Exhibit 99.1
PRESS RELEASE DATED APRIL 26, 2006
[LOGO OF ACTIVE POWER (R)]
ACTIVE POWER ANNOUNCES FIRST QUARTER RESULTS
AUSTIN, Texas (April 26, 2006) -- Active Power, Inc. (NASDAQ: ACPW) today
announced results for its first quarter ended March 31, 2006. Revenue for the
first quarter of fiscal 2006 was $5.6 million, up 62% from the same period last
year and 8% from the previous quarter.
Net loss for the first quarter of 2006 was $6.0 million, or 12 cents per share,
compared to a net loss of $5.3 million, or 12 cents per share, for the same
period last year and a net loss of $6.8 million, or 14 cents per share in the
fourth quarter of 2005. Net loss for the quarter includes expenses of $857,000
or 2 cents per share for stock-based compensation.
Cash and investments usage for the quarter was $5.0 million, as compared to $4.7
million for the same period last year and $6.4 million for the previous quarter.
Cash and investments at March 31, 2006 were $37.0 million.
"We experienced strong year-over-year growth in our core flywheel business in
Q1, driven in part by increased sales of our megawatt-class UPS" said Joe
Pinkerton, Chairman and CEO of Active Power. "Our recently expanded
international sales team came in ahead of plan and we expect this momentum to
continue over the next several quarters. We are seeing increased demand for our
products in all regions due to new data center construction, as evidenced by two
orders totaling 17 megawatts announced earlier this year. Last month we received
UL certification on our CoolAir(TM) DC product and will begin production of
UL-listed units in May."
Recent Business Highlights:
- ---------------------------
o Shipped eight megawatt-class UPS systems against the 11-megawatt order
from Caterpillar announced at the end of January. These flywheel UPS
systems will be used to protect a large datacenter in the United
States. We believe the remainder of this order will be shipped in the
second quarter.
o Shipped twelve 500 kW DC flywheel systems pursuant to an order from
Eaton Powerware announced in February of this year. These DC flywheel
systems will be used to protect a large datacenter in the United
States.
o Obtained UL certification for our CoolAir DC line of products. CoolAir
DC is the first minute-for-minute alternative to batteries
commercially available to the Uninterruptible Power Supply (UPS)
market. Using thermal energy and breathable room air to provide power,
a single CoolAir DC unit can provide 85kW of power for up to 15
minutes and, simultaneously, produce cool air to mitigate heat buildup
in the protected environment.
o Flywheel unit shipments increased 112% from 43 units, or 11 MW, in Q1
2005 to 91 units, or 23 MW, in Q1 2006. Total flywheel runtime now
exceeds 21 million hours.
o Received an order and shipped a production-level CoolAir DC unit in
April to one of the leading producers of photovoltaic modules in
Europe.
o Shipped UPS systems to protect the runway lights at three large
airports around the world.
Outlook:
- --------
Active Power expects Q2 2006 revenue to be approximately $5.0 to $6.0 million,
and Q2 earnings per share to be a loss of approximately 11 to 13 cents, which
includes approximately 2 cents per share for stock-based compensation expenses.
We expect cash and investments usage in Q2 to be in the range of $5.5 to $6.5
million.
CONFERENCE CALL:
The Company will host a conference call today, Wednesday, April 26, at 11:00
a.m. Eastern Time, to further review the Company's fiscal Q1 results. A replay
of the webcast will be available until May 10th. Investors may access the live
broadcast and replay through our web site: www.activepower.com.
ABOUT ACTIVE POWER:
Active Power, Inc. (www.activepower.com) designs, manufactures and markets
battery-free power quality products that provide the consistent, reliable
electric power required by today's digital economy. An ISO 9001-certified
company, Active Power is the first to commercialize a flywheel energy storage
system, CleanSource(R), that provides a highly reliable, low-cost and non-toxic
replacement for lead-acid batteries used in conventional power quality
installations. Active Power has also recently developed a new battery-free
extended runtime product line (CoolAir(TM)) based on its proprietary thermal and
compressed air storage technology.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
This release may contain forward-looking statements that involve risks and
uncertainties. Among the important factors that could cause actual results to
materially differ from those in the forward-looking statements are: the
potential for significant losses to continue; inability to accurately predict
revenue and budget for expenses for future periods; fluctuations in revenue and
operating results; overall market performance; decreases and/or delays in
capital spending; limited product offerings; inability to expand and integrate
new distribution channels; inability to manage new and existing product
distribution relationships; our dependence on our relationship with
Caterpillar(R); competition; delays in research and development; dependence on
sole or limited source suppliers; inability to increase product sales; inventory
risks; dependence upon key personnel; inability to protect our intellectual
property rights; potential future acquisitions; potential Sarbanes-Oxley Section
404 compliance issues; the volatility of our stock price regardless of our
actual financial performance; and other factors detailed in our filings with the
Securities and Exchange Commission. Additional risks and uncertainties that we
are unaware of or that we currently deem immaterial also may become important
factors that affect us. Active Power expressly disclaims any obligation to
release publicly any updates or revisions to the information contained in this
press release or to update or revise any forward-looking statements to reflect
any changes in expectations, or any change in events or circumstances on which
those statements are based, unless otherwise required by law.
Active Power and our Active Power logo and CleanSource are registered trademarks
of Active Power, Inc. All other trademarks are the properties of their
respective companies.
ACTIVE POWER CONTACTS:
Michael Chibib, Investors, 512.744.9453, mchibib@activepower.com
Derek Jones, Corporate Communications, 512.744.9210, djones@activepower.com
ACTIVE POWER, INC.
CONDENSED AND CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands, except per share amounts)
(unaudited)
THREE MONTHS ENDED
MARCH 31,
----------------------------
2006 2005
------------ ------------
Product revenue $ 5,044 $ 2,931
Service and spares revenue 525 507
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Total revenue 5,569 3,438
Cost of product revenue 5,137 3,245
Cost of service and spares revenue 576 544
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Total cost of revenue 5,713 3,789
Gross Margin (144) (351)
Operating expenses:
Research and development 2,225 2,231
Selling & Marketing 2,659 1,437
General & Administrative 1,494 2,137
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Total operating expenses 6,378 5,805
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Operating loss (6,522) (6,156)
Interest income 394 378
Gain due to change in market value of
investment rights - 493
Other income (expense) 79 (42)
------------ ------------
Net loss $ (6,049) $ (5,327)
============ ============
Net loss per share, basic & diluted $ (0.12) $ (0.12)
Shares used in computing net loss per share,
basic & diluted 49,183 46,085
Comprehensive loss:
Net loss $ (6,049) $ (5,327)
Unrealized gain (loss) on investments in
marketable securities (84) (101)
------------ ------------
Comprehensive loss $ (6,133) $ (5,428)
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ACTIVE POWER, INC.
CONDENSED AND CONSOLIDATED BALANCE SHEETS
(Thousands)
March 31, December 31,
2006 2005
------------ ------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 9,243 $ 7,590
Restricted cash 116 116
Short-term investments in marketable
securities 24,751 31,364
Accounts receivable, net 6,207 5,769
Inventories 4,969 4,242
Prepaid expenses and other 494 596
------------ ------------
Total current assets 45,780 49,677
Property and equipment, net 7,359 7,530
Long-term investments in marketable securities 2,959 2,970
Deposits and other 188 188
------------ ------------
Total assets $ 56,286 $ 60,365
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Liabilities and stockholders' equity
Current liabilities:
$
Accounts payable $ 1,907 2,264
Accrued expenses 3,508 3,780
Deferred revenue 395 205
------------ ------------
Total current liabilities 5,810 6,249
Stockholders' equity:
Common stock 49 49
Treasury stock (5) (5)
Deferred stock compensation - (293)
Additional paid-in capital 237,254 235,147
Accumulated deficit (186,738) (180,689)
Other accumulated comprehensive income (84) (93)
------------ ------------
Total stockholders' equity 50,476 54,116
------------ ------------
Total liabilities and
stockholders' equity $ 56,286 $ 60,365
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