FuelCell Energy Inc. plans to raise $30 million in a public offering of stock and use the proceeds for product development, product financing and expansion of manufacturing capacity among other purposes.
Danbury-based FuelCell makes fuel cells that siphon off electrons from hydrogen atoms to produce electricity with no harmful emissions, with South Korea-based POSCO Power a major customer. The company lost $32 million in the quarter ending April 30 on revenue of $16.6 million.
In a conference call with investors earlier this month, CEO Dan Brdar said he expects business to pick up through October when the company”™s fiscal year ends.
“The activity level that we see in the marketplace really has us seeing customers moving towards wanting to continue with their projects,” Brdar said. “Remember, there are projects in California. There are time limits in terms of the availability of their incentive funds. We are seeing having the units installed in South Korea (as) being a driver for other utilities, so they can go see an operating unit; (it) raises their confidence level that it really is an industrial grade product. So these things together are really driving what we are seeing as a pretty significant increase in the activity level in the pipeline.”
