But Roger B. Saillant, Plug's president and chief executive, said the company would use its accomplishments in 2004 -- including signing a five-year agreement with the state to provide backup power systems to government entities -- to improving the bottom line this year.

Saillant also said the company expected to sell 300 of its GenCore fuel-cell systems -- or nearly triple the number it has sold since 2003. The GenCore systems are used as backup power for telecommunications, cable broadband and other customers. Officials at Plug said they based their optimism on the fact that the company has 20 of the systems, which cost about $15,000 each, on back order, and that two telecommunications companies have expressed interest in the system. Company officials would not name the telecom companies.

Walter Nasdeo, managing director of the New York City investment firm Ardour Capital Investments LLC, said he saw reason for optimism. Selling 300 of the GenCore systems "is certainly a doable number if the stars line up," he said. "But that's not the story. If they sell 250 or even 225, they have significantly more (sold) in a year."

Nasdeo, an analyst who follows the company, said he sees in Plug "a company that's seeing the fruits of their labors, after pounding away." He said he believes the company is on the road to profitability.