Active Power Announces Fourth Quarter & End Of Fiscal Year 2007 Results
Active Power, Inc. announced results for its fourth quarter and year ended Dec. 31, 2007. Revenue for fourth quarter of fiscal 2007 was a record $10.2 million, a 24% increase from the same period last year and an increase of 24% from the previous quarter. For the year ended December 31, 2007, revenue was a record $33.6 million, a 34% increase over the $25 million recorded in 2006. The quarterly change in cash and investments was a record low of $300 thousand that included $600 thousand in payments for the company’s stock option review expenses. Cash and investments on December 31, 2007, were $22.5 million.
Net loss for the quarter was $5.9 million, or 10 cents per share, including $2.1 million or 4 cents per share for an inventory and asset impairment charge related to the CoolAir product family. This compares to a net loss of $3.8 million, or 8 cents per share for the same period last year and a net loss of $3.5 million, or 6 cents per share in the previous quarter. The prior year results included a $1.8 million litigation settlement Active Power received.
For the year, Active Power reported a net loss of $20.5 million or 38 cents per share, compared to a net loss of $21.1 million or 43 cents per share recorded in 2006. The 2007 results also included $2.9 million or 5 cents per share for costs associated with the company’s stock option investigation and the inventory and asset impairment charge of $2.1 million. Excluding these items, Active Power’s higher revenue, improved margins and lower operating expenses resulted in a comparable $6.6 million (29%) reduction in operating losses in 2007 compared to 2006.
For the quarter and prior to recording an inventory and asset impairment charge, Active Power reported a gross profit margin of 19% compared to 1% in the same period last year and 19% in the previous quarter. For the year, prior to these charges, Active Power reported a gross margin of 16%, compared to 3% in 2006. The continued improvement in gross profit margins is attributable to higher selling prices, an increase in direct sales transactions and a 80% increase in service revenues.
"Our focus on service and solution selling and dedicated efforts at broadening the company’s sales channels and geographic markets are paying dividends, resulting in record revenues and improving financial results," said Jim Clishem, President and CEO of Active Power. "This quarter continued to show improvements in revenues and cash burn which moves Active Power closer to its near-term goal of reaching operating profitability. Active Power’s substantial year-over-year revenue gains continue to edify market acceptance of our critical backup power solutions."