FuelCell Energy Inc. (NASDAQ: FCEL) has hit a bump in the road on its fiscal third-quarter earnings report. While this remains a speculative company and remains one of our recent speculative small-cap alternative energy stocks with massive upside, it is not that difficult to see why investors are hitting the sell button Tuesday morning.

The fuel cell player said that its total third-quarter revenue was $43.2 million, down from $53.7 million a year earlier. The net loss was $7.8 million, or $0.03 per basic and diluted share. Thomson Reuters did not exactly have a massive number of analysts following the stock, but estimates were -$0.03 earnings per share and $43.18 million in revenue.

Product sales were $32.3 million ($31.0 million of power plant revenue and fuel cell kits) and $1.3 million of power plant component sales and site engineering and construction services. This is down from $45.4 million from a year ago. Service and license revenue was $7.1 million, which was up from $3.7 million a year earlier. Advanced technologies contract revenue was $3.8 million, versus $4.6 million a year earlier.

FuelCell’s gross profit was $4.0 million, down from $4.5 million a year ago. Gross margin was 9.2%, versus 8.4% a year ago, but the current period gross margin of 9.2% is a record gross margin.

A key measure of future business growth is the total backlog, and this rose to $350.2 million from $342.8 million the prior sequential quarter. Product sales backlog was $137.3 million and 82.1 megawatts at July 31, 2014, and product backlog decreased $9.4 million sequentially. Service backlog was $201.8 million at July 31, 2014, an increase of $20.0 million sequentially.

FuelCell’s cash and cash equivalents totaled $133.1 million at July 31, 2014, and the company said that on July 30 it issued 14.6 million shares of common stock to NRG Energy for proceeds of $35 million.

READ ALSO: 7 Alternative Energy Stocks With Massive Upside Potential

For investors to chase alternative energy stocks higher, they really want to be “wowed” in the news. There were some good points here in the news, but there just were not many “wow” points.

FuelCell shares were up almost 3% on Monday, but the reaction on Tuesday morning had FuelCell shares down 10% at $2.40 in early trading indications. Its 52-week range is $1.18 to $4.74, and the market cap is close to $625 million, if you adjust for the early drop.

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