Active Power Announces Third-Quarter 2005 Results

Active Power Inc. (Austin, TX), a developer of battery-free, power quality products, announced results for its third quarter ended September 30, 2005. Revenue for the third quarter of fiscal 2005 was $4.5 million, up 11 percent from the same period last year and down three percent from the previous quarter. Net loss for the third quarter of 2005 was $5.2 million, or $0.11 per share, compared to a net loss of $10.9 million, or $0.26 per share, for the same period last year, and a net loss of $5.6 million, or $0.12 per share in the second quarter of 2005. The 2004 results included a $4.8 million litigation settlement.

"We achieved positive gross margin in the third quarter due in large part to the continued growth of our direct channel business," said Active Power Chairman and CEO Joe Pinkerton. "Orders for our megawatt-class UPS increased sharply last quarter, and we expect this segment of our business to expand over the next several quarters. We achieved our 60-percent cost-reduction target for CoolAir™ dc and remain on schedule to commercially launch this product at an industry event next month. To that end, we recently engaged 12 manufacturer's representative firms that will focus on selling our CoolAir units in North America."

Active Power expects fourth-quarter 2005 revenue to be approximately $4.5 to $5.5 million, and fourth-quarter earnings per share to be a loss of approximately $0.10 to $0.12. We expect cash and investments usage in the fourth quarter to be in the range of $4.0 to $5.0 million.