Hydrogenics Corp (Toronto:HYG.TO; NasdaqGM:HYGS), which develops hydrogen and fuel cell products, received a letter from the Nasdaq Stock Market indicating that it is out of compliance because the stock has closed below the minimum $1.00 per share requirement for the past 30 consecutive business days.
To regain compliance, the stock must be $1 or more for a 10-day consecutive period during the next 6 months.
In its Q1 financial results, HYGS reported a 12% rise in revenues, year over year, a $30.8 million order backlog, and actions implemented to deliver $4 million of annualized cost savings.
“During the first quarter we undertook a comprehensive analysis of our operations. As a result of this analysis we implemented a restructuring and streamlining of our operations to reduce our overall cost structure, and as anticipated, we effected the majority of this initiative by March 31, 2007,” said Daryl Wilson, President and CEO. “This initiative, as previously communicated, along with an improved order intake and the phased resumption of deliveries in our OnSite Generation business unit is anticipated to allow us to reduce annual cash consumption by a minimum of one third on an annualized basis”
Revenues were $6.9 million for the first quarter of 2007, a 12% increase from revenues of $6.1 million for the comparable period of 2006 and reflects increased revenues in the Power Systems and Test Systems business units of 36% and 34%, respectively, partially offset by a 24% decrease in revenues in the OnSite Generation business unit, attributed to a phased return to historical production levels.
Gross profit, expressed as a percentage of revenues, was 13% (17% in 2006) and reflects lower overhead absorption in our OnSite Generation business unit due to the gradual resumption of production.
Net loss was $8.3 million for the first quarter of 2007, consistent with the first quarter of 2006.
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