Q1 2013 Highlights
- UPS sales increased
$7.4 million to $11.6 millionfrom first quarter of 2012.
- Gross margin increased to 29.6% versus 26.8% in the first quarter of 2012.
- Cash and cash equivalents increased to
$15.0 millionat March 31, 2013, from $13.5 millionat December 31, 2012.
- New strategic distribution partnership agreement with
Digital China Information Service Company Limited, the largest IT solutions provider in China.
- Deployed CleanSource® UPS systems to a number of marquee customers including a leading oil and gas producer and 21Vianet, one of the largest data center services provider in
- Introduced new PowerHouse™ products that provide lower acquisition cost, faster time to deployment, and superior management capability, particularly when compared to a conventional data center electrical room.
Q1 2013 Financial Results
Revenue in the first quarter of 2013 was
Gross margin in the first quarter of 2013 was 29.6% compared to 39.5% in the previous quarter and 26.8% in the first quarter of 2012. The sequential decrease in gross margin is primarily due to higher percentage of sales derived from a distributor channel in
Net loss in the first quarter was
Adjusted EBITDA for the first quarter of 2013 was
Cash and cash equivalents increased to
"Our first quarter results reflect our focus on the 2013 priorities laid out at the beginning of the year, particularly in the growth of core power systems sales," said
"We are pleased with the improvement in our gross margin compared to the first quarter of 2012 which reflects a more favorable overall product mix and cost containment efforts."
"Moving ahead, we plan to leverage our products' unmatched power density, reliability, and total cost of ownership to build on the steady growth of our CleanSource UPS and CleanSource® High Density UPS product lines. We will also accelerate growth of our modular infrastructure solutions supported by our new PowerHouse products. We believe these highly differentiated products coupled with a rapidly expanding data center market places us in a favorable position to compete and to grow the business profitably."
Changes in cash and investments in the second quarter are expected to be minimal and driven by changes in working capital requirements.
Conference Call and Webcast
Founded in 1992,
Non-GAAP Financial Information
See "About Presentation of Adjusted EBITDA" below for the definition of adjusted EBITDA, a non-GAAP financial metric, and an important discussion about the use of this metric and its reconciliation to GAAP net income, the most directly comparable GAAP financial measure.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements that involve risks and uncertainties, including statements relating to anticipating field product deployments later this year; plans to leverage our products to build on the steady growth of our CleanSource UPS and CleanSource High Density UPS product lines; accelerating the growth of our modular infrastructure solutions; our belief that these highly differentiated products coupled with a rapidly expanding data center market places us in a favorable position to compete and to grow the business profitably; our revenue and earnings per share guidance for the second quarter of 2013; and our expected changes in cash and investments in the second quarter.
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, our dependence on our relationships with
For more information on the risk factors that could cause actual results to differ from these forward looking statements, please refer to
|Active Power, Inc.|
|Condensed Consolidated Statement of Operations|
|(in thousands, except per share amounts; unaudited)|
|Three Months Ended March 31,|
|Service and other revenue||2,974||3,392|
|Cost of goods sold:|
|Cost of product revenue||11,004||11,996|
|Cost of service and other revenue||2,104||2,495|
|Total cost of goods sold||13,108||14,491|
|Research and development||1,631||1,288|
|Selling and marketing||2,937||3,547|
|General and administrative||1,134||1,544|
|Total operating expenses||5,702||6,379|
|Loss from Operations||(200||)||(1,072||)|
|Interest expense, net||(82||)||(114||)|
|Other income, net||9||39|
|Net loss per share, basic and diluted||$||(0.01||)||$||(0.07||)|
|Shares used in computing net loss per share, basic and diluted||19,225||16,966|
|Active Power, Inc.|
|Condensed Consolidated Balance Sheets|
|March 31, 2013||December 31, 2012|
|Cash and cash equivalents||$||15,049||$||13,524|
|Accounts receivable, net of allowance for doubtful accounts of $446 and $488 at March 31, 2012 and December 31, 2012, respectively||17,560||17,862|
|Prepaid expenses and other||999||567|
|Total current assets||$||43,167||43,032|
|Property and equipment, net||2,427||2,458|
|Deposits and other||302||309|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Revolving line of credit||5,535||5,535|
|Total current liabilities||$||19,208||19,087|
|Preferred stock - $0.001 par value; 2,000 shares authorized||-||-|
|Common stock - $0.001 par value; 30,000 shares authorized; 19,298 and 19,171 issued and 19,244 and 19,125 outstanding at March 31, 2013 and December 31, 2012, respectively||19||19|
|Additional paid-in capital||289,144||288,619|
|Other accumulated comprehensive income||21||322|
|Total stockholders' equity||25,914||25,999|
|Total liabilities and stockholders' equity||$||45,896||$||45,799|
|Active Power, Inc.|
|Revenue by Product||3 Months Ended|
|2013||% of total||2012||% of total|
|Total Product Revenue||15,636||84||%||16,406||83||%|
|Revenue by Geography|
|March 31,||Dec 31,|
|Stock Based Compensation||137||364||279|
|Impairment of Long-Lived Assets||(17||)||-||218|
About Presentation of Adjusted EBITDA
Beginning with the reporting of results for the fourth quarter of 2012, the company began to report the measures of adjusted EBITDA. Adjusted EBITDA is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income, operating income or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The company defines adjusted EBITDA as net loss before impairment of long-lived assets, depreciation, interest, and non-cash stock based compensation. Other companies (including competitors) may define adjusted EBITDA differently. The company presents adjusted EBITDA because management believes it is to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Management also uses this information internally for forecasting and budgeting. It may not be indicative of the historical operating results of