NEWS FOR IMMEDIATE RELEASE
Contact: James Spiezio
Beacon Power Corporation
978-694-9121
spiezio@beaconpower.com
BEACON POWER ANNOUNCES FIRST-QUARTER 2004 RESULTS
AND FILES FORM 10-K/A
Wilmington, MA - May 14, 2004 - Beacon Power Corporation (Nasdaq: BCON), a
development stage company that designs, develops, configures and offers for
sale, sustainable energy storage and power conversion systems that provide
highly reliable, high-quality, environmentally friendly, uninterruptible
electric power, today announced that it has filed its quarterly report on Form
10Q its financial results for the first quarter ended March 31, 2004 and an
amended 2003 Form 10-K on Form 10-K/A with the Securities and Exchange
Commission.
For the first quarter of 2004, the Company reported revenue of $57,408 and
a net loss of $2.1 million, or ($0.05) per share, compared with a net loss in
the first quarter of 2003 of $2.2 million, or ($0.05) per share. During the
first quarter of 2004, the Company incurred costs of $1.0 million in R&D, $1.1
million in SG&A and recorded depreciation of $46,587. At March 31, 2004 the
Company had $7.1 million in cash and cash equivalents. The Company's working
capital was $7.1 million.
The Company also filed a Form 10-K/A to reflect accounting adjustments to
its balance sheet. The balance sheets for the years ending December 31, 2003,
2002 and 2001 were adjusted. The adjustments did not affect the net losses
reported on the Consolidated Statement of Operations and did not have a material
affect on the balance sheet as a whole.
"We are very pleased to report revenue for the first time on sales of our
Smart Power M5 power conversion systems. We are optimistic about the continued
and increasing sales prospects of this product as we continue our installer
certification program along with expanded sales and marketing efforts," said
Bill Capp, president and CEO. "We are also encouraged by the consistent record
of trouble free installations and by repeat orders from distributors.
"In addition to our photovoltaic products, we are excited by the positive
reaction we are receiving to the Smart Energy Matrix product opportunity. Beacon
Power recently became a member of the PJM Regional Transmission Organization as
a step towards providing regulation services. Regulation services are critical
to the stable operation of the North American electrical grid, and reached a
record high market price in 2003. We believe that the Smart Energy Matrix, with
its low operating costs and uniquely fast response can become an important
participant in this critical and growing market."
About Beacon Power Corporation
Beacon Power Corporation designs and develops sustainable energy storage
and power conversion solutions that provide reliable electric power for the
renewable energy, telecommunications, distributed generation and UPS markets.
Beacon's latest product is the Smart Power M5, a 5-kilowatt power conversion
system for grid-connect solar power applications. The Smart Power M5 is a
UL-approved, "all-in-one" power conversion system incorporating multiple
high-performance components in one unit that delivers instantaneous power in the
event of a grid outage. Beacon is also known for its advanced flywheel-based
Smart Energy systems, designed to provide reliable, environmentally friendly
power quality solutions for electric utility transmission and distribution and
other applications.
For more information, please contact James Spiezio, Chief Financial Officer
at Beacon Power Corporation, tel. 978.694.9121; fax 978.694.9127; email
spiezio@beaconpower.com,or send mail to 234 Ballardvale Street, Wilmington, MA
01887. Visit Beacon Power on the Internet at www.beaconpower.com
Safe Harbor Statements under the Private Securities Litigation Reform Act of
1995:
Material contained in this press release may include statements that are not
historical facts and are considered "forward-looking" within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements reflect Beacon Power Corporation's current views about future events
and financial performances. These forward-looking statements are identified by
the use of terms and phrases such as "believe," "expect," "plan," "anticipate,"
and similar expressions identifying forward-looking statements. Investors should
not rely on forward-looking statements because they are subject to a variety of
risks, uncertainties, and other factors that could cause actual results to
differ materially from Beacon Power Corporation's expectation. These factors
include: a short operating history; a history of losses and anticipated
continued losses from operations; a need to raise additional capital combined
with a questionable ability to do so; conditions in target markets; no
experience manufacturing any product on a commercial basis; the company has only
recently entered into the renewable energy market through its inverter products,
and hence, has only limited experience in this sector; the dependence of sales
on the achievement of product development and commercialization milestones; the
uncertainty of the political and economic climate of any foreign countries into
which Beacon hopes to sell, including the uncertainty of enforcing contracts and
the potential substantial fluctuation in currency exchange rates in those
countries; significant technological challenges to successfully complete product
development; dependence on third-party suppliers; intense competition from
companies with greater financial resources; possible government regulation that
would impede the ability to market products; possible product liability claims
and the negative publicity which could result; any failure to protect
intellectual property; the possible need in the future to hire and retain key
executives; the recent volatility in the stock price of companies operating in
the same sector; the power of controlling shareholders and the limited ability
of others to influence the outcome of matters put to the vote of shareholders.
These factors are elaborated upon and other factors may be disclosed from time
to time in Beacon Power Corporation's filings with the Securities and Exchange
Commission. Beacon Power Corporation expressly does not undertake any duty to
update forward-looking statements.
BEACON POWER CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended March 31,
2004 2003
----------- -----------
Revenue .............................. $ 57,408 $ --
Cost of goods sold ................... 75,779 --
----------- -----------
Gross profit ......................... (18,371) --
Operating expenses:
Selling, general and administrative 1,076,262 1,218,648
Research and development .......... 1,048,240 958,907
Depreciation and amortization ..... 46,587 99,689
----------- -----------
Total operating expenses ... 2,171,089 2,277,244
----------- -----------
Loss from operations ................. (2,189,460) (2,277,244)
Other income(expense), net ........... 40,733 47,869
----------- -----------
Loss to common shareholders .......... $(2,148,727) $(2,229,375)
=========== ===========
Loss per share, basic and diluted $ (0.05) $ (0.05)
=========== ===========
Weighted-average common shares
outstanding 43,121,702 42,812,897
=========== ===========
BEACON POWER CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2004 2003
------------- -------------
Assets
Current assets:
Cash and cash equivalents ...................... $ 7,096,242 $ 8,909,261
Accounts receivable, trade ..................... 97,972 128,133
Inventory ...................................... 606,786 238,684
Prepaid expenses and other current assets ...... 594,339 773,226
Investments .................................... 1,187,500 1,163,758
------------- -------------
Total current assets ......................... 9,582,839 11,213,062
Property and equipment, net ..................... 342,940 357,180
Restricted cash ................................. 405,232 405,232
Other assets .................................... 73,060 91,325
------------- -------------
Total assets .................................... $ 10,404,071 $ 12,066,799
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable ............................... $ 365,159 $ 148,075
Accrued compensation and benefits .............. 216,563 156,000
Other accrued expenses ......................... 582,664 664,527
Restructuring reserve .......................... 1,320,305 1,406,191
------------- -------------
Total current liabilities .................... 2,484,691 2,374,793
Stockholders' equity:
Common stock ................................... 431,375 431,075
Deferred stock compensation .................... (451,669) (832,639)
Additional paid-in-capital ..................... 133,791,498 133,796,667
Deficit accumulated during the development stage (125,752,164) (123,603,437)
Less: treasury stock, at cost .................. (99,660) (99,660)
------------- -------------
Total stockholders' equity ................... 7,919,380 9,692,006
Total liabilities and stockholders' equity ...... $ 10,404,071 $ 12,066,799
============= =============