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WILMINGTON, Mass.--(BUSINESS WIRE)--March 31, 2005--Beacon Power Corporation (Nasdaq: BCON - News), a development stage company that designs advanced products and services to support more reliable electricity grid operation, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2004. ADVERTISEMENT
For the fourth quarter of 2004, the Company reported net income of $0.9 million, or $0.02 per share, compared with a net loss in the fourth quarter of 2003 of $2.5 million, or ($0.06) per share. During the fourth quarter of 2004, the Company had revenue of $0.06 million, cost of good sold of $0.09 million, and gross margin of ($0.03) million. Beacon invested $0.8 million in R&D, $0.9 million in SG&A and recorded depreciation of $0.1 million. The improvement in net income is primarily attributable to a gain on the sale of equity investments of $2.7 million, as the Company sold its investment in common stock and warrants of Evergreen Solar, Inc., lower selling, general and administrative expenses and lower development expenditures.
For the fiscal year ended December 31, 2004, Beacon Power reported a net loss of $5.3 million, or ($0.12) per share, compared with a net loss in 2003 of $8.6 million, or ($0.20) per share. The lower loss in 2004 is primarily attributable to the gain on sale of equity investments in Evergreen Solar, Inc. of $3.6 million. At December 31, 2004, the Company had $5.1 million in cash and cash equivalents. The Company's working capital was $4.2 million.
The Company has identified an application for its Smart Energy Matrix in a well-established market with attractive pricing characteristics. This market is the sale of frequency regulation services for the electrical power grid. Towards this effort, the Company has previously announced that it has been awarded two research and development contracts with the California State Energy Resources Conservation and Development Commission (CEC) and the New York State Energy Research and Development Authority (NYSERDA) for programs demonstrating the feasibility of the Company's flywheel based system for frequency regulation of electricity on the power grid.
The Company's cash and cash equivalents at December 31, 2004, will support its business plan through May of 2005. The Company continues to incur losses, and will require an equity investment to continue as a going concern. Because there is no certainty of Beacon successfully completing the required financing, the Company's independent registered public accounting firm has inserted an explanatory paragraph related to a going concern uncertainty into their Audit Report on the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004. The Company is pursuing various equity investments to alleviate these concerns.
"We believe that the demonstration contracts with CEC and NYSERDA will demonstrate the potential benefits of the Smart Energy(TM) Matrix flywheel systems for frequency regulation of the power grid," said Bill Capp, president and CEO of Beacon Power. "We have engaged an investment banker named Ardour Capital Investments, LLC to advise Beacon Power in raising new equity investment and based on the growing market interest in our products, I am optimistic that we will raise additional capital on a timely basis."
-------------------- "You cannot play them all, so pick good ones and play them well." Posts: 176 | From: San Diego, Ca | Registered: Dec 2004
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Press Release Source: Beacon Power Corporation
Beacon Power Delivers Flywheel-Based Power System to Bechtel Bettis, Inc. Wednesday June 8, 10:37 am ET Company Will Also Speak at IEEE Electric Ship Technologies Symposium in July
WILMINGTON, Mass.--(BUSINESS WIRE)--June 8, 2005-- Beacon Power Corporation (NASDAQ: BCON - News), a company that designs and develops advanced products for electric power and grid voltage and frequency regulation, announced that it has delivered a flywheel-based power system to Bechtel Bettis, Inc., under a contract that it announced in March 2005. The demonstration system, built using a Smart Energy 6 flywheel, is designed to provide a high cycle-life, reliable source of stored energy for a number of potential applications.
ADVERTISEMENT "This system we've delivered to Bechtel Bettis is an example of our strategy to address additional market opportunities beyond our primary business focus of providing advanced technology solutions for electric power systems," said Bill Capp, Beacon Power president and CEO. "We continue to seek ways to leverage Beacon technology as a viable alternative to conventional, non-sustainable energy storage. With this system in the hands of users who will evaluate its performance, we hope to both learn from their feedback and establish ourselves as a capable supplier."
Beacon Power also announced that it will present a paper, co-authored with personnel from the Naval Surface Warfare Center, entitled "Flywheel Energy Storage for Electric Start and an All-Electric Ship," at the IEEE Electric Ship Technologies Symposium in Philadelphia on July 27, 2005. The U.S. Navy's Electric Ship program is focused on development of next-generation vessels that make use of an integrated power system able to support more demanding electrical loads as well as reduce crew size and free up shipboard space. Beacon believes that there may be interest in its flywheel products for such applications because of certain inherent advantages over batteries, including long life, the ability to charge and discharge many thousands of times, the absence of hazardous materials and reduced maintenance requirements.
About Bechtel Bettis, Inc.
-------------------- w i k i s t o c k . c o m Posts: 234 | From: Gainesville, FL | Registered: Feb 2005
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The pps has been running up the past couple trading days on the news of the california contract. Now there is a New York contract being worked out. Sounds like there power storage flywheels are finding a home.
-------------------- w i k i s t o c k . c o m Posts: 234 | From: Gainesville, FL | Registered: Feb 2005
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