FuelCell Energy, which makes fuel cells for electric power generation, said Tuesday it narrowed its fiscal second-quarter loss by 23 percent, better than analysts expected, as revenue fell by nearly 28 percent.
FuelCell Energy shares soared Tuesday to over $5.00. The stock has traded between $1.98 and $9.25 during the past year.
The Danbury, Conn.-based firm said it lost $19.9 million, or 29 cents per share, in the quarter ending April 30 compared to $25.8 million, or 38 cents per share, in the same period of last year.
Revenue slipped to $22.9 million as the credit crisis caused delays in closing U.S. commercial orders, the company said.
Analysts surveyed by Thomson Reuters expected, on average, a loss of 30 cents per share on $27.2 million in revenue.
FuelCell Energy said it has cut spending on internally funded research and development by $900,000 and administrative and selling by $1 million. It also reduced its work force by 6 percent, suspended employer contributions to the 401(k) plan and froze salary levels to reduce costs.
The company said it reduced its cost-to-revenue ratio during the quarter and is on schedule to begin producing megawatt-class products in the third quarter that it expects will be gross margin profitable.