I hope that FCEL converted some of their $11 million in inventory into revenue
FCEL had over $10 million in inventory last quarter and I am really hoping that they converted some of it (or hopefully all of it) into revenue in the 1st quarter. If so, the margins will be their best ever on that revenue from Dominion and we should have a fantastic earnings report. If they haven't converted any than we could be in for another ho hum report. However, I would think they finalized the Dominion deal in early December than tan the news on December 14th. So they had till January 31st to get the first 2.8 MW unit converted into revenue. I think 2 months should have been a reasonable time frame to get this first unit converted into revenue. We shall see.
Wasn't FCEL building components for POSCO. ???
I thought the ramp up in production was for the South Korean projects...which became finalized
just prior to the Dominion news. All fine either way...we still need 30 megs of new business.
I hope they do convert one or both of these. Remember during the time of delivery they will also be manufacturing the remaining three 2.8mw plants. They need five in all for Bridgeport. So inventory levels may actually rise further. But that shouldn't be taken as a bad sign by those following the company. That would all be explained on the CC. And stocks generally trade up on good future forecasts.
From the December press release:
If FCEL must wait until installation of each 2.8mw plant is completed before reporting the revenue, then we won't see this first plant included in Q1 unless the site prep goes very quickly.
I cut and pasted the quote from the Dec PR but Yahoo knocked it out.
Basically it says that the first plant is to be installed in summer 2013 and the remaining plants phased in until all five are installed. They expect the Bridgeport plant to be fully operational by YE 2013.