EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: James Spiezio
Beacon Power Corporation
978-694-9121
spiezio@beaconpower.com
BEACON POWER ANNOUNCES FIRST-QUARTER 2005 RESULTS
Wilmington, MA - May 16, 2005 - Beacon Power Corporation (Nasdaq: BCON), a
company that designs advanced products for electric power and grid voltage and
frequency regulation, today announced its financial results for the first
quarter ended March 31, 2005.
For the first quarter of 2005, Beacon Power reported revenue of $636,000 and a
net loss of $2.2 million, or ($0.05) per share, compared with revenue of $57,000
and a net loss of $2.1 million, or ($0.05) per share, in the first quarter of
2004.
During the first quarter of 2005, Beacon Power incurred costs of $0.5 million in
R&D, $1.2 million in SG&A, recorded a contract loss reserve for its government
contracts of $0.5 million and depreciation of $43,199. At March 31, 2005 the
company had $3.3 million in cash and cash equivalents. The company's working
capital was $2.2 million.
"This quarter we recognized revenue associated with the Smart Energy Matrix
demonstration systems we're building for California and New York," said Bill
Capp, president and CEO. "We continue to make progress towards completion of
these contracts, with the first system expected to ship to California in July.
Representatives from the agencies involved, including the California Energy
Commission, the New York State Energy Research and Development Authority, and
the U.S. Department of Energy, visited Beacon last month to review the projects,
and we believe that they were pleased to see the first upgraded 6kWh flywheel
operating in the Smart Energy Matrix."
"The recent investment commitment of $3 million by Perseus L.L.C. will provide
us with the working capital needed to deliver these demonstration systems," Capp
added. "We believe that the subsequent test results will validate the economic
and performance advantages of Beacon's flywheel technology as it applies to
frequency regulation for the power grid, and we look forward to our first
installation this summer."
On May 13, 2005 the Company received a letter from Nasdaq dated May 13, 2005
indicating that the Company's common stock has not met the $1.00 minimum bid
price requirement for continued listing for the past 30 consecutive business
days and that the Company's common stock is, therefore, subject to delisting
from the Nasdaq SmallCap Market, pursuant to Nasdaq Marketplace Rule 4310(c)(4).
Therefore in accordance with Marketplace Rule 4310(c)(8)(D), the Company will be
provided 180 calendar days, or until November 9, 2005, to regain compliance or
face delisting on November 9, 2005.
"To attain compliance the Company's common stock must close at $1.00 per share
or more for a minimum of ten consecutive business days before November 9, 2005.
In the event that the Company's stock does not meet this requirement, but meets
the requirements for inclusion on the Nasdaq SmallCap Market initial listing
requirements as set forth in Marketplace Rule 4310(c), the Company may be
granted an additional 180 calendar day period to regain compliance," said James
Spiezio, CFO of Beacon Power.
About Beacon Power Corporation
Beacon Power Corporation designs sustainable energy storage and power conversion
solutions that would provide reliable electric power for the utility, renewable
energy, and distributed generation markets. Beacon's Smart Energy Matrix is a
design concept for a megawatt-level, utility-grade flywheel-based energy storage
solution that would provide sustainable power quality services for frequency
regulation, and support the demand for reliable, distributed electrical power.
Beacon is a publicly traded company with its research, development and
manufacturing facility in the U.S. For more information, visit
www.beaconpower.com.
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; limited commercial
contracts for sales to date; little experience managing operations in
geographically dispersed locations; 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 or in which it operates, 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, particularly in light of the substantial workforce
reductions during 2001 and 2002; the recent volatility in the stock price of
companies operating in the same sector; the difficulties that often arise in
integrating operations of companies after a merger or acquisition; 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 BALANCE SHEETS
March 31, December 31,
2005 2004
(unaudited) (audited)
------------- -------------
Assets
Current assets:
Cash and cash equivalents ...................... $ 3,334,595 $ 5,097,188
Accounts receivable, trade ..................... 895 52,105
Inventory ...................................... -- 222,593
Unbilled costs on government contracts ......... 416,705 --
Prepaid expenses and other current assets ...... 599,658 817,396
------------- -------------
Total current assets ........................ 4,351,853 6,189,282
Property and equipment, net ......................... 277,316 258,647
Restricted cash ..................................... 310,011 310,011
Other assets ........................................ 354,484 327,646
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Total assets ........................................ $ 5,293,664 $ 7,085,586
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable ............................... $ 184,947 $ 389,189
Accrued compensation and benefits .............. 196,699 130,609
Other accrued expenses ......................... 466,196 393,569
Accrued contract loss .......................... 320,646 --
Restructuring reserve .......................... 976,758 1,062,644
------------- -------------
Total current liabilities ................... 2,145,246 1,976,011
Stockholders' equity:
Common stock ................................... 437,971 437,888
Deferred stock compensation .................... (435,712) (707,167)
Additional paid-in-capital ..................... 134,424,216 134,411,911
Deficit accumulated during the development stage (131,178,397) (128,933,397)
Less: treasury stock, at cost .................. (99,660) (99,660)
------------- -------------
Total stockholders' equity .................. 3,148,418 5,109,575
Total liabilities and stockholders' equity .......... $ 5,293,664 $ 7,085,586
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BEACON POWER CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three months ended March 31,
2005 2004
------------ ------------
Revenue ................................... 636,134 57,408
Cost of goods sold ........................ 670,507 75,779
------------ ------------
Gross profit .............................. (34,373) (18,371)
Operating expenses:
Selling, general and administrative .. 1,172,379 1,076,262
Research and development ............. 486,238 1,048,240
Loss on sales and contract commitments 547,707 --
Depreciation and amortization ........ 18,191 46,587
------------ ------------
Total operating expenses ....... 2,224,515 2,171,089
------------ ------------
Loss from operations ...................... (2,258,888) (2,189,460)
Other income, net ......................... 13,888 40,733
------------ ------------
Loss to common shareholders ............... $ (2,245,000) $ (2,148,727)
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Loss per share, basic and diluted ......... $ (0.05) $ (0.05)
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Weighted-average common shares outstanding 43,792,791 43,121,702
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