Close X
Sunday, November 17, 2024
ADVT 
National

Ballard says it won't meet 2014 guidance due to contract breaches in China

Darpan News Desk The Canadian Press, 02 Jan, 2015 11:18 AM

    VANCOUVER — Ballard Power Systems (TSX:BLD) says it will fall short of its guidance for 2014 revenue and adjusted earnings as a result of alleged contract breaches by Azure Hydrogen, which was licensed to assemble Ballard products for the Chinese market.

    The fuel cell company says it has given notice that it's terminating two licensing agreements with Azure, one to assemble bus power modules and the other to assemble telecom backup power systems.

    Vancouver-based Ballard says it won't recognize any of the $3 million in revenue it had expected to book from Azure in the fourth quarter and will record an impairment charge of $4.5 million from outstanding receivables owed by Azure.

    The company said in October it expected 2014 revenue to be 20 per cent above the previous year, down from its previous guidance of 30 per cent revenue growth.

    As of Sept. 30, Ballard had recognized US$53.1 million in revenue over three quarters, up 21 per cent from the comparable nine-month period of 2013.

    The company had also reduced its nine-month adjusted loss (adjusted earnings before interest, taxes, depreciation and amortization) to US$2.6 million from US$8.4 million over the first three quarters of 2013.

    In 2013, Ballard had US$61.3 million of revenue and an adjusted EBITDA loss of US$8.4-million.

    Ballard says it will provide further details about the Azure contract in late February when it discusses 2014 audited financial results and its 2015 outlook.

    MORE National ARTICLES

    Alberta Stays In Black Despite Oil Free Fall

    Alberta Stays In Black Despite Oil Free Fall
    Finance Minister Robin Campbell says in his second-quarter update that the forecast budget surplus for this fiscal year has been revised downward to $933 million.

    Alberta Stays In Black Despite Oil Free Fall

    Canada Post On Track To Profit In 2014, Earned $22m In Third Quarter

    Canada Post On Track To Profit In 2014, Earned $22m In Third Quarter
    Despite more people still choosing email over snail mail, the Canada Post Group of Companies says it's on track to earn a profit this year despite an earlier forecast for a multimillion-dollar loss.

    Canada Post On Track To Profit In 2014, Earned $22m In Third Quarter

    More Than 300 Snakes Found In Saskatchewan Home, Some Slithering Off To School

    More Than 300 Snakes Found In Saskatchewan Home, Some Slithering Off To School
    A Saskatchewan family has captured more slithering snakes in their home. And some of the serpents are going to school.

    More Than 300 Snakes Found In Saskatchewan Home, Some Slithering Off To School

    Man Charged With Murder In Lobster Dispute Told Police He Intended To Kill Him

    Man Charged With Murder In Lobster Dispute Told Police He Intended To Kill Him
    PORT HAWKESBURY, N.S. — A man accused of murdering another man at sea in a dispute over lobster told police he intended to kill Phillip Boudreau when he shot at him in a Cape Breton harbour.

    Man Charged With Murder In Lobster Dispute Told Police He Intended To Kill Him

    TransCanada Cuts Ties With U.S. Public Relations Firm Over Campaign Concerns

    TransCanada Cuts Ties With U.S. Public Relations Firm Over Campaign Concerns
    A Canadian pipeline company is cutting its ties with a controversial U.S. public relations firm after leaked documents raised concerns about suggested tactics to promote a planned pipeline. 

    TransCanada Cuts Ties With U.S. Public Relations Firm Over Campaign Concerns

    BC Physiotherapist Convicted Of Sexually Assaulting 8 Women

    BC Physiotherapist Convicted Of Sexually Assaulting 8 Women
    DUNCAN, B.C. — A physiotherapist from central Vancouver Island's Cowichan Valley has been convicted of sexually assaulting eight women.

    BC Physiotherapist Convicted Of Sexually Assaulting 8 Women