Beacon Power Stocks Dip After Fourth-Quarter Results Are Announced

March 27, 2001 by Jeff Shepard

Beacon Power Corp.'s (Wilmington, MA) stocks dipped down to an all-time low of $5-3/16 after the company reported losses in its announcement of its financial results. For the fourth quarter of 2000, Beacon reported a net loss, before preferred stock dividends, of $7.6 million, or $0.39 per share on revenues of $50,000. For the 12 months ended December 31, 2000, the company reported a net loss, before preferred stock dividends, of $17.4 million, or $3.52 per share, on the same revenues of $50,000. On December 31, 2000, Beacon Power had $62.5 million in cash and cash equivalents.

In conjunction with the issuance of its Class D and Class F preferred stock, the company issued warrants to purchase common stock. The estimated fair value of the Class D warrants was $1.3 million; the estimated value of the Class F warrants was $33.0 million. During 2000, the company accrued preferred stock dividends of $35.8 million, including non-cash charges totalling $34.3 million related to the Class D and Class F warrants. Beacon Power's net losses, after preferred stock dividends, for the quarter and for the year were $41.0 million ($2.10 per share), and $53.3 million ($10.77 per share), respectively.

“I am pleased to report that Beacon Power had a successful and productive first quarter as a public company," said William E. Stanton, president and CEO. “After raising $51.3 million through our IPO in the fourth quarter of 2000, we have opened our new headquarters and state-of-the-art manufacturing facility, completed hiring and training our initial production staff, and shipped several of our 2kWh flywheel energy storage systems, our milestone product offering to date. These represent significant advances toward our goal of becoming the worldwide leader in flywheel energy storage solutions and our transition from a development-stage company to a commercial enterprise."