SFC Smart Fuel Cell AG: Revenues, Gross Margin and EBIT Significantly Up from Same Quarter in Previous Year

SFC Smart Fuel Cell AG / Quarter Results

27.04.2010 08:10

Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.

- Revenues up 25.1% from Q1/09 - driven by product sales in civilian     markets

- Gross margin increased to 29.8% from 18.5% in Q1/09
- Demand for higher power fuel cells from SFC increasing
Brunnthal, 27 April 2010 - SFC Smart Fuel Cell AG, the technology and market leader for mobile and off-grid energy solutions based on fuel cells, generated revenues of EUR 3,595k in the first quarter of 2010. This 25.1% increase from the same quarter in the previous year (Q1/09: EUR 2,873k) is at the upper end of our expectations and is primarily attributable to increased sales of the Company's EFOY- and EFOY Pro fuel cell systems.
The gross profit on sales also increased significantly, from EUR 531k in the previous year period to EUR 1,073k. As a result of the revenue effects described above, increased efficiencies in logistics and production and reduced costs of fuel cartridges, gross margin increased in Q1/10 to 29.8% (Q1/09: 18.5%) of revenues. This increase contributed considerably to an improvement of the EBIT of minus EUR 1,175k in Q1/09 to minus EUR 833k in Q1/10. The after-tax result improved to minus EUR 735k (Q1/09: minus EUR 874k).

Overall, 1,363 A Series fuel cell systems (EFOY, FC 250, EMILY) were sold in Q1/10 (Q1/09: 1,121), which represents a 21.6% increase. The strong increase in sales revenue was primarily the result of changes in the model mix to higher performance fuel cell systems. The EFOY 2200 and EFOY Pro 2200 models introduced in Q4/09 were particularly successful in this regard. SFC sold more units in both the leisure and the industrial markets in Q1/10 than in the same period last year. This was due to an initial recovery in the Company's civilian markets and the increasing awareness and attractiveness of SFC's power supply solutions in off-grid applications. The defense market continued to be difficult to predict in Q1/10; nevertheless, SFC again made sales in this market with the FC 250 und EMILY fuel cells, which were developed especially for the defense industry.
The freely available cash at March 31, 2010 stood at EUR 38,298k (December 31, 2009: EUR 40,544k).

In view of the high level in Q4/09, order intake in Q1/10 was satisfactory: it was up 3.1%, from EUR 2,342k in Q1/09 to EUR 2,416k. Overall, the order book on March 31, 2010 was EUR 2,233k (Q1/09: EUR 1,185k).
The Group anticipates sales in the Leisure segment in financial year 2010 to remain at their 2009 level, given the continued challenging market environment. In contrast, the Group anticipates noticeable growth in sales in all of its civilian markets. An important strategic goal remains to make SFC less vulnerable to seasonable and economic fluctuations in the leisure market and the continued unpredictability of the defence market by drawing on a more diversified base. It is difficult at this time to assess the trend in the Defence segment, but decisions about important projects are pending, and an award in favour of SFC is still to be anticipated during the first half of the year. The aim of continuous improvements in product margins, in conjunction with sales growth, is to improve operating profit (EBIT) in 2010, even with the anticipated special effects (expansion of the U.S. organization and the move to the new Company location). However, because of the continuing uncertain state of the economy, we believe that our sales forecasts are still subject to considerable uncertainty.
The Group expects that the planned broadening of the business model will provide added stimulus. Most customers require a turnkey package solution, not just a fuel cell system. With the introduction of products such as the EFOY Pro Cube and the SFC Power Manager in the industry and defense markets, SFC has already been successful with whole-product solutions. We intend to build on this foundation to broaden our product portfolio with the goal of developing the Group into a provider of comprehensive off-grid power supply solutions.

The Company sees interesting medium term business potential in the attractive e-mobility market. In April, SFC and the renowned Automotive Engineering Partner ESG Elektroniksystem- und Logistik GmbH presented a concept of combined heat and power generation which can significantly improve performance of electric vehicles even in winter conditions.
The quarterly report of SFC Smart Fuel Cell AG can be downloaded from the Company's website at www.sfc.com.

About SFC Smart Fuel Cell AG

SFC Smart Fuel Cell AG (www.sfc.com) is a market leader for mobile and off-grid power generation on the basis of fuel cell technology, for applications in the leisure, industry and defense markets. As one of Germany's technology pioneers, SFC has received numerous prizes for innovation. SFC cooperates with leading companies in various industries. Unlike most other fuel cells firms, which are still in the development phase or operate subsidized demonstration equipment, for more than five years SFC has successfully sold 18,000 fully commercialized fuel cells to industry and end consumers. The Company also has an established, operating fuel cartridge structure. SFC is DIN ISO 9001:2008 certified. The Company has its headquarters in Brunnthal, Germany and has a sales and service office in the United States. SFC Smart Fuel Cell AG is listed in the Prime Standard of the Deutsche Börse (WKN 756857).

SFC Investor Relations:
Barbara von Frankenberg 
Head of IR and PR
SFC Smart Fuel Cell AG
Eugen-Sänger-Ring 7
D-85649 Brunnthal 
Tel. +49 89 673 592-378
Fax. +49 89 673 592-169
Email: [email protected]

27.04.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

Language:     English
Company:      SFC Smart Fuel Cell AG
              Eugen-Saenger-Ring 7
              85649 Brunnthal
Phone:        +49 (89) 673 592 - 100
Fax:          +49 (89) 673 592 - 169
E-mail:       [email protected]
Internet:     www.sfc.com
ISIN:         DE0007568578
WKN:          756857
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, München, Düsseldorf, Stuttgart  
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