31.3.2006: Meldung: Beacon Power Corporation: Fourth-Quarter, Fiscal Year 2005 Results
News Release - 30-Mar-2006
Beacon Power Announces Fourth-Quarter, Fiscal Year 2005 Results
WILMINGTON, Mass.-- March 30, 2006--Beacon Power Corporation, a development stage company that designs and develops advanced products and services to support more stable and reliable electricity grid operation, announced its financial results for the fourth quarter and fiscal year ended December 31, 2005.
For the fiscal year ended December 31, 2005, Beacon Power reported a net loss of $9.3 million, or ($0.20) per share, compared with a net loss in 2004 of $5.3 million, or ($0.12) per share. The higher loss in 2005 is attributable to the non-recurring gain on the sale of equity investments in Evergreen Solar, Inc., of $3.6 million in 2004, as well as higher spending in 2005 on several research and development contracts and nonrecurring expenses of $1.3 million relating to a proposed acquisition that was terminated.
For the fourth quarter of 2005, the Company reported a net loss of $3.2 million, or ($0.07) per share, compared to net income of $0.9 million, or $0.02 per share, for the fourth quarter of 2004. This result is also primarily attributable to the nonrecurring gain on the sale of equity investments in Evergreen Solar, Inc., which were reported in the fourth quarter of 2004.
At December 31, 2005, the Company had $13.9 million in cash and cash equivalents, compared to $5.1 million at December 31, 2004. The Company"s working capital was $13.2 million. In 2005, the Company raised approximately $17 million through new investment. These funds will be used to develop and test its next-generation flywheel system, as well as begin development on the full-scale Smart Energy Matrix that is expected to provide frequency regulation services on the electricity grid.
The Company"s cash and cash equivalents at December 31, 2005, will support its business plan into the first quarter of 2007. The Company continues to incur losses, and will require further equity investments 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, 2005. The Company is pursuing various equity investments to alleviate these concerns.
The Company"s key milestones achieved during 2005 included the following:
* Obtained research and development contracts with two major state agencies to demonstrate the Company"s flywheel-based energy storage systems for frequency regulation of the electricity grid
* Obtained a contract from the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense for the preliminary design of a space-based flywheel energy storage system for satellite applications
* Maintained ongoing efforts to seek additional contracts to develop other products and applications based on the Company"s patented flywheel technology
* Delivered the first scale-power Smart Energy Matrix for demonstration in California
* Raised $17 million to fund operations and complete development of the next-generation flywheel
"2005 was a great year for Beacon Power in terms of the progress we made toward commercialization of our flywheel systems for frequency regulation," said Bill Capp, Beacon Power president and chief executive officer. "We signed several significant development contracts, designed and delivered our first demonstration system, and made substantial progress on the second system. Our plan to design, build, own and operate multiple 20-megawatt flywheel frequency regulation plants and generate long-term revenues from the services is based in part on what we"ll learn from these demonstrations. Indeed, they provide invaluable opportunities to accelerate our progress toward larger-scale commercialization of high-energy flywheels for frequency regulation."
"In 2006, we expect to design and build our first 25kWh flywheel, which will be the core component of our Smart Energy Matrix," Capp continued. "We are hiring experienced engineers and other staff to help us complete this effort on schedule. We will also continue to pursue additional contracts, strengthen our relationships with grid operators, utilities and other potential partners, and identify new markets for our patented energy storage technologies."
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 email@example.com, or send mail to 234 Ballardvale Street, Wilmington, MA 01887. Visit Beacon Power at www.beaconpower.com.
CONTACT: Beacon Power Corporation
James Spiezio, 978-694-9121
Gene Hunt, 978-694-9121
SOURCE: Beacon Power Corporation