Using the Hydrogenics common size-income statement analysis, analyze the profitability of Hydrogenics.

Hydrogenics Corporation (HYGS/NASDAQ) Annual Common Size Income Statement Summary percentages in Italics will not foot due to rounding Results for the Years Ending Dec 31, 2013 Dec 31, 2012 Net sales Less: Cost of goods sold Gross profit Sales, general and administrative Research and development (R&D) Restructuring, impairment, and amortization Purchased in process R&D Other operating expenses Total operating expenses Operating profit (loss) Other income (expenses), net excluding interest expense Earnings (loss) before interest and taxes Interest expense Earnings (loss) before taxes Provision for (benefit from) income taxes Earnings (loss) after taxes Extraordinary items, net Discontinued operations, net Cumulative effect of changes in accounting principles, net Other after-tax income (loss), net 100.0% 71.6% 28.4% 38.4% 6.1% 0.0% 0.0% 0.0% 44.4% (16.0%) 0.0% (16.0%) 1.0% (17.0%) 0.0% (17.0%) 0.0% 0.0% 0.8% (49%) 100.0% 83.4% 16.6% 41.1% 14.0% 0.0% 0.0% 0.0% 55.1% (38.6%) 0.1% (38.5%) 1.0% (39.5%) 0.0% (39.5%) 0.0% 0.0% 0.5% (1.4%) Net profit (loss) (21.0%) (40.4%) Effective tax rate NM NM