Active Power, Inc. announced results for its second quarter ended June 30, 2007. Revenue for the second quarter of fiscal 2007 was a record $9.2 million, up 68% from the same period last year, and an increase of 54% from the previous quarter. For the first six months of 2007, revenue was $15.1 million, a 37% increase over the $11 million recorded in the same period of 2006.
For the quarter, Active Power reported a record gross profit margin of 17% compared to -2% in the same period last year and 6 % in the previous quarter. The increase in gross profit margin in the current quarter was attributable to improved margins on direct sales transactions compared to the previous periods and from an increase in service revenues that generate higher margins. The higher sales volume also allowed the company to utilize more of its manufacturing capacity, reducing its excess overhead cost.
"Our strategy of delivering highly efficient, reliable and green power solutions while increasing direct sales and service have advanced our efforts towards achieving operating profitability," said Jim Clishem, President and CEO of Active Power. "This approach continues to yield improved financial performance, which has resulted in record revenues and a record gross profit with substantial year-over-year gains."
Net loss for the quarter was $4.6 million, or 9 cents per share, compared to a net loss of $6.1 million, or 12 cents per share, for the same period last year and a net loss of $6.4 million, or 13 cents per share, in the previous quarter. Included in the current period net loss were expenses of $1.2 million, or 2 cents per share, in connection with the review of Active Power’s historical stock option granting practices which is now substantially complete.
Overall financial results, excluding the impact of the stock option review, continue to show strength from prior periods with a 47 % reduction in operating loss compared to Q2 of 2006. Cash and investments usage for the quarter was $4.4 million, compared to $4.0 million for the same period last year and $3.7 million for the previous quarter. Cash and investments as of June 30, 2007, were $12.5 million. The company has entered into a letter of intent with its bank for a 24-month, $5 million revolving line of credit facility allowing for borrowings against eligible receivables and inventories to help finance its working capital requirements. As previously disclosed, the company also anticipates seeking additional equity financing in the second half of 2007 based on market conditions.
