Plug Power surges with large sale of fuel cells

Publication Date:16-July-2005
08:00 AM US Eastern Timezone 
Source:Dan Higgins-Times Union
 
Telecom company buys 63 of the systems, which are used as electrical backups

COLONIE -- Plug Power Inc. reported its largest sale to date of its hydrogen fuel cell system. The company said Friday that Tyco Electronics Power Systems, Inc. bought 63 GenCore backup fuel cell systems and resold them to a U.S. telecommunications company.

The telecom company's identity wasn't released. The sale puts Plug closer to its goal of selling 300 systems this year.

Plug spokeswoman Cynthia Mahoney White said the sale price wasn't disclosed, and the total number of GenCore systems sold this year won't be announced until the company releases its second-quarter results later this month.

Plug sold 93 systems last year and 16 in the first quarter of this year.

The list price for the 5-kilowatt GenCore systems is $15,000.

The units are used in place of lead-acid batteries as backup power for phone company equipment like cellphone towers.

"This sale is Plug Power's second significant order in the past month, and we believe that this is indicative of the progress we are making toward our public milestone of 300 GenCore orders this year," said Mark Sperry, Plug's chief marketing officer, in a news release.

On June 16, the company reported that the Florida Department of Environmental Protection would purchase a dozen GenCore units for its field offices.

Plug Power's share price (Nasdaq: PLUG) surged in heavy trading Friday to a close of $6.53, an increase of 10.7 percent. More than 3.1 million shares changed hands on Friday, or three times the average volume.

Smith Barney analyst David Smith said in a research note on Friday that the order "is the largest commercial order seen in the industry for fuel cells and clearly differentiates Plug among its peers as leading the progress toward fuel cell commercialization." His comments were quoted by The Associated Press.

Tyco, Plug's distribution partner, will put its brand name on the GenCore systems along with Plug. Mahoney White said the co-branding is a first for Plug, and Tyco's name recognition will raise its profile among potential customers.