(Adds comments from conference call. Changes dateline, previous TORONTO. In U.S. dollars unless noted)
VANCOUVER, British Columbia, July 29 (Reuters) - Fuel-cell developer Ballard Power Systems Inc. reported a steeper loss in the second quarter on Tuesday, due largely to a writeoff of an equity investment.
The company also adjusted its revenue expectations for 2003 because of lower-than-expected growth in the power generation segment of its business, and timing questions about the development programs of its transportation customers.
Ballard said it had a net loss of $32.5 million, or 28 cents a share, for the quarter ended June 30, compared with a loss of $21.5 million, or 20 cents a share, in the same period a year ago.
The loss included a $7.3 million, or 6 cent a share, writeoff of an equity investment it made in May 2001 in MicroCoating Technologies Inc. (MCT), and $1.8 million, or 2 cents a share, in restructuring costs.
Ballard said it took the writedown on MCT after reviewing the financial condition of the firm, which is developing catalyst application technology, and MCT's prospects for raising additional capital.
Company officials told analysts that while MCT's technology had long-term potential, Ballard felt its own internal development efforts on catalyst development "will provide us with results quicker."
Ballard said revenue in the quarter was $29.1 million, up 36 percent from the $21.5 million for the same period in 2002.
Ballard now expects its revenues for 2003 to be between $100 million and $120 million, compared with previous guidance of between $110 million and $120 million.
Officials told analysts said the change was due largely to economic conditions that cut demand for products using its technology, but acknowledged some of it was due to delays in getting its AirGen portable generators to market.
Ballard bought out its AirGen partner Coleman Powermate Inc this year. Coleman was seen as less interested in the product, but the change required Ballard to establish a new sales and distribution network.
Ballard's shares in Toronto were up as much as 34 Canadian cents in midday trading on Tuesday at C$18.25 after the earnings announcement. On Nasdaq, the Vancouver company's shares were up as much as 27 cents at $13.20.
($1=$1.38 Canadian)