Fuel cell technology firm Plug Power Inc is strengthening its financial position and moving towards the end of operational losses, the company says.

"I believe we are at the cusp of success," Andrew Marsh, president and CEO, says on a conference call. "Costs are coming in line, expenses have been reduced and our products are performing now as expected at customer sites."

Six weeks earlier, Plug Power was contemplating a possible sale of the company.

The call followed the 14 May release of first quarter financial results. Plug Power lost USD8.6 million on sales of USD6.4 million for the quarter ended 31 March. It lost USD6.6 million on sales of USD7.8 million for the 2012 first quarter.

Marsh underscores improvements and, by mid-2014, projects a breakeven result on combined government and service activity on the basis of income before interest, taxes, depreciation and amortisation.

"We have dramatically improved quality, added to our customer list and enhanced our financial position," he says. "The sales prospects and funnel remain strong for the rest of the year, and we expect the business steps taken over the past six months will result in increased customer traction."

Recently, Plug Power shipped product to support the opening of a Lowes Cos Inc distribution centre in Rome, Georgia, and completed the fuel-cell conversion of more than 250 forklifts at Wal-Mart Stores Inc's Washington Courthouse, Ohio, facility.

Plug Power has shipped more than 4,000 GenDrive-brand units to 23 customers. Plug Power says the units consume more than 90% of the hydrogen fuel used to power fuel cell products in North America. In powering forklifts, Plug Power's products compete primarily with lead-acid batteries.

Paris-based industrial gas supplier L'Air Liquide SA is making a USD6.5 million (EUR5 million) strategic investment in Plug Power at a premium above market pricing. Disclosed on 8 May, the investment includes a preferred stock purchase, increased ownership of a joint venture and an engineering services contract. Air Liquide has operations in more than 80 countries.

"Air Liquide is a respected industry player, which is why this investment is a great validation of Plug Power's strategy," Marsh says. Including this investment, Plug Power says it has raised USD12 million so far in 2013.

Air Liquide's investment involves:

 USD2.6 million (EUR2 million) in convertible preferred stock with a 60% conversion premium to market and an 8% coupon. As part of the stock purchase, an Air Liquide representative will join Plug Power's board of directors. The parties have signed a securities purchase agreement for the investment. The transaction is expected to close no later than 22 May.

 USD3.3 million (EUR2.5 million) to buy 25% of Plug Power's interest in HyPulsion, a joint venture between Plug Power and Air Liquide subsidiary Axane to market hydrogen fuel cells in European markets. After the investment, Plug Power owns 20% of HyPulsion and has a right to purchase a majority interest in 2018.

 A USD659,000 (EUR500,000) engineering service contract to accelerate developing the European hydrogen forklift market with the "Europeanisation" of key components.

Johannes Minho Roth, founder of asset management firm FiveT Capital AG, of Zürich, Switzerland, has joined the Plug Power board.

Marsh says Roth and the Air Liquide representative bring "international experience" to Latham-based Plug Power's board.