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August 20, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Danbury’s FuelCell Energy cuts 135 jobs as losses continue to mount

In its latest bid to improve its bottom line, Danbury’s FuelCell Energy has eliminated 135 positions – a move it said will, along with recent retirements, save it $11.5 million annually in payroll.

Photo courtesy of FuelCell Energy.

Among those retirements is that of Senior Vice President and COO Anthony Rauseo, who left on April 12.

The moves were included in an 8-K filing with the U.S. Securities and Exchange Commission. “The company has already implemented spending reductions throughout the business in order to lessen the impact of the workforce reduction,” wrote Senior Vice President, CFO and Treasurer Michael Bishop.

“With the recent completion of several research and development initiatives, including the design, development and launch of the SureSource 4000 high-efficiency fuel cell and other critical path projects, it was necessary to look at the company’s operations and costs to align them with business needs and objectives,” Bishop said.

Despite a number of high-profile deals – including signing long-term power purchase deals with utilities around the state; receiving a $1.5 million grant from the U.S. Department of Energy for hydrogen production research and development that is compatible with nuclear energy sources; and signing an agreement to acquire the existing 14.9 megawatt fuel cell park in Bridgeport from Dominion Energy for $36.6 million, all in 2018 – the Danbury company has had a rough go of it financially.

Total revenues for the fourth quarter of fiscal year 2018 were $17.9 million, compared with $47.9 million for the previous fourth quarter. Total revenues for the first quarter of fiscal 2019 were $17.8 million, compared with $38.6 million for the previous first quarter.

In addition, the company’s stock has dipped below $1 – and remained there – for several months. In December, Nasdaq issued a letter to FuelCell warning that it could be delisted from the exchange if it fails to meet its minimum price requirement of $1 by May 28, 2019, and remain there for a minimum of 10 consecutive business days. It closed last night at 28 cents.