Welcome!

News Feed Item

Active Power Reports First Quarter 2014 Results

AUSTIN, TX -- (Marketwired) -- 04/29/14 -- Active Power (NASDAQ: ACPW) reported results for the first quarter ended March 31, 2014.

Highlights

  • Service revenue increased 17% from the first quarter of 2013 to $3.5 million, but decreased 25% from the previous quarter.

  • Shipped a large UPS order to ABN AMRO, a Dutch state-owned bank, for deployment at one of the bank's facilities located south of Amsterdam.

  • Booked first order from Caterpillar for CleanSource® HD UPS for shipment to one of the largest medical centers in the Netherlands.

  • Appointed a new sales and marketing director in China who brings more than 18 years of sales and marketing experience in the critical power infrastructure and energy markets.

  • Appointed a chief knowledge officer who brings deep technical experience in data center design, planning, and consulting to strengthen Active Power's voice in the mission critical and energy storage markets.

  • Completed public offering of 3.7 million newly issued shares at a price of $3.15 per share, generating approximately $10.5 million in net proceeds to the company.

Unless otherwise stated, all comparisons are to the period ended March 31, 2013, as restated.

Q1 2014 Financial Results
Revenue in the first quarter of 2014 was $10.9 million compared to $14.4 million in the year-ago period and $13.9 million in the previous quarter. The decrease from the previous quarter and the first quarter of 2013 were due primarily to large MIS projects and their associated service revenue which were not repeated in the first quarter of 2014.

Gross margin in the first quarter of 2014 was 26.8% compared to 30.2% in the year-ago period and 30.0% in the previous quarter. The decrease in gross margin from the previous quarter and the first quarter of 2013 were primarily due to higher unabsorbed production costs in 2014.

Operating expenses in the first quarter of 2014 were $6.6 million compared to $5.7 million in the year-ago period and $8.0 million in the previous quarter. The sequential decrease was largely due to the reduction of expenses, including severance, management transition costs, stock-based compensation, relocation, and legal fees recorded in the previous quarter. The increase from the first quarter of 2013 was driven primarily by higher product development expenses and higher severance costs and professional fees.

Net loss in the first quarter of 2014 was $3.9 million or $(0.19) per share compared to a net loss of $1.4 million or $(0.07) in the year-ago period and $4.1 million or $(0.21) per share in the previous quarter. The decrease in net loss from the previous quarter was primarily due to a decrease in operating expenses. The increase in net loss from the first quarter of 2013 was due to the impact of lower revenue in the 2014 quarter compared to the comparable quarter.

Adjusted EBITDA in the first quarter of 2014 was a negative $3.1 million compared to a negative $1.0 million in the year-ago period and a negative $3.0 million in the previous quarter. The adjusted EBITDA decrease from the first quarter of 2013 is primarily due to a higher net loss in the 2014 quarter.

Cash and cash equivalents totaled $18.7 million at March 31, 2014, which includes approximately $10.5 million in net proceeds from the public offering of shares in February 2014. This compares to cash and cash equivalents of $12.3 million at Dec. 31, 2013, and $15.0 million at March 31, 2013.

Management Commentary
"We completed our first full quarter with the new executive team and sales organization in place and are executing against our new strategy which we began rolling out in December," said Mark A. Ascolese, president and CEO, at Active Power. "We continue to take deliberate action in the quarter as we strengthened our field sales team and distribution channels through the addition of highly experienced sales personnel and new sales partners."

"Moving ahead, we remain focused on our three priorities which include generating consistent sales performance; maximizing the products and solutions we have in place now to grow the business; and positioning Active Power as a mission critical and energy storage company. These initiatives are aimed at increasing bookings and consistency of order flow."

Conference Call and Webcast
Active Power will host a conference call today, Tuesday, April 29, 2014, at 8:30 a.m. (ET) to discuss its first quarter 2014 results. Interested parties can dial into the conference call at the time of the event at (888) 337-8169. For callers outside the U.S. and Canada, please dial (719) 785-1753.

To listen to the live webcast, click here. A replay of the webcast will be available via Active Power's investor relations website at http://ir.activepower.com.

About Active Power
Founded in 1992, Active Power (NASDAQ: ACPW) designs and manufactures uninterruptible power supply (UPS) systems and modular infrastructure solutions, and provides related services, that enable data centers and other mission critical operations to remain 'on' 24 hours a day, seven days a week. The company's products and solutions are built with pride in Austin, Texas, at a state-of-the-art, ISO 9001:2008 registered manufacturing and test facility. Global customers are served via Austin and three regional operations centers located in the United Kingdom, Germany, and China, that support the deployment of systems in more than 50 countries. For more information, visit www.activepower.com.

Non-GAAP Financial Measure
This press release includes information about our adjusted EBITDA, which is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles. In the following tables, Active Power has provided a reconciliation of historical adjusted EBITDA to GAAP net loss, the most directly comparable GAAP financial measure, under the heading "Adjusted EBITDA." Active Power encourages investors to review this reconciliation in conjunction with our presentation of adjusted EBITDA. See "About Presentation of Adjusted EBITDA" in the following tables for our definition of adjusted EBITDA and for an important discussion about the use of this metric.

Cautionary Note Regarding Forward-Looking Statements
Statements in this press release that relate to future results and events (including statements about the anticipated success of our new strategy; our expectations that bookings made during the quarter will ship later in the year; our future financial and operating performance; and statements relating to generating consistent sales performance, prospects for growing the business and improving profitability, and increasing bookings and consistency of order flow) are forward-looking statements based on Active Power's current expectations. Actual results and the outcomes of future events could differ materially from those expressed or implied by these forward-looking statements because of a number of risks and uncertainties including: our history of significant operating losses; our increased emphasis on larger and more complex system solutions and customer concentration; the deferral or cancellation of sales commitments as a result of general economic conditions or uncertainty; financial results that may vary significantly from quarter to quarter; an increase in sales of our MIS products may materially increase the amount of working capital required to fund our operations; risks related to our international operations; our dependence on our relationships with Hewlett Packard, Caterpillar, other original equipment manufacturers (OEM), other strategic IT partners, and on our distributors; product performance and quality issues; our underutilized manufacturing capacity and lack of experience manufacturing our products in large quantities; the level of acceptance of our current and future products in the market; significant competition and decreased product sales prices; intellectual property claims; pending legal matters that have increased our costs and could result in fines and penalties; our transition to new management; and our continued ability to borrow under our credit agreement or raise capital as needed to support the business.

For more information on the risk factors that could cause actual results to differ from these forward looking statements, please refer to Active Power filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2013, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K filed since then. Active Power assumes no obligation to update any forward-looking statements or information.


                             Active Power, Inc.
               Condensed Consolidated Statement of Operations
                  (in thousands, except per share amounts)

                                                       Three Months Ended
                                                            March 31,
                                                           (unaudited)
                                                     ----------------------
                                                        2014        2013
                                                     ----------  ----------
                                                                 (restated)

Revenues:
  Product revenue                                    $    7,457  $   11,450
  Service and other revenue                               3,481       2,974
                                                     ----------  ----------
    Total revenue                                        10,938      14,424

Cost of goods sold:
  Cost of product revenue                                 5,905       7,966
  Cost of service and other revenue                       2,105       2,104
                                                     ----------  ----------
    Total cost of goods sold                              8,010      10,070
                                                     ----------  ----------
Gross profit                                              2,928       4,354

Operating expenses:
  Research and development                                2,080       1,631
  Selling and marketing                                   2,888       2,937
  General and administrative                              1,606       1,134
                                                     ----------  ----------
    Total operating expenses                              6,574       5,702
                                                     ----------  ----------
Loss from Operations                                     (3,646)     (1,348)

Interest expense, net                                      (101)        (82)
Other income (expense), net                                (127)          9
                                                     ----------  ----------

Net Loss                                             $   (3,874) $   (1,421)
                                                     ==========  ==========

Net Loss per share, basic and diluted                $    (0.19) $    (0.07)

Shares used in computing net loss per share, basic
 and diluted                                             20,574      19,225



                             Active Power, Inc.
                   Condensed Consolidated Balance Sheets
                      (in thousands, except par value)


                                                 March 31,     December 31,
                                                    2014           2013
                                                (unaudited)
                                               -------------  -------------


ASSETS

Current assets:
  Cash and cash equivalents                    $      18,656  $      12,261
  Restricted cash                                        520            520
  Accounts receivable, net of allowance for
   doubtful accounts of $261 and $313 at March
   31, 2014 and December 31, 2013,
   respectively                                        9,398          9,075
  Inventories, net                                    12,921         12,020
  Prepaid expenses and other                             575            680
                                               -------------  -------------
    Total current assets                              42,070         34,556
Property and equipment, net                            2,798          3,056
Deposits and other                                       296            295
                                               -------------  -------------
    Total assets                               $      45,164  $      37,907
                                               =============  =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                             $       4,427  $       2,993
  Accrued expenses                                     4,530          5,583
  Deferred revenue                                     2,577          2,749
  Revolving line of credit                             5,535          5,535
                                               -------------  -------------
    Total current liabilities                         17,069         16,860
Long-term liabilities                                    746            741
Stockholders' equity
  Preferred stock - $0.001 par value; 2,000
   shares authorized                                       -              -
  Common stock - $0.001 par value; 30,000
   shares authorized; 23,145 and 19,452 issued
   and 23,079 and 19,388 outstanding at March
   31, 2014 and December 31, 2013,
   respectively                                           23             19
  Treasury stock                                        (222)          (215)
  Additional paid-in capital                         301,886        290,964
  Accumulated deficit                               (275,042)      (271,168)
  Other accumulated comprehensive income                 704            706
                                               -------------  -------------
    Total stockholders' equity                        27,349         20,306
                                               -------------  -------------
    Total liabilities and stockholders' equity $      45,164  $      37,907
                                               =============  =============



                            Active Power, Inc.
                  Supplemental Information (in thousands)

Revenue by
 Product                             Three Months Ended
                  --------------------------------------------------------
                   March 31,  % of   March 31,   % of   December 31,  % of
                     2014    total     2013     total       2013     total
                  ---------- -----  ----------  -----  ------------- -----
                                    (restated)
UPS               $    6,636    61% $    7,420     51% $       5,889    42%
MIS                      821     7%      4,030     28%         3,411    25%
                  ---------- -----  ----------  -----  ------------- -----
  Total Product
   Revenue             7,457    68%     11,450     79%         9,300    67%
Service                3,481    32%      2,974     21%         4,626    33%
                  ---------- -----  ----------  -----  ------------- -----
  Total Revenue   $   10,938   100% $   14,424    100% $      13,926   100%
                  ========== =====  ==========  =====  ============= =====

Revenue by
 Geography

Americas          $    7,905    72% $   12,092     84% $      11,278    81%
EMEA                   2,148    20%      2,558     18%         1,448    10%
Asia                     885     8%       (226)    -2%         1,200     9%
                  ---------- -----  ----------  -----  ------------- -----
  Total Revenue   $   10,938   100% $   14,424    100% $      13,926   100%
                  ========== =====  ==========  =====  ============= =====



                              Adjusted EBITDA
                               (in thousands)

                                             Three Months Ended
                                -------------------------------------------
                                  March 31,      March 31,     December 31,
                                     2014           2013           2013
                                -------------  -------------  -------------
                                                 (restated)

Net Loss                        $      (3,874) $      (1,421) $      (4,127)
  Interest Expense                        101             82             88
  Depreciation Expense                    314            262            280
  Stock Based Compensation                333            137            784
  Impairment of Long-Lived
   Assets                                   -            (17)            (3)
                                -------------  -------------  -------------
Adjusted EBITDA                 $      (3,126) $        (957) $      (2,978)
                                =============  =============  =============


About Presentation of Adjusted EBITDA
Adjusted EBITDA is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP), and should not be considered as an alternative to net income, operating income, or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The company defines adjusted EBITDA as net loss before impairment of long-lived assets, depreciation, interest, and non-cash stock based compensation. Other companies (including competitors) may define adjusted EBITDA differently. The exclusion of these items should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. These excluded items could have a material impact on earnings. While management relies primarily on GAAP results, the company presents adjusted EBITDA because management believes it to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Management also uses this information internally as a supplemental measure for forecasting and budgeting. Adjusted EBITDA may not be indicative of the historical operating results of Active Power, Inc., nor is it intended to be predictive of potential future results. Investors should not consider adjusted EBITDA in isolation or as a substitute for analysis of the company's results as reported under GAAP.

SOURCE: Active Power, Inc.

Add to Digg Bookmark with del.icio.us Add to Newsvine

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.