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)
July 30, 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 July 30, 2012, Active Power, Inc. issued a press release reporting its preliminary results of operations for its fiscal quarter ended June 30, 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 July 30, 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:  July 30, 2012	By:	 /s/ John Penver	 	
 	 	John Penver	 	
 	 	Chief Financial Officer	 	

 

 
 
EXHIBIT INDEX
 
Exhibit No.	  Description	
99.1	  Press Release of Active Power, Inc. dated July 30, 2012.	

Exhibit 99.1

 
Active Power Reports Second Quarter 2012 Results

Company Achieves Record Quarterly Revenue and Profits
AUSTIN, Texas (July 30, 2012)  – Active Power (NASDAQ: ACPW), manufacturer of continuous power and infrastructure solutions, reported results for its second quarter ended June 30, 2012.

Q2 2012 Highlights

 	·	$21.7 million in quarterly revenue, up 13% from same year-ago quarter, representing a record level of quarterly revenue	
 
 	·	Improved gross margin to a record level of 36%, up from 24% in the same year-ago quarter and 27% in prior quarter	
 
 	·	Achieved net income of $490,000, or $0.01 per share	
 
 	·	61% increase in UPS revenues versus same year-ago quarter	
 
 	·	37% increase in service revenues versus same year-ago quarter	
 
 	·	$9.4 million in infrastructure solutions revenue, representing 43% of revenue for the quarter	
 
 	·	$3.6 million, or 34%, increase in revenue from the U.S. compared to the same year-ago quarter	
 
 	·	Announced two large UPS projects, Parkland Health and Hospital System and one of the largest collocation data center facilities in China	

 

 
 
Management Commentary
“As we have consistently stated, a top priority has been to return our core UPS segment to growth,” said Doug Milner, president and CEO. “Our focus on this part of our business yielded positive results as UPS revenue nearly doubled compared to the previous quarter and we saw better traction for UPS opportunities across all geographies. More importantly, we achieved these results profitably, recording a net income for the quarter.”
 
“In line with our ongoing efforts to improve margins and operational efficiency, we have been evaluating ways to fine tune our fixed cost position. As a result, we have recently executed cost savings measures that we expect to yield annualized savings of about $1.8 million, with a one-time restructuring charge of approximately $350,000 in the third quarter. We believe these prudent measures will ensure we are making appropriate investments for the future while also aligning our overhead to support consistent and profitable growth.”

“For the remainder of 2012, we will continue to focus on our top priorities of increasing sales productivity and growth within our UPS business, market introduction of our new UPS product platform, and lean process initiatives to improve efficiency throughout the company. We believe the results of these efforts will positively impact our financials, particularly in the fourth quarter, and place us in a favorable position to achieve annual profitability in 2012.”

Q2 2012 Financial Results
Second quarter 2012 revenue was $21.7 million, an increase of $1.9 million, or 9%, from the previous quarter and an increase of $2.4 million, or 13%, from the same year-ago quarter. For the six months ended June 30, 2012, revenue of $41.5 million was $4.9 million, or 13%, higher than the comparable period of 2011.

Gross margin for the quarter was 36% of revenue compared to 27% in the previous quarter and 24% in the same year-ago quarter.

Net income for the quarter was $490,000, or about $0.01 per share. This compares to a loss of $1.1 million, or $(0.01) per share, in the previous quarter and a loss of $1.4 million, or $(0.02) per share, in the same year-ago quarter.   For the six-months ended June 30, 2012, net loss was $0.7 million, or $(0.01) per share, compared to a net loss of $2.5 million, or $(0.03) per share in the same period of 2011.

Outlook
Active Power expects third quarter 2012 revenue to range between $17 million and $20 million. Third quarter earnings per share are expected to be a loss between $(0.03) to $(0.01) per share, which includes the effect of our restructuring expenses.

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, Monday, July 30, 2012, at 4:30 p.m. (ET) to discuss its second 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, our dependence on our relationships with Hewlett Packard and Caterpillar, our increased emphasis on larger and more complex system solutions, 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	 	 	 	Six	 	
 	 	 	Months Ended	 	 	 	Months Ended	 	
 	 	 	June 30,	 	 	 	June 30,	 	
 	 	 	2012	 	 	 	2011	 	 	 	2012	 	 	 	2011	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Product revenue	 	$	17,481	 	 	$	16,156	 	 	$	33,887	 	 	$	30,894	 	
Service and other revenue	 	 	4,178	 	 	 	3,059	 	 	 	7,570	 	 	 	5,650	 	
Total revenue	 	 	21,659	 	 	 	19,215	 	 	 	41,457	 	 	 	36,544	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost of product revenue	 	 	11,358	 	 	 	11,991	 	 	 	23,354	 	 	 	22,513	 	
Cost of service and other revenue	 	 	2,529	 	 	 	2,591	 	 	 	5,024	 	 	 	4,688	 	
Total cost of goods sold	 	 	13,887	 	 	 	14,582	 	 	 	28,378	 	 	 	27,201	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	 	 	7,772	 	 	 	4,633	 	 	 	13,079	 	 	 	9,343	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Research and development	 	 	1,432	 	 	 	1,086	 	 	 	2,720	 	 	 	2,007	 	
Selling and marketing	 	 	3,897	 	 	 	3,400	 	 	 	7,444	 	 	 	6,870	 	
General & administrative	 	 	1,940	 	 	 	1,435	 	 	 	3,484	 	 	 	2,803	 	
Total operating expenses	 	 	7,269	 	 	 	5,921	 	 	 	13,648	 	 	 	11,680	 	
Operating income (loss)	 	 	503	 	 	 	(1,288	)	 	 	(569	)	 	 	(2,337	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense, net	 	 	(52	)	 	 	(48	)	 	 	(166	)	 	 	(81	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense), net	 	 	39	 	 	 	(58	)	 	 	78	 	 	 	(42	)	
Net income (loss)	 	$	490	 	 	$	(1,394	)	 	$	(657	)	 	$	(2,460	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic net income (loss) per share	 	$	0.01	 	 	$	(0.02	)	 	$	(0.01	)	 	$	(0.03	)	
Diluted net income (loss) per share	 	$	0.01	 	 	$	(0.02	)	 	$	(0.01	)	 	$	(0.03	)	
Shares used in computing basic net income (loss) per share	 	 	95,470	 	 	 	80,045	 	 	 	90,179	 	 	 	79,934	 	
Shares used in computing diluted net income (loss) per share	 	 	95,965	 	 	 	80,045	 	 	 	90,179	 	 	 	79,934	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive loss:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	$	490	 	 	$	(1,394	)	 	$	(657	)	 	$	(2,460	)	
Translation gain (loss) on subsidiaries in foreign currencies	 	 	(347	)	 	 	299	 	 	 	(311	)	 	 	609	 	
Comprehensive income (loss)	 	$	143	 	 	$	(1,095	)	 	$	(968	)	 	$	(1,851	)	

 

 

ACTIVE POWER, INC.
CONDENSED BALANCE SHEETS
(In thousands)
 
 	 	June 30	 	 	December 31	 	
 	 	2012	 	 	2011	 	
Assets	 	(unaudited)	 	 	 	 	
 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	
Cash and cash equivalents	 	$	14,624	 	 	$	10,357	 	
Restricted cash	 	 	1,380	 	 	 	389	 	
Accounts receivable, net	 	 	17,088	 	 	 	11,163	 	
Inventories	 	 	8,925	 	 	 	9,439	 	
Prepaid expenses and other	 	 	2,317	 	 	 	414	 	
Total current assets	 	 	44,334	 	 	 	31,762	 	
Property and equipment, net	 	 	3,048	 	 	 	2,861	 	
Deposits and other	 	 	405	 	 	 	404	 	
Total assets	 	$	47,787	 	 	$	35,027	 	
 	 	 	 	 	 	 	 	 	
Liabilities and stockholders' equity	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Accounts payable	 	$	7,127	 	 	$	4,757	 	
Accrued expenses	 	 	4,428	 	 	 	5,351	 	
Deferred revenue	 	 	3,722	 	 	 	2,366	 	
Revolving line of credit	 	 	5,535	 	 	 	5,535	 	
Total current liabilities	 	 	20,812	 	 	 	18,009	 	
 	 	 	 	 	 	 	 	 	
Long-term liabilities	 	 	834	 	 	 	726	 	
Stockholders' equity:	 	 	 	 	 	 	 	 	
Common stock	 	 	95	 	 	 	80	 	
Treasury stock	 	 	(125	)	 	 	(115	)	
Additional paid-in capital	 	 	287,835	 	 	 	277,023	 	
Accumulated deficit	 	 	(261,552	)	 	 	(260,895	)	
Other accumulated comprehensive income (loss)	 	 	(112	)	 	 	199	 	
Total stockholders’ equity	 	 	26,141	 	 	 	16,292	 	
Total liabilities and stockholders’ equity	 	$	47,787	 	 	$	35,027