Beacon Power Corp. announced its financial results for the second quarter ended June 30, 2006. For the second quarter of 2006, Beacon Power reported revenue of $209,000 and a net loss of $3,273,000, or ($0.06) per share, compared to revenue of $318,000 and a net loss of $1,765,000, or ($0.04) per share, for the second quarter of 2005. For the six months ended June 30, 2006, the company reported revenue of $498,000 and a net loss of $6,094,000, or ($0.10) per share, compared to revenue of $954,000 and a net loss of $4,010,000, or ($0.09) per share, for the same period ended June 30, 2005.
During the quarter ended June 30, 2006, Beacon Power incurred costs of $1,628,000 in selling, general and administrative expense, compared to $1,109,000 in the second quarter of 2005. R&D expense was $1,087,000 during the second quarter of 2006, compared to $150,000 in the second quarter of 2005. Total operating expenses for the three months ended June 30, 2006 were $3,429,000 compared to $1,791,000 for the same period in 2005. At June 30, 2006, the company had $10.2 million in cash and cash equivalents, with working capital of $8.5 million.
On January 1, 2006, Beacon Power adopted the provisions of Statement of Financial Accounting Standards No. 123(Revised 04), which requires the expensing of share-based awards. The company recorded a non-cash charge of $1,349,000 for the six months ended June 30, 2006, and $483,000 for the six months ending June 30, 2005, for share-based compensation expense, which is reflected in R&D expense and selling, general and administrative expenses.
"This quarter brought us closer to our goal of designing and building our first flywheel-based frequency regulation power plant," said Bill Capp, Beacon President and CEO. "During the quarter we began the formal field trial of our Smart Energy Matrix demonstration system in New York, and just last week we reached the same milestone in California. Both systems are now being evaluated by the respective energy authorities, with results expected before the end of this year. At the same time, we continue to make good progress on the development of our next-generation Smart Energy 25 flywheel system, which necessitated increased R&D expenditures for staff and materials during the quarter."
