Ballard loss widens on acquisition costs

VANCOUVER, British Columbia, April 29 Reuters reported that Fuel cell developer Ballard Power Systems Inc. said on Monday its loss widened in the first quarter on costs associated with acquiring full ownership last year of its XCELLSIS and Ecostar units

The company reported a net loss of $50.7 million, or 48 cents per share, in the three months ended March 31, compared with a net loss of C$14.1 million, or 16 cents per share, in the same period last year.

The company said that not including the costs associated with the integration of XCELLSIS and Ecostar it would have posted a loss of 41 cents a share.

Analysts polled by Thomson Financial/First Call had been expecting a loss of about 39 cents a share.

Ballard, whose production of fuel cells is still geared to supplying testing programs for products such as automobiles, said it had revenues of $12.1 million, up from C$3.8 million a year earlier.

The company said it "remains comfortable" with its earlier guidance on revenues of $82 million for 2002, and cash burn of between $122 million and $142 million. The company had $360 million cash on hand at the end of the quarter.

In October, Ballard acquired Ford's and DaimlerChrysler's stakes in fuel cell engine maker XCELLSIS and the Ecostar Electric Drive Systems LLC for $348 million. Both of the automakers own a stake in Ballard and signed long-term supply agreements as part of the deal.

The company's shares on the Toronto Stock Exchange closed down C$1.25 at C$39.55 on Monday before the earnings were announced. The shares on Nasdaq were down 91 cents at $25.34.