Hydrogenics cutting 50 jobs, reports deeper Q4 loss
Last Updated: Wednesday, March 21, 2007 | 4:18 PM ET
CBC News
Hydrogenics Corp. said it is cutting 50 jobs as losses deepened at the Mississauga, Ont., developer of hydrogen and fuel cell products.
The company said Wednesday that the elimination of 50 full-time equivalent positions across all business units will result in a one-time pre-tax charge of approximately $2.1 million in the current quarter.
Hydrogenics said the cuts will save it about $4 million annually.
The company reported a fourth-quarter loss of $22.1 million US, or 24 cents a share, compared with a loss of $9.1 million US, or 10 cents a share, in the same quarter of the previous year.
Hydrogenics said about $10.9 million of the most recent loss comes from a charge against intangible assets and goodwill relating to its OnSite Generation business. The OnSite business experienced production delays during the year, the company said.
"Unfortunately, these production delays, caused by supply chain and component quality issues in this business unit, adversely impacted our results for the year," said Daryl Wilson, Hydrogenics' president and CEO.
Revenues for the fourth quarter were $9.5 million, a four per cent increase over the fourth quarter of 2005.
Wilson said the company's goal with its restructuring is to cut its annual cash consumption by at least one-third.
Shares of Hydrogenics slipped nine cents to finish at $1.15 on the TSX.
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