Close X
Tuesday, November 26, 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

    Former Vancouver Stealth Head Coach Chris Hall Dies Of Cancer At 64

    Former Vancouver Stealth Head Coach Chris Hall Dies Of Cancer At 64
    VANCOUVER — Chris (C.H.) Hall, former head coach of the National Lacrosse League's Vancouver Stealth, has died after a four-year battle with cancer.

    Former Vancouver Stealth Head Coach Chris Hall Dies Of Cancer At 64

    Canada faces new Cold War in Europe and hot war against ISIL in Iraq in 2015

    Canada faces new Cold War in Europe and hot war against ISIL in Iraq in 2015
    OTTAWA — It could very well be that 2014 is remembered as the year when Canada traded one shadow war for possibly two others.

    Canada faces new Cold War in Europe and hot war against ISIL in Iraq in 2015

    Man arrested in Montreal on terrorism-related charge

    Man arrested in Montreal on terrorism-related charge
    MONTREAL — A Montreal man is facing a terrorism-related charge after police were tipped off by his family that he had recently become radicalized.

    Man arrested in Montreal on terrorism-related charge

    Man charged with kidnapping, attempted murder of six-year-old in Alberta

    Man charged with kidnapping, attempted murder of six-year-old in Alberta
    EDMONTON — A 21-year-old man has been charged with attempted murder, aggravated sexual assault and kidnapping in an attack on a six-year-old girl on a reserve west of Edmonton.

    Man charged with kidnapping, attempted murder of six-year-old in Alberta

    Minister Steve Ashton resigns, says he will seek leadership of Manitoba NDP

    Minister Steve Ashton resigns, says he will seek leadership of Manitoba NDP
    WINNIPEG — Manitoba's transportation minister says resigning from cabinet before launching a leadership campaign to become the province's next premier was the honourable thing to do.

    Minister Steve Ashton resigns, says he will seek leadership of Manitoba NDP

    Man charged in Calgary after unlocked running SUV was stolen with baby inside

    Man charged in Calgary after unlocked running SUV was stolen with baby inside
    CALGARY — A young man has been charged after an SUV was stolen in Calgary with a sleeping baby inside.

    Man charged in Calgary after unlocked running SUV was stolen with baby inside