Growing Revenue And Expenses For Plug Power Inc (NASDAQ:PLUG)

[[tagnumber 0]][[tagnumber 1]]When Plug Power Inc (NASDAQ:PLUG) announced Q1 earnings back in May, it reported a loss of $11.1 million, which transformed into a loss of $0.07 per share, and missed analysts‘ expectations on top of that. Back then, investors didn‘t seem to pay attention and the stock did not suffer on the charts at all. When that same company unveiled a much different Q2 last week, the stock slumped by 15 percent and has so far failed to repair any of the damage. Was the damage justified, though?[[tagnumber 2]] [[tagnumber 0]]For a start, let us draw some parallels. During the quarter ended June 30, 2015, PLUG generated a record–breaking revenue in excess of $24 million, which is 155% more than the top line registered in the preceding quarter and a 38 percent improvement over the Q2 2014 score. The company also announced bookings worth more than $59 million, which is almost 50 percent more than Q1 2015. Even the net loss of $9.2 million is 17 percent lower than the loss incurred in the quarter prior.[[tagnumber 2]] [[tagnumber 0]]So far so good, or at least so it seems. For the newly submitted 10–Q contained some flaws, as well.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 8]]Revenues soared but so did production costs with the latter ending up twice as much as in Q1 2015. In addition, PLUG‘s net result on a per–share basis deteriorated from a profit of $0.08/per share to a loss of $0.06/per share. What is more, cash reserves dwindled 18 percent to $109 million and so did the company‘s net working capital which slid down 13 percent to $135.8 million, again as compared to the preceding quarter.[[tagnumber 2]] [[tagnumber 0]]As it is, PLUG‘s growing revenues are still not growing at a pace that will allow the company to turn profitable. The thing is, the company‘s prospects for making money are dependent upon a great many factors such as quantity of orders and shipments, solvent customers with free access to finacing, developing distribution channels and market acceptance to name but a few. Unless these prerequisites are cumulatively achieved, the company‘s route to the break–even point might be delayed.[[tagnumber 2]] [[tagnumber 0]]Even though PLUG‘s top line is on the increase, Plug Power Inc still remains subject to a fairly high credit concentration risk due to the fact that more than 95% of its revenues came from as many as three customers. Broadening the customer base will certainly relieve the company of such risk.[[tagnumber 2]]