 782-7700 ext. 1448

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