FuelCell Energy Inc (FCEL)

[fsulevine]

With the expansion of the manufacturing facility nearly complete, they will have 200 MW of annual production capacity at full staff. However, right now, the actual production was 25 MW annually (though I am thinking that will be going up soon), due to the product order backlog. They simply didn't have the orders to fill to take advantage of what they have the capacity to produce. With the current backlog, if they were running at full capacity, they would have nothing left to build in 4 months unless new orders came through. They are trying to match their annual production rate with the orders they need to fill until several more orders come in. It was one of the reasons they switched their strategy to owning some plants... so they can build and install them, taking the monetary hit up front, and just selling the power from them and collecting over 20 years.