Active Power Reports Financial Results and Stock Option Investigation
Active Power, Inc. announced results for its first quarter ended March 31, 2007. Revenue for the first quarter of fiscal 2007 was $6.0 million, up 7% from the same period last year and down 28% from the previous quarter.
Net loss for the first quarter of 2007 was $6.4 million, or $0.13 per share, compared to a net loss of $6.3 million, or $0.13 per share, for the same period last year and a net loss of $4.2 million, or $0.09 per share in the previous quarter. Included in the current period net loss were expenses of $1.5 million, or $0.03 per share, in connection with the review of its historical stock option granting practices. Results from the fourth quarter of 2006 included a $1.78 million gain from settlement of outstanding litigation.
For the quarter, the company reported a gross profit margin of 6% compared to -3% in the same period last year and 1% 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. The improved margin was also influenced by the higher level of direct sales which were 76% of its total sales for the quarter, compared to 66% of its sales in the prior quarter, as well as our recent price increase. Cash and investments usage for the quarter was $3.7 million, compared to $5.0 million for the same period last year and $6.0 million for the previous quarter. Cash and investments at March 31 2007 were $17.0 million.
The company also announced that it has filed with the Securities and Exchange Commission (SEC) its Annual Report on Form 10-K for the year ended December 31, 2006. The Form 10-K filed includes restated financial statements for years 2001 through 2005, and certain restated quarterly information for 2005 and 2006. The total additional stock-based compensation expense recorded as a result of the investigation into the company’s historical stock option granting practices for the years between 2000 and 2006 was $2.82 million. The company had previously reported that it estimated these expenses would be between $1.5 – $3 million.
With the filing, and upon the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, the company believes that it will be current in its SEC reporting obligations and will have satisfied all of the conditions of the NASDAQ Listing Qualifications Panel for the continued listing of its common stock on the Nasdaq Global Market.
