Active Power Reports Net Loss Of $2.4 Million For Q1 2009

Published: 24-Apr-2009

Active Power, Inc. (Active Power), a US-based manufacturer of power solutions incorporating uninterruptible power supply (UPS) systems, has reported total revenues of $11.1 million for the first quarter of 2009, up 48%, compared with the total revenues of $7.5 million in the year-ago quarter. It also reported a net loss of $2.4 million, or $0.04 loss per share, for the first quarter of 2009, compared with the net loss of $4.5 million, or $0.07 loss per share, in the year-ago quarter.

The gross profit margin in the first quarter of 2009 was 29%. This compares to a gross profit margin of 10% in the first quarter of 2008 and a 32% margin achieved in the fourth quarter of 2008 on higher product volumes.

Cash and investments declined $0.7 million during the quarter compared to a decrease of $5.1 million in the first quarter of 2008 and a decrease of $0.6 million in the fourth quarter of 2008. Cash and investments at March 31, 2008, were $10.5 million.

In a challenging global market, we are pleased to achieve significant year-over-year growth in revenues and overall improvements in our financial results, stated Jim Clishem, president and chief executive officer, Active Power. Our sales pipeline of new global opportunities continues to grow, although we are witnessing a longer sales cycle as the impact of economic uncertainty and credit availability is being felt by some customers. We believe that strong interest continues in our products. Our space and energy efficient UPS systems reduce electricity costs, while also delivering a greener solution with improved reliability. These inherent product benefits should enable us to continue increasing market share throughout 2009. We remain focused on increasing sales and margins; preserving cash; building brand; bundling compelling power solutions; and improving our own internal efficiencies towards operating profitability.

Business Highlights for the First Quarter 2009:

Increased product revenues by 55% compared to the first quarter of 2008;

Received and shipped orders to 13 countries and the 119 flywheels shipped was the second highest volume ever shipped;

Reduced quarterly net loss by 47% to $2.4 million from the $4.5 million loss in the first quarter of 2008;

Announced an order from a blue chip manufacturer for nearly two megawatts of CleanSource UPS systems;

Annual service revenues up 11% compared to the first quarter of 2008, which continue to reflect valuable annuity revenues and benefit of having a direct sales model in place;

Announced membership into HP Data Center Solution Builders Program, where Active Power's PowerHouse solution will provide containerized power and cooling architecture for HP's Performance Optimized Data Center (POD);

Incurred an EBITDA loss of $1.9 million or 3 cents per share for the quarter. Adjusted EBITDA was a loss of $1.6 million, or 3 cents per share for the quarter, a reduction of 59% from a loss of $3.8 million in the first quarter of 2008.

Outlook:

Active Power anticipates second quarter 2009 revenues to be between $8 and $12 million. The company also anticipates its cash and investments balance as of the end of the second quarter to decrease by up to $1 million.

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