Active Power, Inc. announced revenues for the first quarter of fiscal 2003 totaled $1.6 million, down 61% from the same period the previous year. Included in this decrease was the absence of any development funding during the first quarter of 2003, compared with $1.0 million of development funding for the same period in 2002.
Net loss for the first quarter of 2003 was $6.3 million, or 15 cents per share, compared to a net loss of $6.5 million, or 16 cents per share, in the first quarter of 2002. Consumption of cash and investments for the quarter was $5.3 million, as compared to $8.3 million for the same period last year. Cash and investments at March 31, 2003 were $84.7 million.
"Product revenue was less than expected for the first quarter due primarily to protracted purchasing decisions in a weak capital spending environment. We have, however, seen an increase in end-user quoting activity, particularly for our new 1200 kVA UPS product. We made significant strides in establishing additional sales, distribution and service channels throughout North America and internationally in the first quarter, which we anticipate will begin impacting business activity in the second half of this year," said Joe Pinkerton, Chairman and CEO of Active Power.
"Our product development efforts continue to go well. We are nearing completion of our 65-1200 kVA flywheel-based UPS product line and have recently made excellent strides in the development of a 5-15 minute runtime battery-free system. We intend to leverage our expanded product line and additional sales channels to drive revenue growth over the next several quarters."
Active Power expects a moderate sequential increase in second quarter 2003 revenue. We believe second quarter earnings per share will be a loss of 14 to 15 cents, and consumption of cash and investments will decrease to a range of $4.5 million to $5.0 million.
