Click here to close now.


News Feed Item

Northern Power Systems Announces Q2 2014 Financial Results

Strong Revenue Growth; Substantially Reduced EBITDA Losses

BARRE, VT--(Marketwired - August 05, 2014) -

Second Quarter 2014 Highlights:

  • Expanded quarterly revenues to $13.8 million from $4.3 million in the prior year period; revenue expansion driven by strong continued demand for the Company's distributed class turbines.
  • Reduced quarterly net loss to $2.2 million from $2.8 million in the prior year period, and quarterly non-GAAP EBITDA loss to $1.3 million from $3.0 million in the prior year quarter; driven by sales into higher wind regimes and production cost control.
  • Completed prototype of next generation distributed class turbine which will offer improved performance and economic returns.
  • Concluded capital raise of $22.3 million in April, supporting strategic plans for global expansion in sales of Northern Power's offerings.

Northern Power Systems Corp. (TSX: NPS), a next generation renewable energy technology company, today announced financial results for its three and six month periods ended June 30, 2014.

"Our second quarter financial results demonstrated continued strong year-over-year revenue growth. With our next generation distributed turbine ready for the market and our capital raise concluded, we are planning our targeted expansion strategy to enter new regions and market sectors," said Troy Patton, president and chief executive officer. "We also continue to be very pleased with the scope of our strategic partnership with WEG Industries. WEG's production and delivery of 2MW turbines leveraging our licensed technology platform continues on pace to fill its current Brazilian orders of greater than 150 MW. The 3.3MW turbine now under development supported by Northern Power should add to a strong portfolio of offerings for WEG's commercialization of our permanent magnet/direct drive technology in this rapidly expanding market."

"Our significant reductions in quarterly net loss and non-GAAP EBITDA loss, at 22 percent and 58 percent year-over-year, respectively, are demonstrating our path toward break-even," commented Ciel Caldwell, chief financial officer. "We are optimistic in our continued progress of tracking to profitability."

Consolidated Financial Metrics:

  • Revenue for the second quarter of fiscal year 2014 grew to $13.8 million, a 220 percent increase over revenue of $4.3 million reported in the prior year period.
  • Order backlog at June 30, 2014 was $41 million, a 21 percent increase over backlog of $34 million at June 30, 2013.
  • Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the second quarter was 16 percent, up from a gross margin loss of 1 percent in the prior year period.
  • GAAP net loss for the second quarter was $2.2 million, representing a 22 percent decrease compared to a $2.8 million loss in the prior year period.
  • Non-GAAP adjusted EBITDA loss for the second quarter was $1.3 million, representing a 58 percent decrease compared to a non-GAAP adjusted EBITDA loss of $3.0 million, in the prior year period.
  • Cash used in operations in the second quarter was $6.9 million, representing a 244 percent increase compared to a $2.0 million usage of cash for operations in the prior year period.
  • Debt at June 30, 2014 was $0 as compared to $12.5 million at December 31, 2013.

Webcast and conference call reminder

In conjunction with this announcement Northern Power Systems' management will present prepared remarks and participate in a question and answer session at 5:00 p.m. EDT on August 5, 2014. Those who wish to view the presentation should visit the "Investors" section of the Northern Power Systems' website at The live call can be accessed domestically at +1-877-317-6789 and internationally at +1-412-317-6789. Participants should ask to be joined to the Northern Power Systems call.

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. Non-GAAP adjusted 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.

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

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.

NORTHERN POWER SYSTEMS CORP.                                                
(All amounts in thousands, except share and per share amounts)              
                     For the three months ended   For the six months ended  
                         June 30,      June 30,      June 30,      June 30, 
                             2014          2013          2014          2013 
 Net revenue          $    13,770   $     4,306   $    27,526   $     5,984 
COSTS OF REVENUE AND                                                        
 OPERATING EXPENSES:                                                        
 Cost of revenues          11,574         4,364        24,140         6,208 
 Sales and marketing          898           755         1,678         1,328 
 Research and                                                               
  development               1,077         1,006         2,216         2,011 
 General and                                                                
  administrative            2,393         1,540         4,569         3,052 
                     ------------- ------------- ------------- -------------
  Total costs of                                                            
   revenue and                                                              
   operating expenses      15,942         7,665        32,603        12,599 
                     ------------- ------------- ------------- -------------
 Loss from operations      (2,172)       (3,359)       (5,077)       (6,615)
 Change in fair value                                                       
  of warrants                   -           724             -           661 
 Interest income                5             -             5             - 
 Interest expense             (37)         (111)         (277)         (129)
  income/(expense)             67            (4)          102           (25)
                     ------------- ------------- ------------- -------------
 Loss before                                                                
  provision for                                                             
  income taxes             (2,137)       (2,750)       (5,247)       (6,108)
 Provision for income                                                       
  taxes                        15             3            29            29 
                     ------------- ------------- ------------- -------------
NET LOSS                   (2,152)       (2,753)       (5,276)       (6,137)
 Foreign currency                                                           
  translation                 (88)            -           (88)            - 
                     ------------- ------------- ------------- -------------
COMPREHENSIVE LOSS    $    (2,064)  $    (2,753)  $    (5,188)  $    (6,137)
                     ============= ============= ============= =============
Net loss applicable                                                         
 to common                                                                  
 shareholders         $    (2,152)  $    (3,801)  $    (5,276)  $    (8,708)
Net loss per common                                                         
 Basic and diluted    $     (0.10)  $    (13.22)  $     (0.31)  $    (57.29)
Weighted average                                                            
 number of common                                                           
 shares outstanding                                                         
 Basic and diluted     21,088,589       287,413    16,964,388       151,995 
NORTHERN POWER SYSTEMS CORP.                                                
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)                           
 POWER HOLDINGS, INC.                                                       
(All amounts in thousands)                                                  
                                                June 30,       December 31, 
ASSETS                                              2014               2013 
CURRENT ASSETS:                                                             
 Cash and cash equivalents              $         15,394   $          4,534 
 Accounts receivable                               3,535              1,175 
 Unbilled revenue                                  2,724                786 
 Inventories - net                                13,568             11,682 
 Other current assets                              2,579              2,808 
                                       ------------------ ------------------
  Total current assets                            37,800             20,985 
 Property, plant and equipment - net               1,538              1,414 
 Asset held for sale                                   -              1,300 
 Intangible assets - net                             416                509 
 Goodwill                                            722                722 
 Other assets                                        731              2,615 
                                       ------------------ ------------------
  Total Assets                          $         41,207   $         27,545 
                                       ================== ==================
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
CURRENT LIABILITIES:                                                        
 Current portion of long-term debt      $              -   $            141 
 Senior secured convertible notes                      -             12,107 
 Accounts payable                                  3,315              2,148 
 Accrued expenses                                  5,668              4,365 
 Deferred revenue                                  6,772              4,221 
 Customer deposits                                 6,440             10,917 
 Other current liabilities                           717              3,327 
                                       ------------------ ------------------
  Total current liabilities                       22,912             37,226 
                                       ------------------ ------------------
 Deferred revenue, less current portion            1,491              1,163 
 Other long-term liability                           289                558 
                                       ------------------ ------------------
  Total Liabilities                               24,692             38,947 
                                       ------------------ ------------------
STOCKHOLDERS' EQUITY (DEFICIENCY):                                          
Common stock                                     165,505                128 
Additional paid-in capital                         7,532            139,804 
Accumulated other comprehensive income                88                  - 
Accumulated deficit                             (156,610)          (151,334)
                                       ------------------ ------------------
  Total Stockholders' Equity                                                
   (Deficiency)                                   16,515            (11,402)
                                       ------------------ ------------------
Total Liabilities and Stockholders'                                         
 Equity (Deficiency)                    $         41,207   $         27,545 
                                       ================== ==================
The accompanying notes are an integral part of these condensed consolidated 
 financial statements.                                                      
NORTHERN POWER SYSTEMS CORP.                                                
(All amounts in thousands)                                                  
                     For the three months ended   For the six months ended  
                         June 30,      June 30,      June 30,      June 30, 
                             2014          2013          2014          2013 
OPERATING ACTIVITIES:                                                       
 Net loss             $    (2,152)  $    (2,753)  $    (5,276)  $    (6,137)
Adjustments to                                                              
 reconcile net loss                                                         
 to net cash used in                                                        
 Change in fair value                                                       
  of warrants                   -          (724)            -          (661)
 Provision for                                                              
  obsolescence                  -             -            93            48 
 Provision for                                                              
  doubtful accounts           (25)            -           (88)            1 
  expense                     454            57           602           179 
 Depreciation and                                                           
  amortization                391           310           569           537 
 Noncash restructure                                                        
  charges                       -           (31)            -            19 
 Deferred income                                                            
  taxes                         -             4             3             7 
Changes in operating                                                        
 assets and                                                                 
 Accounts receivable                                                        
  and unbilled                                                              
  revenue                    (587)          435        (4,209)          356 
 Other current and                                                          
  noncurrent assets           296           115           184           408 
 Inventories               (1,136)          105        (1,979)       (1,338)
 Accounts payable          (1,024)           53         1,167            (4)
 Accrued expenses            (674)          252         1,416           386 
 Customer deposits         (3,313)         (335)       (4,477)        1,018 
 Other liabilities            880           508         2,821          (258)
  Net cash used in                                                          
   activities              (6,890)       (2,004)       (9,174)       (5,439)
                     ------------- ------------- ------------- -------------
INVESTING ACTIVITIES:                                                       
 Proceeds from sale                                                         
  of property               1,300             -         1,300             - 
 Purchases of                                                               
  property and                                                              
  equipment                  (405)          (18)         (600)          (71)
                     ------------- ------------- ------------- -------------
  Net cash provided                                                         
   (used) by                                                                
   activities                 895           (18)          700           (71)
                     ------------- ------------- ------------- -------------
FINANCING ACTIVITIES:                                                       
 Proceeds equity                                                            
  financing                19,662             -        19,662             - 
 Proceeds from                                                              
  exercise of stock                                                         
  options                      25             -            25             - 
 Proceeds from                                                              
  issuance of                                                               
  convertible notes             -         4,525             -         4,525 
 Proceeds from                                                              
  borrowings of                                                             
  short-term debt               -          (750)            -             - 
 Debt principal                                                             
  payments                   (382)          (32)         (441)          (62)
                     ------------- ------------- ------------- -------------
  Net cash provided                                                         
   by financing                                                             
   activities              19,305         3,743        19,246         4,463 
                     ------------- ------------- ------------- -------------
Effect of exchange                                                          
 rate change on cash           88             -            88             - 
Change in cash and                                                          
 cash equivalents          13,398         1,721        10,860        (1,047)
 Cash and cash                                                              
  equivalents -                                                             
  Beginning of the                                                          
  Period                    1,996         1,688         4,534         4,456 
                     ------------- ------------- ------------- -------------
 Cash and cash                                                              
  equivalents - End                                                         
  of the Period       $    15,394   $     3,409   $    15,394   $     3,409 
                     ============= ============= ============= =============
NORTHERN POWER SYSTEMS CORP.                                                
 PREDECESSOR COMPANY WIND POWER HOLDINGS, INC.                              
(All amounts in thousands)                                                  
                     For the three months ended   For the six months ended  
                         June 30,      June 30,      June 30,      June 30, 
                             2014          2013          2014          2013 
NET LOSS              $    (2,152)  $    (2,753)  $    (5,276)  $    (6,137)
Interest expense               37           111           277           129 
Provision for income                                                        
 taxes                         15             3            29            29 
Depreciation and                                                            
 amortization                 391           310           569           537 
Stock compensation                                                          
 expense                      454            57           602           179 
Fair value of                                                               
 warrants classified                                                        
 as liability                   -          (724)            -          (661)
                     ------------- ------------- ------------- -------------
Non-GAAP adjusted                                                           
 EBITDA net loss      $    (1,255)  $    (2,996)  $    (3,799)  $    (5,924)
                     ============= ============= ============= =============

The following files are available for download:

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
SYS-CON Events announced today that Catchpoint, a global leader in monitoring, and testing the performance of online applications, has been named "Silver Sponsor" of DevOps Summit New York, which will take place on June 7-9, 2016 at the Javits Center in New York City. Catchpoint radically transforms the way businesses manage, monitor, and test the performance of online applications. Truly understand and improve user experience with clear visibility into complex, distributed online systems.Founde...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
"eFolder does a lot of different things but we protect data and we are focused on protecting data no matter where it resides," explained Carlo Tapia, Product Marketing Manager at eFolder, in this interview at Cloud Expo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Cloud computing is unquestionably one of the driving forces of DevOps, as the automation of operations transforms enterprise software development. DevOps, however, is more than a technology trend, as it represents a move toward silo-busting, self-organizing horizontal teams that drive business velocity. At the same time, enterprise Digital Transformation represents an upheaval across the enterprise, as customer preferences and behavior drive enterprise technology decisions. This transformation ...
Most of the IoT Gateway scenarios involve collecting data from machines/processing and pushing data upstream to cloud for further analytics. The gateway hardware varies from Raspberry Pi to Industrial PCs. The document states the process of allowing deploying polyglot data pipelining software with the clear notion of supporting immutability. In his session at @ThingsExpo, Shashank Jain, a development architect for SAP Labs, discussed the objective, which is to automate the IoT deployment proces...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
In demand-intensive mobile and web applications, an emerging pattern is to host the Systems of Engagement in the cloud (for maximum responsiveness) but keep the Systems of Record with the other important business systems in the company datacenter, often on a tightly secured mainframe. But what about the space in between? In this IBM Redpaper publication, we show that the IBM Bluemix cloud platform offers technologies that make it easy for cloud-based SoEs to securely connect to on-premises IBM...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
OpsHub, Inc. has announced enhanced support for DevOps and Migration for both Team Foundation Server and Visual Studio On-line in a heterogeneous environment. With added support for build and release entities in OpsHub Integration Manager (OIM) Microsoft customers can now leverage Visual Studio build and release services to manage DevOps processes in a heterogeneous environment. With the enhanced support customers can manage the DevOps process in Team Foundation Server while undertaking activit...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.