(Adds conference call comments, details, updates stock price. Figures in U.S. dollars unless noted.)
TORONTO, Oct 29 (Reuters) - Ballard Power Systems Inc. reported a narrower third-quarter loss on Wednesday, as the fuel-cell developer cut operating expenses and saw a foreign exchange gain.
Vancouver-based Ballard posted a net loss of $31.1 million, or 26 cents a share, in the quarter ended Sept. 30, compared with a loss of $40.2 million, or 38 cents a share, in the same period last year.
Revenues inched up to $28.2 million from $28.0 million, as weak engineering service revenue was offset by stronger product sales.
Cash used by operations and capital expenditures was $17.8 million, against $37.7 million in the year-ago quarter. This did not include restructuring and integration costs of $2.7 million in the quarter.
The company reiterated its guidance for 2003 revenues in the range of $100 million to $120 million, and said it expects its cash requirements for the full year to be between $55 million and $65 million, down from its previous forecast of $65 million to $75 million.
Ballard cited the strength of the Canadian dollar and the euro versus the U.S. dollar as the main reason for the improvement. Cash and cash equivalents at the end of the quarter were $336.9 million.
Company officials told analysts it was too early to give 2004 guidance because they were still preparing a budget, but sales of light-duty cells for the transportation market were expected to be a leading source of revenue.
The company is still working out design problems with the canisters used to store hydrogen with its AirGen portable generators, which has delayed getting the product to the consumer market.
Ballard, which bought out Coleman Powermate's stake in the AirGen project last year, said in its earnings news release that it was working with suppliers and expects to launch a canister-fueled version of the product next year.
Ballard shares on the Toronto Stock Exchange climbed to C$17.70 in early trading but slid to C$17.45 by midday, down 15 Canadian cents from Tuesday's close. It's shares on Nasdaq were down 11 cents at $13.29.
($1=$1.31 Canadian)