WEB NEWS Comments & Business Outlook
First Quarter 2013 Results
Revenue in the first quarter of 2013 was $18.6 million compared to $15.2 million in the previous quarter and $19.8 million in the first quarter of 2012.
Net loss in the first quarter was $0.3 million or $(0.01) per share. compared to a loss of $0.4 million or $(0.02) per share in the previous quarter and a loss of $1.1 million or $(0.07) per share in the first quarter of 2012.
Management Commentary "Our first quarter results reflect our focus on the 2013 priorities laid out at the beginning of the year, particularly in the growth of core power systems sales," said Doug Milner, president and CEO, at Active Power. "We also broadened our market reach in Asia with the addition of Digital China as one of our strategic distribution partners. We have already engaged with Digital China on large data center projects for which we anticipate field product deployments later this year."
"We are pleased with the improvement in our gross margin compared to the first quarter of 2012 which reflects a more favorable overall product mix and cost containment efforts."
"Moving ahead, we plan to leverage our products' unmatched power density, reliability, and total cost of ownership to build on the steady growth of our CleanSource UPS and CleanSource® High Density UPS product lines. We will also accelerate growth of our modular infrastructure solutions supported by our new PowerHouse products. We believe these highly differentiated products coupled with a rapidly expanding data center market places us in a favorable position to compete and to grow the business profitably."
Outlook
$19 million and $22 million. Second quarter earnings per share is expected to be between $(0.02) and $0.03 per share.
Changes in cash and investments in the second quarter are expected to be minimal and driven by changes in working capital requirements.
Joint Venture
AUSTIN, TX--(Marketwired - Apr 30, 2013 ) - As a strategic part of its growth moving forward and to expand its distribution of products into the China market, Active Power (NASDAQ : ACPW), manufacturer of uninterruptible power supply (UPS) systems and modular infrastructure solutions, has entered into a partnership agreement with Digital China Information Service Company Limited (DCITS), China's No. 1 IT solutions distribution and system integration firm. DCITS is a subsidiary of Digital China Holdings Limited (HK00861), a Fortune China 100 company.
Under the new agreement, DCITS will market and sell Active Power's CleanSource® UPS and CleanSource® High Density UPS products and PowerHouse™ products through its field sales offices in 19 of 22 mainland provinces in China as well as key geographies in the greater Asian market. The partnership also provides for joint sales and marketing and technical support.
"We continue to see significant growth occurring in the China data center market which is driving an increased investment in physical infrastructure sales," said Eddie Yan, vice president, Solutions Group, DCITS. "With this growth, we see tremendous opportunity for Active Power's highly differentiated product line and believe these offerings will be compelling for our IT customer base. We are excited to take part in extending Active Power to customers as part of our portfolio of data center solutions."
"We are excited and proud to have the largest IT solutions provider in China partner with us to further extend our reach in the region and build upon the success we've had with some of China's leading innovators in data center design," said Doug Milner, president and CEO, at Active Power. "Having a leading firm like DCITS, with its extensive IT experience and strong business relationships, join us as one of our China based partners further validates our product offerings and value proposition of unmatched power density, reliability, and total cost of ownership."
Dilutive Securities
AUSTIN, TX--(Marketwired - Apr 30, 2013 ) - Active Power (NASDAQ : ACPW) (the "Company"), manufacturer of uninterruptible power supply (UPS) systems and modular infrastructure solutions, announced today that it has filed a universal shelf registration statement on Form S-3 with the Securities and Exchange Commission (the "SEC"). The shelf registration statement is designed to provide the Company with greater flexibility to take advantage of financing and other business opportunities when and if such opportunities arise, subject to market conditions and the capital requirements of the Company.
If and when the shelf registration statement is declared effective, it will permit the Company, from time to time, to offer and sell up to $50.0 million of common stock, preferred stock, depository shares, warrants, debt securities, units comprised of any such securities, or any combination thereof in one or more future public offerings. The actual amount and type of securities and the terms of those securities will be determined at the time of sale, if such sale occurs. At the present time, the Company has no specific use of proceeds or plans to offer any of the securities covered by the registration statement.
A registration statement relating to the securities listed in the shelf registration statement has been filed with the SEC, but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
