Active Power Reports Fourth Quarter 2006 Results
Active Power, Inc. announced preliminary results for its fourth quarter ended December 31, 2006. Because of the continuing internal review of its past stock option granting practices, the company is not providing, at this time, detailed financial information for the fiscal quarter or year ended December 31, 2006. The company intends to issue full results for the quarter and year and to file its Annual Report on Form 10-K as soon as practicable after completion of the option review.
Revenue for the fourth quarter of fiscal 2006 was $8.3 million, up 60% from the same period last year and up 44% from the previous quarter. For the year ended December 31, 2006, revenues were $25 million compared to $17.8 million in 2005, an increase of 41%. Both the fourth quarter and full year revenue amounts were record amounts for the company. The decrease in gross profits in this quarter reflects the variations in product and sales channel mix within various geographies served. Overall gross margins continued to improve from 2005 due to efforts in 2006 to broaden sales channels in multiple geographies to include direct and indirect sales, enter new and premium markets, and accelerate growth in services. During the quarter the company also reached a settlement of the Greenwich Insurance litigation that resulted in gross proceeds to the company of $1.78 million. Total cash and investments at December 31, 2006 were $20.7 million, compared with $26.7 million at the end of the prior quarter. Receivables increased by $3.9 million from September 30 and were $7.7 million at December 31, 2006.
"In the fourth quarter we continued to see positive growth from our EMEA business, which increased revenue by 97% from the previous quarter," said Jim Clishem, President and CEO of Active Power. "Our MegaWatt-Class UPS products have a number of strategic advantages to customers due to higher energy efficiency and power density than alternative UPS products. As we focus our marketing and sales efforts on these product attributes, we are seeing this resonate with new clients. In today’s environment, power efficiency, industrial strength reliability and economically green solutions are getting noticed. Our bookings are significantly greater than where they were a year ago, and we are confident that our products will continue to gain awareness and market share going forward."