Active Power Revenues and Losses Both Increase
Active Power Inc. announced revenue for the fourth quarter of fiscal 2005 was $5.2 million, up 9% from the same period last year and 14% from the previous quarter. Revenue for the year ended December 31, 2005 was $17.8 million, up 13% from the 2004 total of $15.8 million.
Net loss for the fourth quarter of 2005 was $6.8 million, or 14 cents per share, compared to a net loss of $5.1 million, or 12 cents per share, for the same period last year and a net loss of $5.2 million, or 11 cents per share in the third quarter of 2005. Net loss for the current quarter was affected by $2.1 million in charges for technology impairments related to license agreements signed in 2000 and 2001 for third party technologies that we have decided not to commercialize and by an increase in our provision for doubtful accounts relating to certain foreign customer receivables.
The company also announced two significant recent sales including an 11 Megawatt UPS order from Caterpillar that will be used to protect a large datacenter in the United States. This order is Active Power's largest single megawatt-class UPS order received to date.
Active Power has also received an order for its new CoolAir DC product from one of the leading producers of photovoltaic modules in Europe. Due to the inherent intermittent nature of alternative energy sources such as wind and solar, companies that focus on such green technologies have long sought a viable solution for storing this clean energy. Lead-acid batteries are typically used, but are toxic and cannot endure continuous cycling, which degrades the performance of the battery significantly over time.
CoolAir DC uses thermal energy and compressed air to provide power, can be cycled regularly without a loss in performance and is environmentally friendly. By using solar energy to heat the thermal storage unit (TSU) and compress air in the storage tanks, energy can be captured and used at a later time.
"We continue to see growth in our megawatt-class UPS business, with five systems shipping during the fourth quarter and the receipt of our largest megawatt-class UPS order to date earlier this week," said Joe Pinkerton, Chairman and CEO of Active Power. "We have also made significant progress on our newest product, CoolAir™ DC, with its public launch and the first sale during the quarter. Our company enters 2006 with the broadest offering of three-phase UPS and energy storage systems on the market. We are making significant investments in sales and marketing to increase our market penetration with these products. To that end, we promoted Jim Clishem to be our President and COO. Jim is focusing our sales teams by geography and has hired two industry veterans to run these groups."