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

    Body Of Missing Boater Found In B.C.'s Gulf Islands A Week After Disappearance

    Body Of Missing Boater Found In B.C.'s Gulf Islands A Week After Disappearance
    SATURNA, B.C. — The RCMP say divers have recovered the body of a young man who disappeared when a rowboat he was in capsized in B.C.'s southern Gulf Islands.

    Body Of Missing Boater Found In B.C.'s Gulf Islands A Week After Disappearance

    Woman saved by pig liver 20 years ago reunites with medical team

    Woman saved by pig liver 20 years ago reunites with medical team
    MONTREAL — Mavis McArdle says she doesn't feel weird at all that a pig's liver helped save her life.

    Woman saved by pig liver 20 years ago reunites with medical team

    Regina high school exchanges Redmen nickname for Bears after consulting elders

    Regina high school exchanges Redmen nickname for Bears after consulting elders
    REGINA — A Regina high school has a new name.

    Regina high school exchanges Redmen nickname for Bears after consulting elders

    Vancouver School Board Calls on BC Government to Support Graduated Adults

    Vancouver School Board Calls on BC Government to Support Graduated Adults
    Vancouver, BC – Earlier this week the Vancouver School Board passed a motion calling on the BC Government to immediately reverse the announced cuts to BC school districts for graduated adults who plan to upgrade their courses. 

    Vancouver School Board Calls on BC Government to Support Graduated Adults

    Obama on whether he'd consider Republican Keystone bill: 'I'll see what they do'

    Obama on whether he'd consider Republican Keystone bill: 'I'll see what they do'
    WASHINGTON — U.S. President Barack Obama spent five minutes today disparaging the potential benefits of the Keystone XL pipeline project. He then kept it alive with five words.

    Obama on whether he'd consider Republican Keystone bill: 'I'll see what they do'

    Russians face oil-sector sanctions, new travel restrictions, over Ukraine

    Russians face oil-sector sanctions, new travel restrictions, over Ukraine
    OTTAWA — Canada has once again imposed new sanctions against Russia in response to its incursions into Ukraine.

    Russians face oil-sector sanctions, new travel restrictions, over Ukraine