Active Power Reports First Quarter 2012 Results

Marketwired

AUSTIN, TX--(Marketwire -04/24/12)- Active Power (ACPW - News), manufacturer of continuous power and infrastructure solutions, reported results for its first quarter ended March 31, 2012.

Q1 2012 Highlights

  • $19.8 million in quarterly revenue, up 14% from same year-ago quarter, representing a record first quarter and second highest revenue quarter overall

  • 47% increase in revenues in the Americas versus same year-ago quarter

  • $13.6 million in continuous power and infrastructure solutions revenue, representing 68% of revenue for the quarter

  • $8.2 million or 398% increase in information technology (IT) channel revenues compared to the same year-ago quarter

  • Improved gross margin to 27% versus 20% in the previous quarter

  • Appointed Doug Milner as the company's new president and CEO

  • Completed equity financing with existing investors resulting in net proceeds of $9.6 million

Management Commentary

"The company remains focused on the near-term priorities put in place late last year to grow our core UPS business, improve upon execution, and return margins to acceptable levels," said Doug Milner, president and CEO, Active Power. "These efforts resulted in a substantial improvement in gross margin."

"Given our unique products and solutions, a marquee customer base, and the support of a growing global market, we believe Active Power remains strongly positioned for further growth," continued Milner. "However, we see further opportunities to make improvements to the business not only internally, but also how we go to market and engage our customers in the field. We believe our focus on basic fundamentals will also enable us to achieve profitability. While our outlook remains conservative, we believe we are well on track for much improved performance in 2012."

Q1 2012 Financial Results

First quarter 2012 revenues were $19.8 million, an increase of $1.5 million, or 8%, from the previous quarter and an increase of $2.5 million, or 14%, from the same year-ago quarter.

Gross margin for the quarter was 27% of revenue compared to 20% in the previous quarter and was unchanged from the same year-ago quarter.

Net loss for the quarter was $1.1 million, or $(0.01) per share. This compares to net loss of $3.3 million, or $(0.04) per share, in the previous quarter and was unchanged from the same year-ago quarter.

Outlook

Active Power expects second quarter 2012 revenues to range between $18 million and $22 million. Second quarter earnings per share is expected to be a loss between $(0.02) to $(0.00) per share. Changes in cash and investments are expected to be minimal and driven by changes in working capital requirements.

Conference Call and Webcast

Active Power will host a conference call today, Tuesday, April 24, 2012, at
4:30 p.m. (ET) to discuss its first quarter 2012 results. Interested parties can dial into the call at the time of the event at (877) 551-8082. For callers outside the United States, please dial (904) 520-5770.

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

About Active Power
Founded in 1992, Active Power (ACPW - News) designs and manufactures continuous power solutions and critical backup power systems that enable datacenters and other mission critical operations to remain 'on' 24 hours a day, seven days a week. Active Power solutions are intelligently efficient, inherently reliable and economically green, providing environmental benefits and energy and space efficiencies to customers' financial benefit. The company's products and solutions are built with pride in Austin, Texas, at a state-of-the-art, ISO 9001:2008 registered manufacturing and test facility. Global customers are served via Austin and three regional operations centers located in the United Kingdom, Germany, and China, supporting the deployment of systems in more than 40 countries. For more information, visit www.activepower.com.

Cautionary Note Regarding Forward-Looking Statements
This release may contain forward-looking statements that involve risks and uncertainties, including statements relating to Active Power's current expectations of operating results for the second quarter of 2012, its future operating results, and customers' current intentions. Any forward-looking statements and all other statements that may be made in this news release that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. Factors that could cause the actual results to differ materially from the results predicted include, among others, the deferral or cancellation of sales commitments as a result of general economic conditions or uncertainty, risks related to our international operations, and product performance and quality issues. For more information on the risk factors that could cause actual results to differ from these forward looking statements, please refer to Active Power filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2011, and its Current Reports on Form 8-K filed since then. Active Power assumes no obligation to update any forward-looking statements or information which are in effect as of their respective dates.

Active Power, CleanSource and CoolAir are registered trademarks of Active Power, Inc. The Active Power logo, PowerHouse and PowerCentre are trademarks of Active Power, Inc. All other trademarks are the properties of their respective companies.

 

                             ACTIVE POWER, INC.
                     CONDENSED STATEMENTS OF OPERATIONS
                   (Thousands, except per share amounts)
                                (unaudited)
                                                           Three
                                                        Months Ended
                                                         March 31,
                                                    2012           2011
                                                ------------  -------------


Product revenue                                 $     16,406  $      14,738
Service and other revenue                              3,392          2,591
                                                ------------  -------------
      Total revenue                                   19,798         17,329

    Cost of product revenue                           11,996         10,522
    Cost of service and other revenue                  2,495          2,097
                                                ------------  -------------
      Total cost of goods sold                        14,491         12,619

Gross profit                                           5,307          4,710

Operating expenses:
    Research and development                           1,288            921
    Selling and marketing                              3,547          3,470
    General and administrative                         1,544          1,368
                                                ------------  -------------
      Total operating expenses                         6,379          5,759
                                                ------------  -------------
Operating loss                                        (1,072)        (1,049)

Interest expense, net                                   (114)           (33)
Other income (expense), net                               39             16
                                                ------------  -------------
Net loss                                        $     (1,147) $      (1,066)
                                                ============  =============

Net loss per share, basic & diluted             $      (0.01) $       (0.01)
Shares used in computing net loss per share,
 basic & diluted                                      84,829         79,848

Comprehensive loss:
  Net loss                                      $     (1,147) $      (1,066)
  Translation gain (loss) on subsidiaries in
   foreign currencies                                     36            310
                                                ------------  -------------

  Comprehensive loss                            $     (1,111) $        (756)
                                                ============  =============


                             ACTIVE POWER, INC.
                          CONDENSED BALANCE SHEETS
                               (In thousands)

                                                   Mar. 31     December 31
                                                    2012           2011
Assets                                           (unaudited)

Current assets:
  Cash and cash equivalents                     $     18,042  $      10,357
  Restricted cash                                      1,400            389
  Accounts receivable, net                            15,609         11,163
  Inventories                                          8,388          9,439
  Prepaid expenses and other                             913            414
                                                ------------  -------------
    Total current assets                              44,352         31,762
Property and equipment, net                            3,133          2,861
Deposits and other                                       407            404
                                                ------------  -------------
    Total assets                                $     47,892  $      35,027
                                                ============  =============

Liabilities and stockholders' equity

Current liabilities:
  Accounts payable                              $      6,139  $       4,757
  Accrued expenses                                     4,184          5,351
  Deferred revenue                                     5,693          2,366
  Revolving line of credit                             5,535          5,535
                                                ------------  -------------
    Total current liabilities                         21,551         18,009

Long-term liabilities                                    748            726
Stockholders' equity:
  Common stock                                            95             80
  Treasury stock                                        (115)          (115)
  Additional paid-in capital                         287,421        277,023
  Accumulated deficit                               (262,042)      (260,895)
  Other accumulated comprehensive loss                   234            199
                                                ------------  -------------
    Total stockholders' equity                        25,593         16,292
                                                ------------  -------------
    Total liabilities and stockholders' equity  $     47,892  $      35,027
                                                ============  =============



                             ACTIVE POWER, INC.
                        SUPPLEMENTAL FINANCIAL DATA

                                                Three Months Ended Mar. 31,
                                               ----------------------------
$'000                                               2012           2011
                                               -------------  -------------

Product Revenue:
UPS products                                   $       4,216  $       9,315
Continuous Power Solutions                             4,931          4,672
Infrastructure Solutions                               7,259            751
                                               -------------  -------------
                                               $      16,406  $      14,738
                                               -------------  -------------



Selected Balance Sheet Data: ($'000)              Mar. 31,       Dec. 31,
                                                    2012           2011
Inventory:
Raw materials                                  $       5,859  $       6,493
Work in progress                                       2,293          3,085
Finished goods                                         1,822          1,680
Less reserves for obsolescence                        (1,586)        (1,819)
                                               -------------  -------------
                                               $       8,388  $       9,439
                                               -------------  -------------

Receivables:
Americas                                       $      11,693  $       7,058
EMEA                                                   2,495          2,597
Asia                                                   1,421          1,508
                                               -------------  -------------
                                               $      15,609  $      11,163
                                               -------------  -------------

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