Bloom's latest blemishes: Delaware job cuts and multimillion dollar "accounting error" (Karl Baker)
Recap and comment on a Karl Baker story in the News Journal: Bloom Energy reported that its revenues have been overstated by “less than 10 percent,” potentially amounting to a cumulative adjustment of nearly $200 million. The issue doesn’t affect cash flow, only the timing of revenue recognition. See also Bloom Energy has provided incorrect financial data since IPO, Jeremy Owens, Marketwatch.com, 2/13/20. There may also be job cuts at the Bloom Energy plant in Delaware, although a company representative says job increases are envisioned as well and the net result will be headcount of some 340.
Note the manner in which Bloom attempted to minimize the embarrassing accounting adjustments. Director John Doerr reportedly cited Bloom’s “long track record of groundbreaking innovation that is overseen by a highly engaged Board and experienced management team.” CEO K.R. Sridhar added that the company grew its business in the second half of 2019 and is looking “forward to presenting our detailed Q4 and end of year results.” In our view, Bloom’s track record has been mediocre. Compare How Bloom Energy blew through billions, Christopher Helman, forbes.com,2/13/20.