Stock Alert: Bloom Energy Falls 12% On Restating Financial Results

(RTTNews) - Bloom Energy Corp. (BE) plunged 12% on Thursday morning trade after the company announced that all its financial results reported during and since its IPO will have to be restated due to an accounting error.

BE is currently trading at $9.20, down $1.26 or 12%, on a volume of 2.5 million shares, below the three-month average volume of 2.9 million shares. The company announced it will restate certain prior period financial statements due to an accounting error related to its Managed Services Agreements. MSAs are one of the company's three customer financing options to acquire Bloom Energy servers. The revenue for the Managed Services transactions will now be recognized over the duration of the contract instead of upfront. Bloom Energy said the adjustment has no impact on its total cash and cash equivalents or cash flows. Bloom Energy expects to report its fourth-quarter and full-year results on or before March 16. CEO KR Sridhar said, "In the second half of 2019, Bloom Energy saw strong growth in the business. This momentum in customer engagement and demand continues to be driven by the attractiveness of our AlwaysON Microgrid offering in the face of continued grid outages and utility rate increases across the United States."