UPDATE 1-Ballard Power says to miss its 2014 revenue forecast

Fri Jan 2, 2015 9:58am EST
 
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Jan 2 (Reuters) - Canadian fuel-cell products maker Ballard Power Systems Inc said it would miss its 2014 revenue forecast due to the termination of two licensing deals, sending the company's shares down 12 percent on the Toronto Stock Exchange.

Ballard, which said it expected adjusted earnings before interest, taxes, depreciation and amortization to also miss its forecast, terminated two licensing agreements with China-based Azure Hydrogen due to material breaches.

The company said on Friday it will not book any revenue under these contracts in the fourth quarter, and that it expected to record an impairment charge of about $4.5 million.

Ballard said it had expected to collect about $4.5 million from Azure, and to recognize additional revenue of more than $3 million in the fourth quarter under the contracts.

Ballard, which said it was exploring legal options, had signed two agreements with Azure in 2013 and 2014.

The company's Toronto-listed shares were down 11 pct at C$2.12. The company's U.S.-listed shares were down about 8 percent at $1.81 in early trading.

(Reporting By Darshana Sankararaman in Bengaluru; Editing by Sriraj Kalluvila)