Hydrogenics Corporation a leading developer and manufacturer of hydrogen and fuel cell products, is reporting third quarter results.
Results for the third quarter of 2006 compared to the third quarter of 2005 were $9.0m, a 15 percent decrease from $10.5m. According to the company this was primarily due to the production delays in their OnSite Generation business unit.
Gross profit, expressed as a percentage of revenues, was 6 percent (15% in 2005) and reflects higher margin deliveries in the Power Systems business unit offset by lower margins and higher overhead absorption in our OnSite Generation business unit.
Pierre Rivard, president and chief executive officer of Hydrogenics Corporation said: $quot;In the third quarter, we commenced a comprehensive assessment of our business and operating plans. As a result of this assessment and changes in strategy, we revised our previous estimates of the growth and development of our Onsite Generation business. In addition, we determined that the revenues of the Test Systems business would be lower than previously anticipated as a result of slower adoption of fuel cell technology in end user markets. Due to the significance of these changes, we recorded $79.9 million of impairment charges relating to our OnSite Generation and Test Systems businesses.$quot;
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