AUSTIN, Texas, Oct. 26 /PRNewswire-FirstCall/ -- Active Power, Inc. (Nasdaq: ACPW - News ) today ... Active Power Announces Thi
AUSTIN, Texas, Oct. 26 /PRNewswire-FirstCall/ -- Active Power, Inc. (Nasdaq: ACPW - News ) today announced results for its third quarter ended September 30, 2005. Revenue for the third quarter of fiscal 2005 was $4.5 million, up 11% from the same period last year and down 3% from the previous quarter.
Net loss for the third quarter of 2005 was $5.2 million, or 11 cents per share, compared to a net loss of $10.9 million, or 26 cents per share, for the same period last year and a net loss of $5.6 million, or 12 cents per share in the second quarter of 2005. The 2004 results included a $4.8 million litigation settlement.
Cash and investments usage for the quarter was $6.8 million, as compared to $5.9 million for the same period last year. This expected increase in cash and investments usage during the quarter is attributed to the settlement of a sales tax audit and the renewal of the Company's director and officer liability insurance. Cash and investments at September 30, 2005 were $48.4 million.
"We achieved positive gross margin in the third quarter due in large part to the continued growth of our direct channel business," said Joe Pinkerton, Chairman and CEO of Active Power. "Orders for our megawatt-class UPS increased sharply last quarter and we expect this segment of our business to expand over the next several quarters. We achieved our 60% cost reduction target for CoolAir(TM) DC and remain on schedule to commercially launch this product at an industry event next month. To that end, we recently engaged 12 manufacturer's representative firms that will focus on selling our CoolAir units in North America."
Active Power expects Q4 2005 revenue to be approximately $4.5 to $5.5 million, and Q4 earnings per share to be a loss of approximately 10 to 12 cents. We expect cash and investments usage in Q4 to be in the range of $4.0 to $5.0 million.
The Company will host a conference call today, Wednesday, October 26, at 11:00 a.m. Eastern Time, to further review the Company's fiscal Q3 results. A replay of the webcast will be available until November 10th. Investors may access the live broadcast and replay through our web site: http://www.activepower.com .
Active Power, Inc. (http://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, 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.
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; 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.
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