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Active Power Reports Third Quarter 2010 Results

^{Published on 2010-10-26 05:10:49 - Market Wire}
 

AUSTIN, Texas--([ BUSINESS WIRE ])--Critical backup power systems and continuous power solutions manufacturer Active Power, Inc. (NASDAQ: ACPW) announced results for its third quarter ended Sept. 30, 2010.

"This achievement reflects a tremendous amount of dedication and hard work by our employees and partners. We will continue to focus on profitability and sales momentum a" as we strengthen Active Powera™s position as a major player in the power quality and infrastructure markets."

Q3 2010 Highlights

• Achieved the first quarterly net profit in Active Powera™s 18-year history, recording a net profit of $55,000 during the third quarter of 2010.
• Recognized its highest ever quarterly revenues of $18.5 million, representing an increase of $10 million or 116% over the third quarter of 2009. For the nine months ended Sept. 30, 2010, revenues totaled $45.6 million, an increase of $19.3 million or 73% compared to the same period in 2009. This represents Active Powera™s highest revenues for the first nine months of any fiscal year.
• Achieved 30% gross margin for the third quarter, an increase of 8% from the same quarter of 2009.
• Completed a new $12.5 million revolving line of credit facility to help finance working capital and business growth.
• Recognized $7.4 million in revenue from datacenter infrastructure solutions provided to an IT channel partner, representing a new revenue stream for the company.
• Experienced a 23% increase in direct channel revenues compared to the third quarter of 2009.
• 73% of orders received since the beginning of third quarter were repeat orders from existing customers with the remaining 27% from new customers.
• Shipped 97 flywheels in UPS (uninterruptible power supply) systems at an average selling price of $88,000 per flywheel during the quarter, compared to 56 flywheels shipped in the third quarter of 2009 at an average selling price of $78,000.
• Issued a number of announcements regarding new system orders and recent deployments for mission critical applications in education, healthcare, government and manufacturing and the opening of the companya™s Beijing office.

Q3 2010 Financial Results

Revenues for the third quarter of 2010 were $18.5 million, an increase of 15% from the previous quarter and an increase of 116% from the third quarter of 2009. For the nine months ended Sept. 30, 2010, total revenues were $45.6 million, a 73% increase compared to $26.3 million in same period in 2009.

Gross profit margin for the quarter was 30%, compared to 27% in the previous quarter and 22% in the third quarter of 2009.

Net income for the quarter was $55,000, or 0 cents per share. This compares to a net loss of $1.5 million or 2 cents per share in the previous quarter, and a net loss of $3.0 million or 4 cents per share in the third quarter of 2009. For the nine months ended Sept. 30, 2010, net loss decreased 54% to $4.1 million or 5 cents per share, compared to a net loss of $8.8 million or 14 cents per share in the same period of 2009.

Cash and investments decreased by $1.3 million during the quarter to $14.4 million at Sept. 30, 2010, primarily due to increased use of working capital to fund revenue growth.

Management Commentary

aAchieving our first ever net profit based on record revenues was a major milestone for us,a said Jim Clishem, president and CEO, Active Power. aThis achievement reflects a tremendous amount of dedication and hard work by our employees and partners. We will continue to focus on profitability and sales momentum a" as we strengthen Active Powera™s position as a major player in the power quality and infrastructure markets.

aThis quarter was highlighted by a substantial increase in revenues from our datacenter infrastructure solutions and a number of large repeat orders from our datacenter and technology-centric customers. Quoting activity and interest in our products continues to grow as companies are increasingly focused on solutions that reduce energy costs and floor space requirements, while also improving reliability.a

Outlook

Active Power expects fourth quarter 2010 revenues between $16 million and $19 million and full year 2010 revenues between $62 million and $65 million. Fourth quarter earnings per share is expected to range between breakeven and a loss of 2 cents per share. Changes in cash and investments are expected to be driven by changes in working capital requirements.

Conference Call

Active Power will host a conference call today, Tuesday, Oct. 26, 2010, at 11:00 a.m. (ET) to discuss its third quarter 2010 results. Investors and interested parties can listen live via Webcast [ here ]. A replay of the Webcast will be available until Nov. 9, 2010, via Active Powera™s Web site at [ www.activepower.com ].

About Active Power

Active Power provides efficient, reliable and green critical power solutions and uninterruptible power supply (UPS) systems to enable business continuity in the event of power disturbances. Founded in 1992, Active Powera™s flywheel based UPS systems protect critical operations in datacenters, healthcare facilities, manufacturing plants, broadcast stations and governmental agencies in more than 40 countries. With expert power system engineers and worldwide services and support, Active Power ensures organizations have the power to perform. For more information, please visit [ www.activepower.com ].

Cautionary Note Regarding Forward-Looking Statements:

This release may contain forward-looking statements that involve risks and uncertainties, including statements relating to Active Powera™s current expectations of operating results for the fourth quarter of 2010 and fiscal 2010, its future operating results and customersa™ current intentions. Any forward-looking statements and all other statements that may be made in this news release that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. Factors that could cause the actual results to differ materially from the results predicted include, among others, the deferral or cancellation of sales commitments as a result of general economic conditions or uncertainty, risks related to our international operations, and product performance and quality issues. For more information on the risk factors that could cause actual results to differ from these forward looking statements, please refer to Active Power filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2009 and its Current Reports on Form 8-K filed since such year ended. Active Power assumes no obligation to update any forward-looking statements or information which are in effect as of their respective dates.

Active Power, CleanSource and CoolAir are registered trademarks of Active Power, Inc. The Active Power logo, PowerHouse and PowerCentre are trademarks of Active Power, Inc. All other trademarks are the properties of their respective companies.