Avista Labs has laid off nine employees in the past month as the fuel cell company searches for an investor.
Of 45 employees, 34 remain at the Spokane Valley company. Nine people were laid off, and two others left to pursue other opportunities, company spokeswoman Sandra Saathoff said.
"People have always known that when you work for a startup, you're taking a risk," Saathoff said, explaining that the company is honing its focus to manufacturing and sales.
Avista Labs is a subsidiary of Avista Corp., which has said it wants to sell 80 percent of the fuel cell company by the end of next month. When a corporation owns less than 20 percent of another entity, any losses suffered are not charged against the parent company's earnings.
Avista Labs is searching for venture capitalists to purchase 80 percent of the company. Saathoff said the company currently is talking with two potential investors. "We're waiting to see what happens with that," she said.
Though Avista Labs projects selling $1.6 million worth of fuel cells this year, the company does not expect to turn a profit until 2005. Last year, the company laid off 44 percent of its work force, including six executives, reducing the number of employees from 80 to 45.
"There are no current plans for more layoffs in the near future," Saathoff said.
Fuel cells convert hydrogen into electricity through an electrochemical reaction. The only by-products are heat and water.
Avista Labs' fuel cells are touted for their reliability because they can be serviced with no interruption in the flow of power. The fuel cells are being sold into backup power markets for use in the telecommunications, railroad and renewable-energy industries.
The company's goal is to replace industrial batteries as a backup power supply anywhere 50 watts to 5 kilowatts of power are needed.
•Business writer Alison Boggs can be reached at (509) 927-2150 or at alisonb@spokesman.com
