27.10.2005: Meldung: Active Power Q3 2005 Financial Results
Net loss for the third quarter of 2005 was $5.2 million, or 11 cents per share, compared to a net loss of $10.9 million, or 26 cents per share, for the same period last year and a net loss of $5.6 million, or 12 cents per share in the second quarter of 2005. The 2004 results included a $4.8 million litigation settlement.
Cash and investments usage for the quarter was $6.8 million, as compared to $5.9 million for the same period last year. This expected increase in cash and investments usage during the quarter is attributed to the settlement of a sales tax audit and the renewal of the Company"s director and officer liability insurance. Cash and investments at September 30, 2005 were $48.4 million.
"We achieved positive gross margin in the third quarter due in large part to the continued growth of our direct channel business," said Joe Pinkerton, Chairman and CEO of Active Power. "Orders for our megawatt-class UPS increased sharply last quarter and we expect this segment of our business to expand over the next several quarters. We achieved our 60% cost reduction target for CoolAir(TM) DC and remain on schedule to commercially launch this product at an industry event next month. To that end, we recently engaged 12 manufacturer"s representative firms that will focus on selling our CoolAir units in North America."
* Announced in August the receipt of a 5.4 MVA megawatt-class UPS order
from Caterpillar that will be used to protect the state-of-the-art
high speed printing operation of a large communications company in the
Southeast United States. This order is the largest single megawatt-
class UPS order received to date. We now believe this order will be
shipped in the first half of next year.
* Achieved positive gross margin for the quarter due primarily to an
increase of sales through our Active Power branded channel.
* Completed the engagement of 12 manufacturer"s representative firms
that will sell our CoolAir product throughout North America. We have
trained seven of these groups and anticipate having over 20
representative firms enlisted and trained by the end of this year.
* Engaged Numeric Power Systems, Ltd. to distribute our CleanSource?
DC flywheel products in India, where the demand for robust backup
power is rapidly expanding. Numeric Power Systems is the leading UPS
manufacturer in India.
* Achieved launch target by reducing the cost per unit energy of CoolAir
DC by 60% since Q3 2004. Over the past two years the cost per unit
energy of CoolAir DC has decreased by a factor of 14.
* Shipped 2 MVA of megawatt-class CleanSource? UPS to a food
processing facility in Northern Africa. This order was announced in
June of this year.
* Shipped systems to eight different governmental agencies around the
world. We also shipped multiple units to healthcare, broadcast and
datacenter customers, which continue to be strong markets for our
* Shipped 3 MW of CleanSource DC products to customers in Q3. Sales of
our DC flywheel solution during 2005 have remained strong.
* Shipped a mobile and containerized continuous power system, which
integrates an Active Power CleanSource flywheel UPS, diesel engine
generator and transfer switch, for use at the Chinese National
* Continued our strong international presence with shipments to seven
countries. International sales constituted 62% of revenue in Q3.
Active Power expects Q4 2005 revenue to be approximately $4.5 to $5.5 million, and Q4 earnings per share to be a loss of approximately 10 to 12 cents. We expect cash and investments usage in Q4 to be in the range of $4.0 to $5.0 million.
The Company will host a conference call today, Wednesday, October 26, at 11:00 a.m. Eastern Time, to further review the Company"s fiscal Q3 results. A replay of the webcast will be available until November 10th. Investors may access the live broadcast and replay through our web site: http://www.activepower.com .
About Active Power:
Active Power, Inc. (http://www.activepower.com ) designs, manufactures and markets battery-free power quality products that provide the consistent, reliable electric power required by today"s digital economy. An ISO 9001- certified company, Active Power is the first to commercialize a flywheel energy storage system, CleanSource?, that provides a highly reliable, low- cost and non-toxic replacement for lead-acid batteries used in conventional power quality installations. Active Power has also recently developed a new battery-free extended runtime product line (CoolAir(TM)) based on its proprietary thermal and compressed air storage technology.
Cautionary Note Regarding Forward-Looking Statements:
This release may contain forward-looking statements that involve risks and uncertainties. Among the important factors that could cause actual results to materially differ from those in the forward-looking statements are: the potential for significant losses to continue; inability to accurately predict revenue and budget for expenses for future periods; fluctuations in revenue and operating results; overall market performance; decreases and/or delays in capital spending; limited product offerings; inability to expand and integrate new distribution channels; inability to manage new and existing product distribution relationships; our dependence on our relationship with Caterpillar?; competition; delays in research and development; dependence on sole or limited source suppliers; inability to increase product sales; inventory risks; dependence upon key personnel; inability to protect our intellectual property rights; potential future acquisitions; potential Sarbanes-Oxley Section 404 compliance issues; the volatility of our stock price regardless of our actual financial performance; and other factors detailed in our filings with the Securities and Exchange Commission. Additional risks and uncertainties that we are unaware of or that we currently deem immaterial also may become important factors that affect us. Active Power expressly disclaims any obligation to release publicly any updates or revisions to the information contained in this press release or to update or revise any forward-looking statements to reflect any changes in expectations, or any change in events or circumstances on which those statements are based, unless otherwise required by law.
Active Power and our Active Power logo and CleanSource are registered trademarks of Active Power, Inc. All other trademarks are the properties of their respective companies.
Active Power Contacts:
Michael Chibib, Investors, 512.744.9453,
Derek Jones, Corporate Communications, 512.744.9210,
ACTIVE POWER, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Thousands, except per share amounts)
Months Ended Months Ended
September 30, September 30,
2005 2004 2005 2004
Product revenue $3,980 $3,684 $11,068 $9,682
Service and spares revenue 536 390 1,560 1,347
Total revenue 4,516 4,074 12,628 11,029
Cost of product revenue 3,984 4,066 11,348 11,978
Cost of service
and spares revenue 501 407 1,542 1,427
Research and development 2,793 2,693 7,831 7,317
Selling, general & administrative 2,912 3,109 10,061 8,580
Litigation settlement expense --- 4,800 --- 5,080
Amortization of deferred stock
compensation --- --- --- 34
Total operating expenses 10,190 15,075 30,782 34,416
Operating loss (5,674) (11,001) (18,154) (23,387)
Interest income 416 163 1,212 832
Other income (expense) (80) (92) (141) (93)
Gain due to change in market value of
investment rights 150 --- 964 ---
Net loss $(5,188) $(10,930) $(16,119) $(22,648)
Net loss per share, basic & diluted $(0.11) $(0.26) $(0.34) $(0.53)
Shares used in computing net
loss per share, basic & diluted 48,693 42,559 47,810 42,389
Net loss $(5,188) $(10,930) $(16,119) $(22,648)
Unrealized gain (loss)
on investments in marketable
securities (48) 210 (91) (193)
Realized loss on marketable
securities 84 78 91 78
Comprehensive loss $(5,152) $(10,642) $(16,119) $(22,763)
ACTIVE POWER, INC.
CONDENSED BALANCE SHEETS
Sept. 30, Dec. 31,
Cash and cash equivalents $11,955 $17,625
Restricted cash 116 741
Short-term investments in marketable securities 32,351 21,308
Accounts receivable, net 4,727 4,143
Inventories 5,028 3,966
Prepaid expenses and other 718 1,028
Total current assets 54,895 48,811
Property and equipment, net 7,485 7,829
Intangible assets, net 641 725
Long-term investments in marketable securities 3,974 6,001
Deposits and other 187 ---
Total assets $67,182 $63,366
Liabilities and stockholders" equity
Accounts payable $2,302 $1,649
Accrued expenses 3,876 3,410
Deferred revenue 317 214
Total current liabilities 6,495 5,273
Common stock 49 43
Treasury stock (5) (2)
Additional paid-in capital 234,647 215,937
Accumulated deficit (173,917) (157,798)
Other accumulated comprehensive income (87) (87)
Total stockholders" equity 60,687 58,093
Total liabilities and stockholders" equity $67,182 $63,366
Source: Active Power, Inc.