Beacon Power Announces Second Quarter 2007 Results
Beacon Power Corp. announced its financial results for the second quarter ended June 30, 2007. For the second quarter of 2007, Beacon Power reported revenue of $449,000 and a net loss of $3,066,000, or ($0.04) per share, compared to revenue of $209,000 and a net loss of $3,273,000, or ($0.06) per share, in the second quarter of 2006. For the six months ended June 30, 2007, the company reported revenue of $842,000 and a net loss of $6,156,000, or ($0.09) per share, compared to revenue of $498,000 and a net loss of $6,094,000, or ($0.10) per share, for the same period ended June 30, 2006.
During the second quarter of 2007, Beacon Power incurred costs of $1,824,000 in research and development expense, compared to $1,087,000 in the second quarter of 2006. Research and development expenses were higher primarily due to increased expenses for development materials, increased headcount-related expenses resulting from hiring engineering personnel, and other expenses to support our flywheel development efforts as well as the design of our initial frequency regulation plant. Selling, general and administrative expense was $1,549,000 during the second quarter of 2007, compared to $1,628,000 in the second quarter of 2006, a decrease of $79,000, or approximately 5%. This decrease is due primarily to lower stock compensation expense, as well as a reduction in subcontract and consulting costs, offset by a slight increase in legal and professional fees. At June 30, 2007, the company had $9.4 million in cash and cash equivalents, with working capital of $7.4 million.
"We continue to make steady progress toward our technological milestones, including development of the Smart Energy 25 and the Smart Energy Matrix frequency regulation plant," said Bill Capp, Beacon President and CEO. "Having gained approvals for our flywheel technology in three of the five open-market grid operating regions, we have several options available to us as to where we will build our first plant. We expect to make that announcement in September."