Hydrogenics Corporation (USA)(NASDAQ:HYGS) shares tumbled 10% pre-market Tuesday after the maker of hydrogen-based power systems provided an outlook for Q4, noting that it will not hit FY14 targets due to supplier material issues.
The company said two projects scheduled for shipment in Q4 will be delayed and that the associated revenues of $5 million will be booked in Q1 2015.
Hydrogenics Corporation (HYGS) CEO Daryl Wilson said, “”Supplier material issues have, unfortunately, caused near-term delays in planned shipments to two important customers this quarter. These supplier constraints, exacerbated by the fact that the materials in question failed our internal quality inspection process, means that customer shipment is impossible until early in the first quarter of 2015.”
Wilson also noted that while the firm is still targeting positive adjusted EBITDA in Q4, it will not reach its target of over $50 million in revenues and break-even adjusted EBITDA for the full-year.
On a more positive note, Wilson said the company’s long-term outlook has not changed and that it anticipates “strong growth in power-to-gas applications and utility-scale power generation fuel cell projects in the coming year.”
Hydrogenics Corporation (USA)(NASDAQ:HYGS) shares were off 9.9% at $10.90 in recent pre-market trade, moving below the low end of the 52-week range of $11.70-$35.52.