Raser Technologies Inc. (RZ) reported a loss per share of 5 cents, less than the Zacks Consensus loss per share estimate of 13 cents in the third quarter of fiscal 2009. Also, net loss of 5 cents per share is less than half compared to the year-ago loss of 13 cents per share.
The improvement in earnings came despite shares outstanding increasing to 74.9 million in the reported quarter from 57.8 million in the year-ago quarter. The revenue front, the company reported revenue totaling $0.8 million as compared to $0.03 million during the year-ago quarter. The improvement was due to the initiation of a revenue stream from selling electricity generated by its geothermal power plant to the city of Anaheim.
During the reported quarter, the company generated and sold approximately 9,819 MW hours of electricity. Similarly in the reported quarter, cost of sales rose to $2.9 million compared to nil in the year-ago period. The increase in the cost of sales was primarily due to sale of electricity from the geothermal power plant and annual property tax assessments.
Raser’s total operating expenses decreased $2.7 million to $4.0 million year-over-year from $6.7 million. General and administrative expenses remained flat at approximately $2.4 million for the third quarters of both the fiscals 2009 and 2008. Power project development expenses decreased to $1.2 million as compared to $3.2 million in the year-ago period.
Research and development expense decreased from $0.97 million in the year-ago period to $0.37 million. Raser reported cash and cash equivalents of $3.8 million and restricted cash and marketable securities of approximately $16.8 million at the end of the first nine months of fiscal 2009.
At year-end fiscal 2008, the company had $1.5 million in cash and cash equivalents and $27.5 million of restricted cash and marketable securities. The company used $24.7 million of cash in operating activities at the end of the first nine months of fiscal 2009, compared to $10.1 million in cash used at the end of the first nine months of fiscal 2008.
Long term liabilities increased to $79.9 million at the end of the first nine months of fiscal 2009 from $80.1 million at the end of fiscal 2008.
Read the full analyst report on “RZ”
Zacks Investment Research
