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)
                                             ==============  ============== 

Ciel R. Caldwell
Chief Financial Officer
Northern Power Systems
1 857 209 3606
[email protected] 

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
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
Is it possible to migrate 100% of your data ecosystem to the cloud? Join Joe Caserta as he takes you on a complete journey to digital transformation mapping out on-prem data footprint and walking it to the cloud. Joe will also explain how the modern ecosystem supports Artificial Intelligence and will include business use cases to back each of his insights.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
The now mainstream platform changes stemming from the first Internet boom brought many changes but didn’t really change the basic relationship between servers and the applications running on them. In fact, that was sort of the point. In his session at 18th Cloud Expo, Gordon Haff, senior cloud strategy marketing and evangelism manager at Red Hat, will discuss how today’s workloads require a new model and a new platform for development and execution. The platform must handle a wide range of rec...
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
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 busine...