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)
April 24, 2012

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:
 
o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
o	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 April 24, 2012, Active Power, Inc. issued a press release reporting its preliminary results of operations for its fiscal quarter ended March 31, 2012. 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 April 24, 2012.	

 

 
 
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:  April 24, 2012	By:	/s/ John Penver	 	
 	 	John Penver
Chief Financial Officer	

 

 
 
EXHIBIT INDEX

Exhibit No.	Description	
99.1	Press Release of Active Power, Inc. dated April 24, 2012.	

Exhibit 99.1

Active Power Reports First Quarter 2012 Results

AUSTIN, Texas (April 24, 2012) – Active Power (NASDAQ: ACPW), manufacturer of continuous power and infrastructure solutions, reported results for its first quarter ended March 31, 2012.

Q1 2012 Highlights

 	·	$19.8 million in quarterly revenue, up 14% from same year-ago quarter, representing a record first quarter and second highest revenue quarter overall	

 	·	47% increase in revenues in the Americas versus same year-ago quarter	
 
 	·	$13.6 million in continuous power and infrastructure solutions revenue, representing 68% of revenue for the quarter	

 	·	$8.2 million or 398% increase in information technology (IT) channel revenues compared to the same year-ago quarter	
 
 	·	Improved gross margin to 27% versus 20% in the previous quarter	

 	·	Appointed Doug Milner as the company’s new president and CEO	
 
 	·	Completed equity financing with existing investors resulting in net proceeds of $9.6 million	
 
Management Commentary

“The company remains focused on the near-term priorities put in place late last year to grow our core UPS business, improve upon execution, and return margins to acceptable levels,” said Doug Milner, president and CEO, Active Power. “These efforts resulted in a substantial improvement in gross margin.”

“Given our unique products and solutions, a marquee customer base, and the support of a growing global market, we believe Active Power remains strongly positioned for further growth,” continued Milner. “However, we see further opportunities to make improvements to the business not only internally, but also how we go to market and engage our customers in the field. We believe our focus on basic fundamentals will also enable us to achieve profitability. While our outlook remains conservative, we believe we are well on track for much improved performance in 2012.”

 

 

Q1 2012 Financial Results

First quarter 2012 revenues were $19.8 million, an increase of $1.5 million, or 8%, from the previous quarter and an increase of $2.5 million, or 14%, from the same year-ago quarter.

Gross margin for the quarter was 27% of revenue compared to 20% in the previous quarter and was unchanged from the same year-ago quarter.

Net loss for the quarter was $1.1 million, or $(0.01) per share. This compares to net loss of $3.3 million, or $(0.04) per share, in the previous quarter and was unchanged from the same year-ago quarter.

Outlook

Active Power expects second quarter 2012 revenues to range between $18 million and $22 million. Second quarter earnings per share is expected to be a loss between $(0.02) to $(0.00) per share. Changes in cash and investments are expected to be minimal and driven by changes in working capital requirements.

Conference Call and Webcast

Active Power will host a conference call today, Tuesday, April 24, 2012, at
4:30 p.m. (ET) to discuss its first quarter 2012 results. Interested parties can dial into the call at the time of the event at (877) 551-8082. For callers outside the United States, please dial (904) 520-5770.

To listen to the live webcast, click here. A replay of the webcast will be available via Active Power’s investor relations site at  http://ir.activepower.com .

About Active Power
Founded in 1992, Active Power (NASDAQ: ACPW) designs and manufactures continuous power solutions and critical backup power systems that enable datacenters and other mission critical operations to remain ‘on’ 24 hours a day, seven days a week. Active Power solutions are intelligently efficient, inherently reliable and economically green, providing environmental benefits and energy and space efficiencies to customers’ financial benefit. The company’s products and solutions are built with pride in Austin, Texas, at a state-of-the-art, ISO 9001:2008 registered manufacturing and test facility. Global customers are served via Austin and three regional operations centers located in the United Kingdom, Germany, and China, supporting the deployment of systems in more than 40 countries. For more information, 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 second quarter of 2012, 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 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. For more information on the risk factors that could cause actual results to differ from these forward looking statements, please refer to Active Power filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2011, and its Current Reports on Form 8-K filed since then. 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.

Investor Contact:	Media Contact:	
Ron Both	Lee Higgins	
Liolios Group, Inc.	Senior Public Relations Manager	
949-574-3860	512-744-9488	
acpw@liolios.com	lhiggins@activepower.com	

 

 
 
ACTIVE POWER, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Thousands, except per share amounts)
(unaudited)

 	 	Three
Months Ended
March 31,	 	
 	 	2012	 	 	2011	 	

Product revenue	 	$	16,406	 	 	$	14,738	 	
Service and other revenue	 	 	 3,392	 	 	 	 2,591	 	
Total revenue	 	 	19,798	 	 	 	17,329	 	
 	 	 	 	 	 	 	 	 	
Cost of product revenue	 	 	11,996	 	 	 	10,522	 	
Cost of service and other revenue	 	 	2,495	 	 	 	2,097	 	
Total cost of goods sold	 	 	14,491	 	 	 	12,619	 	
 	 	 	 	 	 	 	 	 	
Gross profit	 	 	5,307	 	 	 	4,710	 	
 	 	 	 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	
Research and development	 	 	1,288	 	 	 	921	 	
Selling and marketing	 	 	3,547	 	 	 	3,470	 	
General and administrative	 	 	1,544	 	 	 	1,368	 	
Total operating expenses	 	 	6,379	 	 	 	5,759	 	
Operating loss	 	 	(1,072	)	 	 	(1,049	)	
 	 	 	 	 	 	 	 	 	
Interest expense, net	 	 	(114	)	 	 	(33	)	
Other income (expense), net	 	 	39	 	 	 	16	 	
Net loss	 	$	(1,147	)	 	$	(1,066	)	
 	 	 	 	 	 	 	 	 	
Net loss per share, basic & diluted	 	$	(0.01	)	 	$	(0.01	)	
Shares used in computing net loss per share, basic & diluted	 	 	84,829	 	 	 	79,848	 	
 	 	 	 	 	 	 	 	 	
Comprehensive loss:	 	 	 	 	 	 	 	 	
Net loss	 	$	(1,147	)	 	$	(1,066	)	
Translation gain (loss) on subsidiaries in foreign currencies	 	 	36	 	 	 	310	 	
 	 	 	 	 	 	 	 	 	
Comprehensive loss	 	$	(1,111	)	 	$	(756	)	

 

 

ACTIVE POWER, INC.
CONDENSED BALANCE SHEETS
(In thousands)
 
 	 	Mar. 31 2012	 	 	December 31 2011	 	
Assets	 	(unaudited)	 	 	 	 	
 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	
Cash and cash equivalents	 	$	18,042	 	 	$	10,357	 	
Restricted cash	 	 	1,400	 	 	 	389	 	
Accounts receivable, net	 	 	15,609	 	 	 	11,163	 	
Inventories	 	 	8,388	 	 	 	9,439	 	
Prepaid expenses and other	 	 	 913	 	 	 	 414	 	
Total current assets	 	 	44,352	 	 	 	31,762	 	
Property and equipment, net	 	 	3,133	 	 	 	2,861	 	
Deposits and other	 	 	407	 	 	 	404	 	
Total assets	 	$	47,892	 	 	$	35,027	 	
 	 	 	 	 	 	 	 	 	
Liabilities and stockholders' equity	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Accounts payable	 	$	6,139	 	 	$	4,757	 	
Accrued expenses	 	 	4,184	 	 	 	5,351	 	
Deferred revenue	 	 	5,693	 	 	 	2,366	 	
Revolving line of credit	 	 	5,535	 	 	 	5,535	 	
Total current liabilities	 	 	21,551	 	 	 	18,009	 	
 	 	 	 	 	 	 	 	 	
Long-term liabilities	 	 	748	 	 	 	726	 	
Stockholders' equity:	 	 	 	 	 	 	 	 	
Common stock	 	 	95	 	 	 	80	 	
Treasury stock	 	 	(115	)	 	 	(115	)	
Additional paid-in capital	 	 	287,421	 	 	 	277,023	 	
Accumulated deficit	 	 	(262,042	)	 	 	(260,895	)	
Other accumulated comprehensive loss	 	 	234	 	 	 	199	 	
Total stockholders’ equity	 	 	25,593	 	 	 	16,292	 	
Total liabilities and stockholders’ equity	 	$	47,892	 	 	$	35,027	 	

 

 
 
ACTIVE POWER, INC.
SUPPLEMENTAL FINANCIAL DATA
 
 	 	Three Months Ended
Mar. 31,	 	
$’000	 	2012	 	 	2011	 	
Product Revenue:	 	 	 	 	 	 	
UPS products	 	$	4,216	 	 	$	9,315	 	
Continuous Power Solutions	 	 	4,931	 	 	 	4,672	 	
Infrastructure Solutions	 	 	7,259	 	 	 	751	 	
 	 	$	16,406	 	 	$	14,738	 	

Selected Balance Sheet Data: ($’000)	 	Mar. 31, 2012	 	 	Dec. 31, 2011	 	
 	 	 	 	 	 	 	 	 	
Inventory:	 	 	 	 	 	 	 	 	
Raw materials	 	$	5,859	 	 	$	6,493	 	
Work in progress	 	 	2,293	 	 	 	3,085	 	
Finished goods	 	 	1,822	 	 	 	1,680	 	
Less reserves for obsolescence	 	 	(1,586	)	 	 	(1,819	)	
 	 	$	8,388	 	 	$	9,439	 	
 	 	 	 	 	 	 	 	 	
Receivables:	 	 	 	 	 	 	 	 	
Americas	 	$	11,693	 	 	$	7,058	 	
EMEA	 	 	2,495	 	 	 	2,597	 	
Asia	 	 	1,421	 	 	 	1,508	 	
 	 	$	15,609	 	 	$	11,163