By Dhirendra Tripathi
Investing.com – FuelCell Energy stock (NASDAQ:FCEL) tanked 15% Wednesday after the company’s fourth-quarter sales fell and losses widened to come in short of analysts’ expectations.
The company closed October with an order backlog of $1.29 billion, unchanged from a year ago.
Revenue in the quarter ended Oct. 31 fell 18% year-on-year, to $13.93 million. The company attributed the fall to a $5.6 million decrease in service agreements and license revenue. There were no module exchanges during the fourth quarter, it said, which hurt revenue.
The company also recorded a $1 million reduction in service revenue as a result of higher future cost estimates related to future module exchanges compared to the company’s prior estimates.
The net loss widened by $5 million to $24 million. Higher operating expenses contributed to the loss, but there were other factors.
Heavy impairment charges related to some of its projects also contributed. The company also factored in cost estimate adjustments related to future module replacements, which resulted in a negative margin impact of approximately $2.6 million.
The company also took a hit of $1.8 million because of development costs for two projects that are no longer being pursued.