Plug Power: Order Targets
Plug Power Inc., a leader in providing clean, reliable energy solutions today provides a progress report against its 2009 order milestone.
As stated throughout the year, Plug Power remains encouraged by the successful implementation of GenDrive™ fuel cell power units into material handling applications during 2009. Plug Power's GenDrive solution offers customers an environmentally-conscious alternative to lead-acid batteries as a power source for electric lift trucks, allowing for increased productivity and lowered lifetime operational costs of the operation. Major companies such as Central Grocers, Wegmans, Sysco and Coca-Cola have first-mover advantage in an industry where revenue is generated based on the efficiency of the operations.
Plug Power also saw success in India during 2009, selling 200 prime power GenSys® units to Wireless TT Info Services Limited (WTTIL), the tower arm of Tata Teleservices Limited (TTSL). Additionally, Plug Power and SFO Technologies signed a five-year manufacturing and supply agreement for the build of Plug Power's GenSys systems in India.
Against its milestone to secure 1,000 orders in 2009, Plug Power achieved 786 total orders. Plug Power ended 2009 with 584 GenDrive orders, receiving 204 unit orders in the fourth quarter. There are several orders still pending which are expected to close early this year.
"Plug Power saw strong market traction in both the material handling and remote prime power markets during 2009. Businesses implemented our solutions to benefit their operations and allow for sustainability targets to be met," said Plug Power's CEO, Andy Marsh. "Plug Power remains focused on completing current negotiations with customers. At the same time, we expect to see sales momentum continue to build in 2010 as the value proposition of our GenDrive and GenSys products become more evident in their market spaces."
As was previously announced, Plug Power officially launched its class-2 standup-reach truck unit during the fourth quarter of 2009. This system is a critical enhancement to the GenDrive offering, complementing the product portfolio and achieving a key corporate milestone. Following on successful tests with major lift truck OEMs in North America, targeted customers can now convert their entire lift truck fleet to hydrogen fuel cell power units, totally eliminating toxic lead-acid batteries and consuming battery-charging equipment from their operations.
"The successful launch of the GenDrive class-2 product dramatically increased the level of interest and sales activity during the fourth quarter," said Tom Hoying, Vice President of sales for Plug Power. "The convenience of full-fleet conversion, coupled with increased productivity and lowered operational costs, makes the buying decision considerably easier for the customer. During the fourth quarter, Plug Power received a purchase order from a major retailer constructing a new facility using only a hydrogen infrastructure. We are confident that this trend will continue in 2010, allowing Plug Power to meet its sales targets."
The Company announced a three-year path to profitability on October 8, 2009. According to the corporate strategy, Plug Power believes it can achieve profitability by 2012, generating a positive cash flow for the first time in the Company's history. Plug Power's GenDrive and GenSys backlog at December 31, 2009 was 853 units. This backlog will correlate with Plug Power's 2010 goal to ship 1,100 GenDrive units and 1,000 GenSys units.
Plug Power will discuss overall financial metrics, including its progress against the net cash milestone, during its regularly scheduled 2009 year-end conference call.
About Plug Power Inc.
Plug Power Inc. (Nasdaq:PLUG), an established leader in the development and deployment of clean, reliable energy solutions, integrates fuel cell technology into motive and continuous power products. The Company is actively engaged with private and public customers in targeted markets throughout the world. For more information about how to join Plug Power's energy revolution as an investor, customer, supplier or strategic partner, please visit www.plugpower.com. The Plug Power Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4446
Plug Power Inc. Safe Harbor Statement
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the number of GenDrive and GenSys units we expect to ship in 2010 through 2012, our projected revenues for 2010 through 2012, and our expectations for achieving profitability and positive cash flow in 2012. We believe that it is important to communicate our future expectations to our investors. However, there may be events in the future that we are not able to accurately predict or control and that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements, including, without limitation, our ability to reduce product and manufacturing costs; our ability to improve system reliability for both GenDrive and GenSys; our ability to successfully expand our product lines; the risk that unit orders will not ship, be installed and/or convert to revenue, in whole or in part; our ability to develop commercially viable products; the cost and timing of developing our products and our ability to raise the necessary capital to fund such development costs; market acceptance of our GenDrive and GenSys systems; our ability to manufacture products on a large-scale commercial basis; competitive factors, such as price competition and competition from other traditional and alternative energy companies; the cost and availability of components and parts for our products; 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 fuel and fueling infrastructures for our products; our ability to protect our intellectual property; the cost of complying with current and future governmental regulations; the impact of deregulation and restructuring of the electric utility industry on demand for Plug Power's energy products; and other risks and uncertainties discussed under "Item IA-Risk Factors" in our annual report on Form 10-K for the fiscal year ended December 31, 2008, filed with the Securities and Exchange Commission ("SEC") on March 16, 2009, and the reports we file from time to time with the SEC. We do not intend to and undertake no duty to update the information contained in this communication.
CONTACT: Plug Power Inc.
Investor Relations Contact:
(518) 782-7700 ext. 1448