Active Power Announces Third Quarter 2007 Results
Active Power, Inc. announced results for its third quarter ended Sept. 30, 2007. Revenue for the third quarter of fiscal 2007 was $8.2 million, a 44% increase from the same period last year, and down 10% from the previous quarter. For the first nine months of 2007, revenue was $23.4 million, a 40% increase over the $16.8 million recorded in the same period of 2006. Quarterly cash burn results are $2.8 million, which includes $1.5 million in one-time historical stock option review expenses.
For the quarter, Active Power reported a record gross profit margin of 19% compared to 16% in the same period last year and 17% in the previous quarter. The continuing increase in gross profit margins is attributable to improved margins on direct sales transactions compared to the previous periods and from increases in service revenues that generate higher margins.
Net loss for the quarter was $3.5 million, or 6 cents per share, compared to a net loss of $4.9 million, or 10 cents per share, for the same period last year and a net loss of $4.6 million, or 9 cents per share in the previous quarter. The higher revenues and lower expenses resulted in a 29% reduction in operating losses compared to Q3 of 2006.
"We continue to see improving financial results as we execute on our strategy of geographic expansion, multi-channel distribution, service and selling solutions," said Jim Clishem, President and CEO of Active Power. "Our efforts to increase direct sales and service business are advancing us closer to operating profitability. This quarter continued to yield improvements in gross margins and cash burn. This combined with substantial year-over-year revenue gains are indicative of the market acceptance of Active Power’s highly efficient, reliable and green critical power solutions"
Cash and investment usage for the quarter was $2.8 million, which included $1.5 million for costs associated with the review of Active Power’s historical stock option granting practices. This compares to usage of $4.4 million in the previous quarter and $6.3 million in Q3 of 2006. Cash and investments at Sept. 30, 2007 were $22.8 million after the completion of a private placement of shares in August 2007 that resulted in net proceeds to the company of $13.1 million.