Beacon Power Announces First-Quarter 2006 Results
Beacon Power Corp. (NASDAQ: BCON), announced its financial results for the first quarter ended March 31, 2006. For the first quarter of 2006, Beacon Power reported revenue of $289,000 and a net loss of $2,822,000, or ($0.05) per share, compared to revenue of $636,000 and a net loss of $2,245,000, or ($0.05) per share, in the first quarter of 2005.
During the first quarter of 2006, Beacon Power incurred costs of $1,061,000 in research and development expense, compared to $486,000 in the first quarter of 2005. Selling, general and administrative expense was $1,930,000 during the first quarter of 2006, compared to $1,172,000 in the first quarter of 2005. At March 31, 2006, the Company had $12.5 million in cash and cash equivalents, with working capital of $11.2 million.
On January 1, 2006, Beacon Power adopted the provisions of Statement of Financial Accounting Standards No. 123(R) which requires the expensing of share-based awards. As a result, the Company recorded a non-cash charge of $342,000 in the quarter ended March 31, 2006 to reflect share-based compensation expense, which is reflected in research and development expense and selling, general and administrative expenses.
Beacon Power continues to make steady progress on its two installed Smart Energy Matrix demonstration systems in California and New York, which are expected to be commissioned and begin formal contract-specified testing periods in Q2 2006. Both systems have performed well thus far, and benefited from in-field improvements and upgrades made prior to the official testing. It is expected that both systems will complete their demonstrations and be formally evaluated by the respective energy authorities this year.
The Company is also developing its fourth-generation 25-kWh flywheel system, which will be the core component of commercial-scale Smart Energy Matrix frequency regulation systems. The Smart Energy 25 development effort is on schedule, with a prototype unit expected to be running in Q4 2006. In addition to being the core of the Smart Energy Matrix, this new "Gen 4" flywheel also has market potential for other electric power applications, such as oil and gas exploration, wind system integration, distributed generation and several off-grid uses.