1.4.2005: Meldung: Beacon Power Announces Fourth-Quarter, Fiscal Year 2004 Results
For the fourth quarter of 2004, the Company reported net income of $0.9 million, or $0.02 per share, compared with a net loss in the fourth quarter of 2003 of $2.5 million, or ($0.06) per share. During the fourth quarter of 2004, the Company had revenue of $0.06 million, cost of good sold of $0.09 million, and gross margin of ($0.03) million. Beacon invested $0.8 million in R&D, $0.9 million in SG&A and recorded depreciation of $0.1 million. The improvement in net income is primarily attributable to a gain on the sale of equity investments of $2.7 million, as the Company sold its investment in common stock and warrants of Evergreen Solar, Inc., lower selling, general and administrative expenses and lower development expenditures.
For the fiscal year ended December 31, 2004, Beacon Power reported a net loss of $5.3 million, or ($0.12) per share, compared with a net loss in 2003 of $8.6 million, or ($0.20) per share. The lower loss in 2004 is primarily attributable to the gain on sale of equity investments in Evergreen Solar, Inc. of $3.6 million. At December 31, 2004, the Company had $5.1 million in cash and cash equivalents. The Company"s working capital was $4.2 million.
The Company has identified an application for its Smart Energy Matrix in a well-established market with attractive pricing characteristics. This market is the sale of frequency regulation services for the electrical power grid. Towards this effort, the Company has previously announced that it has been awarded two research and development contracts with the California State Energy Resources Conservation and Development Commission (CEC) and the New York State Energy Research and Development Authority (NYSERDA) for programs demonstrating the feasibility of the Company"s flywheel based system for frequency regulation of electricity on the power grid.
The Company"s cash and cash equivalents at December 31, 2004, will support its business plan through May of 2005. The Company continues to incur losses, and will require an equity investment to continue as a going concern. Because there is no certainty of Beacon successfully completing the required financing, the Company"s independent registered public accounting firm has inserted an explanatory paragraph related to a going concern uncertainty into their Audit Report on the Company"s Annual Report on Form 10-K for the fiscal year ended December 31, 2004. The Company is pursuing various equity investments to alleviate these concerns.
"We believe that the demonstration contracts with CEC and NYSERDA will demonstrate the potential benefits of the Smart Energy(TM) Matrix flywheel systems for frequency regulation of the power grid," said Bill Capp, president and CEO of Beacon Power. "We have engaged an investment banker named Ardour Capital Investments, LLC to advise Beacon Power in raising new equity investment and based on the growing market interest in our products, I am optimistic that we will raise additional capital on a timely basis."
About Beacon Power Corporation
Beacon Power Corporation designs sustainable energy storage and power conversion solutions that would provide reliable electric power for the utility, renewable energy, and distributed generation markets. Beacon"s Smart Energy Matrix is a design concept for a megawatt-level, utility-grade flywheel-based energy storage solution that would provide sustainable power quality services for frequency regulation, and support the demand for reliable, distributed electrical power. Beacon is a publicly traded company with its research, development and manufacturing facility in the U.S.
For more information, please contact James Spiezio, Chief Financial Officer at Beacon Power Corporation, tel. 978.694.9121; fax 978.694.9127; email firstname.lastname@example.org, or send mail to 234 Ballardvale Street, Wilmington, MA 01887. Visit Beacon Power on the Internet at www.beaconpower.com