Beacon Power Announces 3Q 2008 Results
Nov 10, 2008–Beacon Power Corporation (NASDAQ: BCON), a company that designs and develops advanced products and services to support more stable, reliable and efficient electricity grid operation, announced its financial results for the 3Q ended September 30, 2008.
For the 3Q 2008, Beacon Power reported revenue of $4,000 and a net loss of $5,621,000, or ($0.06) per share, compared to revenue of $373,000 and a net loss of $2,814,000, or ($0.04) per share, in the 3Q 2007. For the 9 months ended September 30, 2008, BCON reported revenue of $53,000 and a net loss of $16,340,000, or ($0.18) per share, compared to revenue of $1,215,000 and a net loss of $8,970,000, or ($0.13) per share, for the same period in 2007. The decrease in revenue is the result of completion of scale-power development contracts with energy agencies in California and New York, as well as the U.S. Department of Energy in 2007. BCON is now entering the production phase of its flywheel systems. BCON expects to begin generating revenue from frequency regulation services later this month.
At September 30, 2008, the Company had $10.6 million in cash and cash equivalents with working capital of $6.5 million. Subsequent to the end of the quarter, the Company raised approximately $10.7 million in cash from a combination of a drawdown of a portion of its Mass Development loan and the sale of stock and warrants.
On November 18, 2008, Beacon expects to begin earning commercial revenue from its first megawatt of frequency regulation capacity at its site in Tyngsboro, Massachusetts, under ISO New England’s Alternative Technologies Regulation Pilot Program. Beacon had initially expected to have up to five MW in service as of the end of fiscal 2008. However, in response to uncertainty and volatility in the equity markets, BCON decided both to raise less cash in its October sale of shares and warrants than once anticipated, and to raise additional funds during early 2009. Consequently, it also decided to revise its deployment schedule.
BCON designs, develops and is taking steps to commercialize advanced products and services to support stable, reliable and efficient electricity grid operation. The Company’s primary business strategy is to commercialize its patented flywheel energy storage technology to perform frequency regulation services on the grid.
