Ballard Power Shares Slip As Q1 Revenue Declines 37%, Misses Estimates

• Ballard Power Systems Inc BLDP reported a first-quarter FY23 revenue decrease of 37% year-over-year to $13.3 million, missing the consensus of $18.32 million.


• The company reported a gross loss of $(5.6) million, compared to $(0.2) million a year ago. The gross margin was (42)%, a decrease from (1)% in the first quarter of 2022.


• EPS loss was $(0.11) compared to $(0.14) in the first quarter of 2022, beating the consensus of $(0.13).


• Adjusted EBITDA loss expanded to ($38.3) million in the quarter, compared to ($27.5) million in the first quarter of 2022, due to decreased gross margin and increased cash operating costs. 


• Ballard received ~$17.6 million of new orders in the first quarter and delivered orders valued at $13.3 million, resulting in an Order Backlog of ~$137.7 million at the end of the quarter. 


• "We believe our $137.7 million Order Backlog reflects continued customer platform wins, including a record Power Products Order Backlog that has doubled from one year ago and now exceeds $100 million," said Randy MacEwen, president and CEO. "This positions us for a busy second half of 2023, where we expect second half revenue to be approximately 70% of our annual total, and an exciting set-up for 2024."


• The 12-month Order Book was $73.9 million, an increase of $16.6 million from the end of the fourth quarter of 2022.


• Ballard's cash used in operating activities narrowed to $(36.6) million, compared to $(41.7) million a year ago.


• The company held cash reserves of $863.8 million (-19% Y/Y) as of March 31, 2023.


• The company continues to see gross margin pressures into 2024, given BLDP's revenue mix, pricing strategy, investments in production capacity, and timing lag before its production volumes ramp and product cost reduction initiatives move into production.


• FY23 Outlook: Ballard Power sees total operating expenses of $135 million-$155 million and capital expenditure of $40 million-$60 million.


• BLDP Price Action: Ballard Power shares are trading lower by 2.95% at $4.27 on the last check Wednesday.

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