On the Toronto Stock Exchange, the company fell 26 cents to $2 on Monday morning.

The Toronto-area fuel-cell company said more component quality problems at its OnSite Generation business unit in Belgium will affect second-quarter reports based on warranty costs.

The announcement was made after markets closed Friday.

Hydrogenics said most of the warranty costs are on units delivered before its acquisition of Stuart Energy Systems, another Ontario-based company, in January 2005.

The latest problems come after Hydrogenics announced March 28 that it had uncovered component quality issues that would delay production at the same unit and reduce near-term revenue expectations.

The company said it expects total revenue in the second quarter from its three business units will be $5.4 million US, including $1.6 million from OnSite Generation, $1 million from Power Systems and $2.8 million from Test Systems.

That's well below the $7 million to $9 million US anticipated by three analysts polled by Thomson Financial.