Highlights
- Service revenue increased 17% from the first quarter of 2013 to
$3.5 million , but decreased 25% from the previous quarter. - Shipped a large UPS order to
ABN AMRO , a Dutch state-owned bank, for deployment at one of the bank's facilities located south ofAmsterdam . - Booked first order from
Caterpillar for CleanSource® HD UPS for shipment to one of the largest medical centers inthe Netherlands . - Appointed a new sales and marketing director in
China who brings more than 18 years of sales and marketing experience in the critical power infrastructure and energy markets. - Appointed a chief knowledge officer who brings deep technical experience in data center design, planning, and consulting to strengthen
Active Power's voice in the mission critical and energy storage markets. - Completed public offering of 3.7 million newly issued shares at a price of
$3.15 per share, generating approximately$10.5 million in net proceeds to the company.
Unless otherwise stated, all comparisons are to the period ended
Q1 2014 Financial Results
Revenue in the first quarter of 2014 was
Gross margin in the first quarter of 2014 was 26.8% compared to 30.2% in the year-ago period and 30.0% in the previous quarter. The decrease in gross margin from the previous quarter and the first quarter of 2013 were primarily due to higher unabsorbed production costs in 2014.
Operating expenses in the first quarter of 2014 were
Net loss in the first quarter of 2014 was
Adjusted EBITDA in the first quarter of 2014 was a negative
Cash and cash equivalents totaled
Management Commentary
"We completed our first full quarter with the new executive team and sales organization in place and are executing against our new strategy which we began rolling out in December," said
"Moving ahead, we remain focused on our three priorities which include generating consistent sales performance; maximizing the products and solutions we have in place now to grow the business; and positioning
Conference Call and Webcast
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About
Founded in 1992,
Non-GAAP Financial Measure
This press release includes information about our adjusted EBITDA, which is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles. In the following tables,
Cautionary Note Regarding Forward-Looking Statements
Statements in this press release that relate to future results and events (including statements about the anticipated success of our new strategy; our expectations that bookings made during the quarter will ship later in the year; our future financial and operating performance; and statements relating to generating consistent sales performance, prospects for growing the business and improving profitability, and increasing bookings and consistency of order flow) are forward-looking statements based on
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) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| (unaudited) | ||||||||||
| 2014 | 2013 | |||||||||
| (restated) | ||||||||||
| Revenues: | ||||||||||
| Product revenue | $ | 7,457 | $ | 11,450 | ||||||
| Service and other revenue | 3,481 | 2,974 | ||||||||
| Total revenue | 10,938 | 14,424 | ||||||||
| Cost of goods sold: | ||||||||||
| Cost of product revenue | 5,905 | 7,966 | ||||||||
| Cost of service and other revenue | 2,105 | 2,104 | ||||||||
| Total cost of goods sold | 8,010 | 10,070 | ||||||||
| Gross profit | 2,928 | 4,354 | ||||||||
| Operating expenses: | ||||||||||
| Research and development | 2,080 | 1,631 | ||||||||
| Selling and marketing | 2,888 | 2,937 | ||||||||
| General and administrative | 1,606 | 1,134 | ||||||||
| Total operating expenses | 6,574 | 5,702 | ||||||||
| Loss from Operations | (3,646 | ) | (1,348 | ) | ||||||
| Interest expense, net | (101 | ) | (82 | ) | ||||||
| Other income (expense), net | (127 | ) | 9 | |||||||
| Net Loss | $ | (3,874 | ) | $ | (1,421 | ) | ||||
| Net Loss per share, basic and diluted | $ | (0.19 | ) | $ | (0.07 | ) | ||||
| Shares used in computing net loss per share, basic and diluted | 20,574 | 19,225 | ||||||||
| Active Power, Inc. | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| (in thousands, except par value) | ||||||||||
| March 31, 2014 |
December 31, 2013 |
|||||||||
| (unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 18,656 | $ | 12,261 | ||||||
| Restricted cash | 520 | 520 | ||||||||
| Accounts receivable, net of allowance for doubtful accounts of $261 and $313 at March 31, 2014 and December 31, 2013, respectively | 9,398 | 9,075 | ||||||||
| Inventories, net | 12,921 | 12,020 | ||||||||
| Prepaid expenses and other | 575 | 680 | ||||||||
| Total current assets | 42,070 | 34,556 | ||||||||
| Property and equipment, net | 2,798 | 3,056 | ||||||||
| Deposits and other | 296 | 295 | ||||||||
| Total assets | $ | 45,164 | $ | 37,907 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 4,427 | $ | 2,993 | ||||||
| Accrued expenses | 4,530 | 5,583 | ||||||||
| Deferred revenue | 2,577 | 2,749 | ||||||||
| Revolving line of credit | 5,535 | 5,535 | ||||||||
| Total current liabilities | 17,069 | 16,860 | ||||||||
| Long-term liabilities | 746 | 741 | ||||||||
| Stockholders' equity | ||||||||||
| Preferred stock - $0.001 par value; 2,000 shares authorized | - | - | ||||||||
| Common stock - $0.001 par value; 30,000 shares authorized; 23,145 and 19,452 issued and 23,079 and 19,388 outstanding at March 31, 2014 and December 31, 2013, respectively | 23 | 19 | ||||||||
| Treasury stock | (222 | ) | (215 | ) | ||||||
| Additional paid-in capital | 301,886 | 290,964 | ||||||||
| Accumulated deficit | (275,042 | ) | (271,168 | ) | ||||||
| Other accumulated comprehensive income | 704 | 706 | ||||||||
| Total stockholders' equity | 27,349 | 20,306 | ||||||||
| Total liabilities and stockholders' equity | $ | 45,164 | $ | 37,907 | ||||||
| Active Power, Inc. | |||||||||||||||||||||
| Supplemental Information (in thousands) | |||||||||||||||||||||
| Revenue by Product | Three Months Ended | ||||||||||||||||||||
| |
March 31, 2014 |
% of total | |
March 31, 2013 |
|
% of total | |
December 31, 2013 |
% of total | |
|
||||||||||
| (restated) | |||||||||||||||||||||
| UPS | $ | 6,636 | 61 | % | $ | 7,420 | 51 | % | $ | 5,889 | 42 | % | |||||||||
| MIS | 821 | 7 | % | 4,030 | 28 | % | 3,411 | 25 | % | ||||||||||||
| Total Product Revenue | 7,457 | 68 | % | 11,450 | 79 | % | 9,300 | 67 | % | ||||||||||||
| Service | 3,481 | 32 | % | 2,974 | 21 | % | 4,626 | 33 | % | ||||||||||||
| Total Revenue | $ | 10,938 | 100 | % | $ | 14,424 | 100 | % | $ | 13,926 | 100 | % | |||||||||
| Revenue by Geography | |||||||||||||||||||||
| Americas | $ | 7,905 | 72 | % | $ | 12,092 | 84 | % | $ | 11,278 | 81 | % | |||||||||
| EMEA | 2,148 | 20 | % | 2,558 | 18 | % | 1,448 | 10 | % | ||||||||||||
| Asia | 885 | 8 | % | (226 | ) | -2 | % | 1,200 | 9 | % | |||||||||||
| Total Revenue | $ | 10,938 | 100 | % | $ | 14,424 | 100 | % | $ | 13,926 | 100 | % | |||||||||
| Adjusted EBITDA | |||||||||||||
| (in thousands) | |||||||||||||
| Three Months Ended | |||||||||||||
| March 31, | March 31, | December 31, | |||||||||||
| 2014 | 2013 | 2013 | |||||||||||
| (restated) | |||||||||||||
| Net Loss | $ | (3,874 | ) | $ | (1,421 | ) | $ | (4,127 | ) | ||||
| Interest Expense | 101 | 82 | 88 | ||||||||||
| Depreciation Expense | 314 | 262 | 280 | ||||||||||
| Stock Based Compensation | 333 | 137 | 784 | ||||||||||
| Impairment of Long-Lived Assets | - | (17 | ) | (3 | ) | ||||||||
| Adjusted EBITDA | $ | (3,126 | ) | $ | (957 | ) | $ | (2,978 | ) | ||||
About Presentation 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 exclusion of these items should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. These excluded items could have a material impact on earnings. While management relies primarily on GAAP results, the company presents adjusted EBITDA because management believes it 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 as a supplemental measure for forecasting and budgeting. Adjusted EBITDA may not be indicative of the historical operating results of
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