News

Active Power Announces Fourth Quarter & 2008 Results

February 01, 2009 by Jeff Shepard

Active Power, Inc. announced results for its fourth quarter and fiscal year ended Dec. 31, 2008. Revenue for the fourth quarter was a record $16.2 million, a 30% increase from the third quarter and an increase of 59% from the fourth quarter in 2007. For the year ended Dec. 31, 2008, revenue was $43.0 million compared to $33.6 million in 2007, an increase of 28% for the year.

For the fourth quarter, net loss was $431,000, or 1 cent per share. This compares to a net loss of $4.1 million, or 7 cents per share, in the prior quarter and a net loss of $5.9 million, or 10 cents per share, for the same period in the prior year. For the year ended Dec. 31, 2008, the net loss was $13.4 million, or 22 cents per share. This compares to a net loss of $20.5 million, or 38 cents per share, in 2007.

EBITDA was a loss of $62,000 for the fourth quarter, or 0 cents per share, compared to an EBITDA loss of $3.7 million or 6 cents per share in the prior quarter and an EBITDA loss of $5.6 million, or 9 cents per share, in the fourth quarter of 2007. For the year ended Dec. 31, 2008, the EBITDA loss was $12 million, or 20 cents per share, compared to an EBITDA loss of $ 19.3 million, or 36 cents per share, in 2007, a 38% decrease.

Active Power recorded positive Adjusted EBITDA in the fourth quarter. Adjusted EBITDA was $374,000 for the fourth quarter, or 1 cent per share, compared to an Adjusted EBITDA loss of $ 1.7 million, or 3 cents per share, in the prior quarter and an Adjusted EBITDA loss of $3.0 million or 5 cents per share in the fourth quarter of 2007. For the year ended Dec. 31, 2008, the Adjusted EBITDA loss was $8.7 million, or 15 cents per share, compared to an Adjusted EBITDA loss of $15.1 million, or 28 cents per share in 2007, a 42% decrease.

In the fourth quarter, Active Power reported a record gross profit margin of 32%. This compares to a 9% gross profit margin in the prior quarter and a negative gross profit margin of 2% in fourth quarter 2007. For the full year, Active Power reported a gross profit margin of 19% compared to 10% in 2007. Cash and investments declined $0.6 million during the quarter compared to a decrease of $2.4 million in the previous quarter and a decrease of $0.3 million in fourth quarter 2007. Cash and investments at Dec. 31, 2008, were $11.2 million.

"We are pleased to have accomplished these significant financial and operational milestones," said Jim Clishem, President and CEO, Active Power. "We have been working diligently to achieve quarterly operating profitability and have achieved positive adjusted EBITDA for the first time in our history. We reached this goal through a focused strategy designed to grow the top line while reducing expenses. Active Power’s space and power efficient systems deliver savings in a way unmatched by our competition. Our focus will remain on preserving cash and improving our own operational efficiencies and operating profitability. Despite a challenging economic outlook ahead, we believe that we will continue to grow market share as clients focus now more than ever on improving efficiency and reducing operating expenses."