Hello, this is the conference operator. Welcome to the Ballard Power Systems Q3 2012 Conference Call and webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. Please limit your questions to two so that others may participate. You’re welcome to rejoin the queue if you have additional questions. (Operator Instructions) I will now turn the conference over to Guy McAree, Director of Investor Relations. Please go ahead, sir.

Thanks, very much. Good morning, everyone. Today’s call is to discuss Ballard’s third quarter 2012 operating results. And with us here today, our John Sheridan, Ballard’s President and CEO; and Tony Guglielmin, our Chief Financial Officer. We’re going to be making forward-looking statements, based on management’s current expectations, beliefs and assumptions concerning future events. Actual results could be materially different. For a detailed discussion of these statements and the assumptions used in generating them and the risks and uncertainties that could cause actual results to be materially different, please refer to our press release issued last night, and our most recent annual information form and other filings. Note the Ballard reports financial results in accordance with IFRS. In addition, results are consolidated to include Dantherm Power, and are in U.S. dollars unless otherwise noted. Now I’ll turn it over to John Sheridan now.

Thanks, Guy. Good morning, everyone and thanks for joining us today, especially those of you in the east who are coping with the aftermath of hurricane Sandy. Tough-tough times for many-many people, especially in New York and New Jersey. It’s been a violent and a destructive storm that has highlighted once again the vulnerability of communications networks to power disruptions. Beyond the human concern we’ve monitored the impact of this storm with special interest as we have 20 of ElectraGen methanol systems deployed in the Bahamas, which was hit as you know by the early stages of the hurricane, and we are very pleased to hear from our customers that the systems operated flawlessly providing extended runtime backup power for 72 hours when it was critically needed during the storm. But turning back from the storm to Q3 results, our focus today, of course. As you know on October 9th, we revised failure guidance, so that’s where I’ll begin. The decision of revise guidance was based on our preliminary estimates for a weaker than expected Q3 and a softer outlook for Q4. The unexpected weakness was primarily due to continued soft demand in material products and delays and timing issues in the two development stage Fuel Cell Product segments of bus and distributed generation. We reference bus and DG as development stage given the sales in these two segments still require government support or subsidies. This is in contrast to backup power in material handling where sales are based on simple commercial value props. As such we view backup power and the chip material handling is commercial stage segments. And I have note in this commercial stage segments, we are continuing to see growth that is pretty much on track with our plan. Also as reported in past calls we…

Thanks, John. I’m going to begin by addressing the key drivers for the bottom line profitability gross margin and cash operating cost. Let me start first with the Q3 cash operating cost, which were $7 million an improvement of $2.3 million or 24% compared to compared to Q3 last year. Our year-to-date cash operating cost were $24.4 million a 20% improvement over 2011. As John mentioned, we continue to make progress on our OpEx management, which is really a multi-faceted program this year that has included reduced facility cost, the restructuring of our corporate bonus plan, reductions in discretionary expenses, redirection of our engineering resources to revenue generating projects and a 7% reduction in the workforce which announced or which we implemented midyear. So with that we expect cash operating cost to be in the $30 million range for the year, down from $39.3 million last year and we should expect to see cash OpEx in the mid to high $20 million next year reflecting the full year benefit of the 2012 cost reduction initiatives. So turning to gross margin, in the quarter gross margin was 14% down 5 points compared to Q3 last year and 17% year-to-date, down 1 point compared to last year. This was predominantly due to product mix in the quarter, with the lower proportion of high-margin bus modules and also due to high unabsorbed overheads as a result of relatively low overall sales volumes. As said with the project revenue growth in Q4, including a higher proportion of the high-margin engineering services business, we expect gross margin of approximately 20% for the full year. As we look into to 2013, at this stage we would expect gross margin to be in the mid 20s next year. Adjusted EBITDA loss increased 10% to negative $5.5 million…

(Operator Instructions) First question is from Emily McLaughlin of Stifel Nicolaus.

Hey good morning. I just want to talk a little bit about the bus end market. Obviously it’s been challenging. Looking out a little bit about what’s going on in Brazil and the visibility you have there for 2013?

Thanks for the question. And I guess the (inaudible) we found the Brazil experience for our company doing business there for the first time, a little bit of a process of discovery with some significant disappointments along the way, of course having signed a letter of intent to move forward with the significant contract. We still think the market is very significant in terms of potential. We still see good underpinnings for fuel cell bus developments there. But having learned the tough way on the challenges of business in Brazil, we are not going to get ahead of ourselves again. So when we have something specific to report, we will be pleased to do so. But until then, we’re not going to give any type of speculation going forward on timing or potential. So that kind of leaves that the bus focus we’ve got is where we do have government support and as ironic as it is, a stronger government support and funding in the EU right now, so we continue to work with Van Hool on a number of opportunities partly with EU JTI support. We’re very pleased to get traction with Tata on Airbus development program, although that’s early stage, a fairly small program. And we continue to work in North America principally the U.S. But they’re pretty small programs at this point. So just a bit more broadly and to make sure I didn’t mislead anyone, when we talk about bus more specifically now as a development stage opportunity for us, it’s not that we’re backing off bus, because we really do believe as a significant opportunity of the value prop for fuel cells. But we just want to be realistic with what we see as just lower timeline for development.

Sure. And just to confirm there were no shipments to Van Hool in the quarter?

That was correct. In Q3 there were no shipments to Van Hool.

Okay. And switching gears a little bit, do you have an update on the Motorola tender for Norway’s petro project?

Again, no, only broadly we continue to work closely with Motorola. We’re very pleased with the relationship we’ve got with Motorola. The value prop for our systems is very, very strong. So we’re confident of prospects. The project is a complex one and a big one, a big price tag on it. So it’s high profile within the Norwegian government. So it looks like and not to repeat the same theme, but it looks like the timelines for contracting is longer than we had anticipated. So realistically we are now looking at contracting in the probably late first quarter, early second quarter of 2013. So in terms of shipments, in terms of business, that would be something now we’re positioning for the back half of 2013. So the timing has changed but the size of the contract, the business potential we still see as very significant.

Great. Okay. That’s all for me. Thanks a lot.

(Operator Instructions) There are no further questions at this time. I’ll turn the conference back to John Sheridan.

Thanks operator and again thanks everybody for joining us today. With markets closed for a couple days and everything going on in the aftermath of the hurricane, we didn’t expect a lot of participation on this call. So for those of you that did join us, thanks again. We’re looking forward to a solid Q4 and reporting on that along with our 2013 outlook in February. Thanks very much.

Ladies and gentlemen, this concludes today’s conference call. You may disconnect your lines. Thank you for participating. Have a pleasant day.