Welcome!

News Feed Item

Northern Power Systems Announces Q1 2014 Financial Results

Strong Revenue and Order Growth; Reinvesting in Business Expansion

BARRE, VT--(Marketwired - May 29, 2014) -

First Quarter 2014 Highlights:

  • Expanded quarterly revenues to $13.8 million from $1.7 million in the prior year period; revenue expansion driven by strong order fulfillment supporting demand for the Company's distributed class turbines as well as utility class power converters.
  • Concluded capital raise of $22.3 million in April, supporting strategic plans for global expansion in sales of Northern Power Systems' offerings.
  • Grew backlog to approximately $48 million, an increase of more than 125 percent over the prior year period.
  • Executed follow-on 3.3MW utility class platform development contract with strategic partner WEG Energy, enabling the future development of an expanded licensing platform and direct sales of utility class turbines.

Northern Power Systems Corp. (TSX: NPS), a next generation renewable energy technology company, today announced financial results for the three month period ended March 31, 2014, for its predecessor company Wind Power Holdings, Inc. Northern Power raised $22.3 million and listed its common shares on the Toronto Stock Exchange (TSX) in April 2014 through a transaction with a Canadian capital pool company. These funds effectively enable the company to drive its ongoing growth strategy with investments across its three business lines: Product Sales and Services, Technology Licensing, and Technology Development.

"Our first quarter financial results demonstrated exceptionally strong year-over-year revenue growth and order expansion, particularly in our core distributed class wind turbine business. Our results can be impacted by various seasonal trends and in the first quarter we experienced a stronger than typical expansion," said Troy Patton, president and chief executive officer. "After a record year in 2013 of orders for our distributed class wind turbines, as well as closing key technology licensing contracts, we were pleased to deliver continued strong order momentum supporting our strongest backlog in Company history."

Patton continued, "Completion of our capital raise in April of 2014 will drive continued growth by effectively supporting Northern Power Systems' expanded sales efforts and delivery of improved technology platforms for our customers. Our development of emerging opportunities globally continues to validate the strength and value proposition of our technology."

Consolidated Financial Metrics:

  • Revenue for the first quarter of fiscal year 2014 grew to $13.8 million, a 712 percent increase over revenue of $1.7 million reported in the prior year period.
  • Order backlog at March 31, 2014 was $48.4 million, a 128 percent increase over backlog of $21.2 million at March 31, 2013.
  • Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the first quarter was 8.6 percent, up from a gross margin loss of 9.8 percent in the prior year period.
  • GAAP net loss for the first quarter was $3.1 million, representing an 8.8 percent decrease compared to a $3.4 million loss in the prior year period.
  • Non-GAAP adjusted EBITDA loss for the first quarter was $2.5 million, representing a 13.7 percent decrease compared to a non-GAAP adjusted EBITDA loss of $2.9 million, in the prior year period.
  • Cash used in operations in the first quarter was $2.3 million, representing a 32 percent decrease compared to a $3.4 million usage of cash for operations in the prior year period.
  • Upon closing of the capital raise in April 2014, all of the Company's outstanding convertible notes converted to common shares. After the consummation of the transaction the Company had approximately $0.5 million in outstanding debt and in excess of $20 million of cash and cash equivalents.

About non-GAAP financial measures

To supplement Northern Power Systems' consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), Northern Power Systems has used a non-GAAP financial measure, specifically non-GAAP adjusted EBITDA. Adjusted non-GAAP EBITDA is defined as net income/(loss), excluding share-based compensation expense, amortization of acquisition-related intangibles, depreciation of property, plant and equipment, interest expense, tax charges, and certain other non-cash charges as applicable.

The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on non-GAAP adjusted EBITDA, please see the table captioned "Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA Net Loss" included at the end of this release. The table has more details on the GAAP financial measure that is most directly comparable to non-GAAP adjusted EBITDA and the related reconciliation between these financial measures.

Northern Power Systems' management believes that this non-GAAP financial measure provides meaningful supplemental information in assessing our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results, which could be non-cash charges or discrete cash charges that are infrequent in nature. This non-GAAP financial measure also has facilitated management's internal comparisons to Northern Power Systems' historical performance and our competitors' operating results, as well as reflects measurements which are used by creditors and other third parties in assessing our performance.

The "Condensed Consolidated Statements of Operations" can be viewed on our website: http://www.northernpower.com/nps-q1-2014-financial-results/

About Northern Power Systems

Northern Power Systems designs, manufactures, and sells wind turbines, and provides engineering development services and technology licenses for energy applications, into the global marketplace from its US headquarters and European offices.

  • Northern Power Systems has almost 40 years' experience in technologies and products generating renewable energy.
    
  • Northern Power Systems currently manufactures the NPS™ 60 and NPS™ 100 turbines. With over 5 million run time hours across its global fleet, Northern Power wind turbines provide customers with clean, cost effective, reliable renewable energy.
    
  • Patented next generation permanent magnet/direct drive (PM/DD) technology uses fewer moving parts, delivers higher energy capture, and provides increased reliability due to reduced maintenance and downtime.
    
  • Northern Power Systems offers comprehensive in-house development services, including systems level engineering, advanced drivetrains, power electronics, PM machine design, and remote monitoring systems to the energy industry.
    
  • Some of the world's largest manufacturers license the company's next generation technology and IP for their utility and distributed wind products and markets.

To learn more about Northern Power Systems, please visit www.northernpower.com.

Notice regarding forward-looking statements:

This release includes forward-looking statements regarding Northern Power Systems Corp. and its business, which may include, but is not limited to, anticipated use of proceeds from capital transactions, expansion into new markets, and execution of the company's growth strategy. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of Northern Power Systems Corp. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding the wind power industry, performance and acceptance of the company's products, economic factors, competition, the equity markets generally and many other factors beyond the control of Northern Power Systems Corp. Although Northern Power Systems Corp. has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Northern Power Systems Corp. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

The following files are available for download:

                                                                            
                                                                            
NORTHERN POWER SYSTEMS CORP.                                                
                                                                            
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS      
(unaudited)                                                                 
FOR THE PREDECESSOR COMPANY WIND POWER HOLDINGS, INC.                       
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013                          
 (All amounts in thousands, except share and per share amounts)             
                                                                            
                                                                            
                                               For the three months ended   
                                             March 31, 2014  March 31, 2013 
REVENUE:                                                                    
  Net revenue                                $       13,756  $        1,678 
COSTS OF REVENUE AND OPERATING EXPENSES:                                    
  Cost of revenues                                   12,566           1,844 
  Sales and marketing                                   780             573 
  Research and development                            1,139           1,005 
  General and administrative                          2,176           1,512 
                                             --------------  -------------- 
    Total costs of revenue and operating                                    
     expenses                                        16,661           4,934 
                                             --------------  -------------- 
  Loss from operations                               (2,905)         (3,256)
  Interest expense                                     (240)            (18)
  Other income /(expense)                                35             (84)
                                             --------------  -------------- 
  Loss before provision for income taxes             (3,110)         (3,358)
  Provision for income taxes                             14              26 
                                             --------------  -------------- 
NET LOSS                                     $       (3,124) $       (3,384)
                                             --------------  -------------- 
COMPREHENSIVE LOSS                           $       (3,124) $       (3,384)
                                             ==============  ============== 
                                                                            
Net loss applicable to common stockholders   $       (3,124) $       (4,907)
Net loss per common share                                                   
  Basic and diluted                          $        (0.24) $      (325.57)
Weighted average number of common shares                                    
 outstanding                                                                
  Basic and diluted                              12,840,187          15,072 
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
NORTHERN POWER SYSTEMS CORP.                                                
                                                                            
FOR THE PREDECESSOR COMPANY WIND POWER HOLDINGS, INC.                       
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)                           
AS OF MARCH 31, 2014 AND DECEMBER 31, 2013                                  
(All amounts in thousands)                                                  
                                                                            
                                                March 31,     December 31,  
                                                  2014            2013      
ASSETS                                                                      
                                                                            
CURRENT ASSETS:                                                             
  Cash                                       $        1,996  $        4,534 
  Accounts receivable                                 2,750           1,175 
  Unbilled revenue                                    2,896             786 
  Inventories - net                                  12,432          11,682 
  Other current assets                                2,842           2,808 
                                             --------------  -------------- 
    Total current assets                             22,916          20,985 
  Property, plant and equipment - net                 1,477           1,414 
  Asset held for sale                                 1,300           1,300 
  Intangible assets - net                               463             509 
  Goodwill                                              722             722 
  Other assets                                          744           2,615 
                                             --------------  -------------- 
    Total Assets                                     27,622          27,545 
                                             ==============  ============== 
                                                                            
LIABILITIES AND STOCKHOLDERS' DEFICIENCY                                    
                                                                            
CURRENT LIABILITIES:                                                        
  Current portion of long-term debt          $           93  $          141 
  Senior secured convertible notes                        -          12,107 
  Accounts payable                                    4,339           2,148 
  Accrued expenses                                    3,865           2,158 
  Accrued compensation                                2,590           2,207 
  Other current liabilities                          16,294          18,465 
                                             --------------  -------------- 
    Total current liabilities                        27,181          37,226 
                                             --------------  -------------- 
  Senior secured convertible notes                   12,290               - 
  Deferred revenue, less current portion              1,284           1,163 
  Other long-term liability                             647             558 
                                             --------------  -------------- 
    Total Liabilities                                41,402          38,947 
                                             --------------  -------------- 
STOCKHOLDERS' DEFICIENCY:                                                   
Common stock                                            128             128 
Additional paid-in capital                          140,550         139,804 
Accumulated deficit                                (154,458)       (151,334)
                                             --------------  -------------- 
    Total Stockholders' Deficiency                  (13,780)        (11,402)
                                             --------------  -------------- 
                                                                            
Total Liabilities and Stockholders'                                         
 Deficiency                                  $       27,622  $       27,545 
                                             ==============  ============== 
                                                                            
                                                                            
                                                                            
                                                                            
NORTHERN POWER SYSTEMS CORP.                                                
                                                                            
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)                 
FOR THE PREDECESSOR COMPANY WIND POWER HOLDINGS, INC.                       
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013                          
(All amounts in thousands)                                                  
                                                                            
                                               For the three months ended   
                                             March 31, 2014  March 31, 2013 
OPERATING ACTIVITIES:                                                       
  Net loss                                   $       (3,124) $       (3,384)
Adjustments to reconcile net loss to net                                    
 cash used in operating activities:                                         
  Change in fair value of warrants                        -              63 
  Provision for inventory obsolescence                   93              48 
  Provision for doubtful accounts                       (63)              1 
  Stock-based compensation expense                      148             122 
  Depreciation and amortization                         178             227 
  Noncash restructure charges                             -              50 
  Deferred income taxes                                   3               3 
Changes in operating assets and liabilities:                                
  Accounts receivable and unbilled revenue           (3,622)            (79)
  Other current and noncurrent assets                  (112)            293 
  Inventories                                          (843)         (1,443)
  Accounts payable                                    2,191             (57)
  Accrued expenses                                    2,090             134 
  Other liabilities                                     777             587 
                                             --------------  -------------- 
                                                                            
Net cash used in operating activities                (2,284)         (3,435)
                                             --------------  -------------- 
                                                                            
INVESTING ACTIVITIES:                                                       
  Purchases of property and equipment                  (195)            (53)
                                             --------------  -------------- 
    Net cash used in investing activities              (195)            (53)
                                             --------------  -------------- 
                                                                            
FINANCING ACTIVITIES:                                                       
  Proceeds from borrowings of short-term                                    
   debt                                                   -             750 
  Debt principal payments                               (59)            (30)
                                             --------------  -------------- 
    Net cash (used in) provided by financing                                
     activities                                         (59)            720 
                                             --------------  -------------- 
                                                                            
Change in cash                                       (2,538)         (2,768)
  Cash - Beginning of the Period                      4,534           4,456 
                                             --------------  -------------- 
  Cash - End of the Period                   $        1,996  $        1,688 
                                             ==============  ============== 
                                                                            
                                                                            
                                                                            
                                                                            
NORTHERN POWER SYSTEMS CORP.                                                
                                                                            
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA NET LOSS        
(unaudited)                                                                 
FOR THE PREDECESSOR COMPANY WIND POWER HOLDINGS, INC.                       
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013                          
(All amounts in thousands)                                                  
                                                                            
                                               For the three months ended   
                                             March 31, 2014  March 31, 2013 
                                                                            
NET LOSS                                     $       (3,124) $       (3,384)
Interest expense                                        240              18 
Provision for income taxes                               14              26 
Depreciation and amortization                           178             227 
Stock compensation expense                              148             122 
Fair value of warrants classified as                                        
 liability                                                -              63 
                                             --------------  -------------- 
Non-GAAP adjusted EBITDA net loss            $       (2,544) $       (2,928)
                                             ==============  ============== 

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
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager - Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, reviewed next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discussed how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has been engaged in t...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.