Close X
Thursday, November 14, 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

    Canada sending HMCS Fredericton to Mediterranean Sea over Ukraine crisis

    Canada sending HMCS Fredericton to Mediterranean Sea over Ukraine crisis
    HALIFAX — Canada is sending another one of its frigates to help a NATO maritime force aiming to provide reassurance to eastern European allies that are jittery over the crisis in Ukraine.

    Canada sending HMCS Fredericton to Mediterranean Sea over Ukraine crisis

    Edmonton authorities issue Amber Alert for 3 boys abducted from home

    Edmonton authorities issue Amber Alert for 3 boys abducted from home
    EDMONTON — Authorities in Edmonton have issued an Amber Alert for three children.

    Edmonton authorities issue Amber Alert for 3 boys abducted from home

    OSC withdraws securities allegations against former Nortel executives

    OSC withdraws securities allegations against former Nortel executives
    TORONTO — The Ontario Securities Commission has closed its investigation into three former Nortel Networks executives who were acquitted of fraud last year.

    OSC withdraws securities allegations against former Nortel executives

    No smoke: Americans still can't puff with impunity on Cuban cigars

    No smoke: Americans still can't puff with impunity on Cuban cigars
    WASHINGTON — At the cigar lounge two blocks from the White House, Cuban smokes aren't on the menu just yet.

    No smoke: Americans still can't puff with impunity on Cuban cigars

    Wynne hopes Harper doesn't have a 'vendetta' against Ontario

    Wynne hopes Harper doesn't have a 'vendetta' against Ontario
    TORONTO — Ontario's premier hopes Prime Minister Stephen Harper doesn't have a "vendetta" against the people of the province, saying the well-being of Canadians should dictate their working relationship, not his "feelings."

    Wynne hopes Harper doesn't have a 'vendetta' against Ontario

    Majority of Canadians still have holiday shopping to do this weekend: poll

    Majority of Canadians still have holiday shopping to do this weekend: poll
    TORONTO — A new poll suggests that most Canadians are procrastinators when it comes to holiday shopping.

    Majority of Canadians still have holiday shopping to do this weekend: poll