Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

October 23, 2009

 

 

Active Power, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   000-30939   74-2961657

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

2128 W. Braker Lane, BK12

Austin, Texas 78758

(Address of principal executive offices, including zip code)

(512) 836-6464

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On October 23, 2009, Active Power, Inc. issued a press release reporting its preliminary results of operations for its fiscal quarter ended September 30, 2009. A copy of the press release is furnished herewith as Exhibit 99.1.

The information furnished in this Current Report, including under this Item 2.02 and the exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

 

99.1    Press Release of Active Power, Inc. dated October 23, 2009.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  ACTIVE POWER, INC.
Date: October 23, 2009   By:   /S/    JOHN PENVER        
   

John Penver

Chief Financial Officer


EXHIBIT INDEX

 

Exhibit No.

 

Description

99.1   Press Release of Active Power, Inc. dated October 23, 2009.
Press Release

Exhibit 99.1

LOGO

Active Power Reports Third Quarter 2009 Results

Revenues Increase 29% Over Previous Quarter Driven

by Sales of PowerHouse

AUSTIN, Texas (Oct. 23, 2009) – Active Power, Inc. (NASDAQ: ACPW) announced results for its third quarter ended Sept. 30, 2009.

Revenue for the quarter increased 29% to $8.5 million from $6.6 million in the previous quarter and decreased 31% from $12.4 million in the same period last year.

For the nine-month period ended Sept. 30, 2009, revenue decreased 2% to $26.3 million from the same period in 2008.

For the quarter, net loss was $3.0 million, or $0.04 per share compared to a net loss of $3.5 million or $0.06 per share in the previous quarter and a net loss of $4.1 million, or $0.07 per share in the same period a year ago.

The gross profit margin in the third quarter of 2009 was 22%, which was unchanged from the previous quarter. This compares to a gross profit margin of 9% in the third quarter of 2008.

Cash and investments totaled $8.0 million at Sept. 30, 2009, compared to $11.7 million at June 30, 2009. The decrease of $3.7 million during the quarter includes $1.4 million of increased inventory levels.

“We are cautiously optimistic about the improvement in revenue we experienced this quarter,” said Jim Clishem, president and CEO, Active Power. “We are beginning to see customers execute on their infrastructure plans, which is a positive sign for Active Power. In fact, we recorded more than $15 million in bookings since July 2009 including additional orders for PowerHouse. Efforts to broaden our sales channels and propagate messaging around our key product differentiators – energy efficiency, reliability and green – position Active Power as an attractive and compelling alternative to conventional technologies.”


Highlights for Third Quarter 2009

 

   

Increased total revenues by 29% over second quarter of 2009 while maintaining gross margins at 22%

 

   

Revenue from direct channels increased 87% compared to the second quarter of 2009, primarily driven by growth in Europe

 

   

Announced multiple orders in excess of $5 million for PowerHouse product sales

 

   

PowerHouse revenues represented approximately 22% of revenue for the third quarter

 

   

Increased service revenue by 12% compared to the second quarter of 2009, providing both increasing margin contribution and valuable annuity revenue, a benefit of direct sales initiatives

 

   

Received and shipped orders for 56 flywheels to 21 countries, resulting in domestic revenues of 40% versus 60% international

 

   

Reduced quarterly net loss by 28% to $3.0 million from $4.1 million loss in third quarter of 2008 and by 15% from $3.5 million loss in second quarter of 2009

 

   

Secured product listing on The Carbon Trust Energy Technology List which is managed by UK government, providing 100% first year capital allowance on customer’s UPS (uninterruptible power supply) investment against taxable profits – only UPS product currently listed

 

   

Published whitepaper comparing energy efficiency differences among the most common UPS topologies in both the lab setting and actual field tests. Analysis concludes flywheel based UPS technology achieves higher efficiencies as compared to conventional systems across all load factors.

 

   

Secured repeat order from Data Cave, Inc., a U.S. collocation datacenter facility for additional flywheel modules, with a total deployment of 2.4 megawatts of CleanSource UPS systems

Outlook

Active Power expects fourth quarter 2009 revenues to range between $12 million and $15 million and fiscal 2009 revenues to be between $38 million and $41 million.

Conference Call Details

Active Power will host a conference call today, Friday, Oct. 23, 2009, at 11:00 a.m. (ET), to further review third quarter 2009 results. Interested parties can listen via Web cast by clicking here. A replay of the Web cast will be available until Nov. 6, 2009. Investors may access the live broadcast and replay via Active Power’s Web site at www.activepower.com.


About Active Power

Active Power (NASDAQ: ACPW) 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 Power’s flywheel-based UPS systems protect critical operations in data centers, 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 Power’s current expectations of operating results for the third quarter of 2009, its future operating results and customers 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 completion of the accounting close and review of the third quarter financial results and the completion of an audit of the fiscal year 2009 financial results. Specific risks and uncertainties include 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. Please refer to Active Power filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the most recent year ended December 31 and its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed since such year ended, for more information on the risk factors that could cause actual results to differ. 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.

 

Active Power Investor Contact:   Active Power Media Contact:
John Penver   Lee Higgins
Chief Financial Officer   Public Relations Manager
512-744-9234   512-744-9488
jpenver@activepower.com   lhiggins@activepower.com

# # #


ACTIVE POWER, INC.

CONDENSED BALANCE SHEETS

(In thousands)

 

     Sept. 30
2009
    December 31
2008
 
     (unaudited)        

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 8,033      $ 10,468   

Short-term investments in marketable securities

     —          703   

Accounts receivable, net

     7,051        9,450   

Inventories

     8,567        6,689   

Prepaid expenses and other

     421        470   
                

Total current assets

     24,072        27,780   

Property and equipment, net

     3,164        4,492   

Deposits and other

     416        399   
                

Total assets

   $ 27,652      $ 32,671   
                

Liabilities and stockholders’ equity

    

Current liabilities:

    

Accounts payable

   $ 3,239      $ 2,414   

Accrued expenses

     4,488        5,425   

Deferred revenue

     1,409        1,490   

Revolving line of credit

     2,060        2,000   
                

Total current liabilities

     11,196        11,329   

Long-term liabilities

     567        521   

Stockholders’ equity:

    

Common stock

     66        60   

Treasury stock

     (59     (59

Additional paid-in capital

     264,323        260,344   

Accumulated deficit

     (247,636     (238,843

Other accumulated comprehensive income (loss)

     (805     (681
                

Total stockholders’ equity

     15,889        20,821   
                

Total liabilities and stockholders’ equity

   $ 27,652      $ 32,671   
                


ACTIVE POWER, INC.

CONDENSED STATEMENTS OF OPERATIONS

(Thousands, except per share amounts)

(unaudited)

 

     Three
Months Ended
Sept 30,
    Nine
Months Ended
Sept. 30,
 
     2009     2008     2009     2008  

Product revenue

   $ 6,947      $ 10,193      $ 21,863      $ 22,033   

Service and spares revenue

     1,587        2,255        4,444        4,741   
                                

Total revenue

     8,534        12,448        26,307        26,774   

Cost of product revenue

     5,751        9,515        16,874        19,937   

Cost of service and spares revenue

     901        1,810        2,814        3,989   
                                

Total cost of revenue

     6,652        11,325        19,688        23,926   

Gross profit

     1,882        1,123        6,619        2,848   

Operating expenses:

        

Research and development

     1,095        1,197        3,254        3,903   

Selling and marketing

     2,572        2,795        8,562        8,800   

General & administrative

     1,201        1,317        3,517        3,685   
                                

Total operating expenses

     4,868        5,309        15,333        16,388   
                                

Operating loss

     (2,986     (4,186     (8,714     (13,540

Interest income (expense)

     (20     68        (48     322   

Other income (expense)

     46        3        (31     207   
                                

Net loss

   $ (2,960   $ (4,115   $ (8,793   $ (13,011
                                

Net loss per share, basic & diluted

   $ (0.04   $ (0.07   $ (0.14   $ (0.22

Shares used in computing net loss per share, basic & diluted

     66,316        60,124        63,020        60,124   

Comprehensive loss:

        

Net loss

   $ (2,960   $ (4,115   $ (8,793   $ (13,011

Translation loss on subsidiaries in foreign currencies

     (359     (501     (124     (179

Unrealized gain (loss) on investments in marketable securities

     (2     (4     —          (6
                                

Comprehensive loss

   $ (3,321   $ (4,620   $ (8,917   $ (13,196