Ambient Corporation Reports Results for the Full Year 2012

Mar 11, 2013, 16:15 ET from Ambient Corporation

NEWTON, Mass., March 11, 2013 /PRNewswire/ -- Ambient Corporation (NASDAQ: AMBT), provider of a secure, flexible and scalable smart grid communications and applications platform, announced today financial results for the year ended December 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20090311/AMBIENTLOGO )

Total revenue for 2012 was approximately $42.8 million compared to approximately $62.1 million for the same period in 2011.  The decrease in total revenue was the result of the Company's largest customer's decision to modify its timelines for installation in the field. 

Gross margins for the year ended December 31, 2012, were 42.7% compared to 43.2% for the same period in 2011.  The Company attributed the stability of its gross margins to the commercial scale of production and deployment achieved over the past two years.

"During fiscal 2012, we continued to make a number of strategic investments to support our long-term growth.  In particular, there are three that will be crucial to our success in the coming years. In working with our marquee customer, we further demonstrated the scalability and robustness of our technology platform," commented President and Chief Executive Officer, John J. Joyce.

Continued Mr. Joyce, "We successfully broadened our product and application portfolios with the introduction of the Ambient MicroNode, Ambient MiniNode, and our AmbientPQM (power quality monitoring) application.  Each of these additions provides customers with added flexibility and capability suited to a utility's unique requirements. And, we continued to strategically invest resources in our sales and marketing teams.  We are encouraged by the market's initial interest and acceptance of these enhancements."

Research and development expenses were approximately $14.3 million for year ended December 31, 2012, compared to approximately $11.7 million for the same period in 2011. The increase in research and development was due primarily to increased personnel and consultant expenses required for the continued development of the Company's communications nodes, enhancements of the AmbientNMS®, and other product development efforts.

Selling, general, and administrative expenses for year ended December 31, 2012, were approximately $9.6 million compared to $8.2 million for the same period in 2011. The increase in selling, general, and administrative expenses was due to an increase in personnel and related costs, and increased efforts to market and commercialize the Company's communications platform.

Net loss for the year ended December 31, 2012, was approximately $5.4 million, or $0.33 per share, compared to net income of approximately $10.1 million, or $0.59 per diluted share, for the same period in 2011.  Non-cash expenses included in net loss totaled approximately $3.5 million during the year ended December 31, 2012, consisting of depreciation expense, stock-based compensation expense, and the write-off of deferred finance costs.

Cash and cash equivalents totaled $13.3 million as of December 31, 2012, compared to $18.0 million at December 31, 2011. Total working capital was $12.1 million as of December 31, 2012, compared to $14.3 million at December 31, 2011.

About Ambient Corporation Ambient designs, develops and sells the Ambient Smart Grid® communications platform. The Ambient Smart Grid products and services include communications nodes; a network management system, AmbientNMS®; integrated applications; and maintenance and consulting services. Using open standards-based technologies along with in-depth industry experience, Ambient provides utilities with solutions for their smart grid initiatives. Headquartered in Newton, MA, Ambient is a publicly traded company (NASDAQ: AMBT). More information on Ambient is available at www.ambientcorp.com.  

This press release contains statements about our future and the future of our industry and markets that are "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry and reflect our beliefs and assumptions based upon information available to us at the date of this release. These forward-looking statements are not guarantees of future performance. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, which could have a material adverse effect on our operations and future prospects.  These factors include, without limitation, our ability to retain and attract customers, particularly in light of our dependence on a single customer for substantially all of our revenue; our expectations regarding our expenses and revenue, including our expectations that our research and development expenses and selling, general and administrative expenses may increase in absolute dollars; anticipated trends and challenges in our business and the markets in which we operate, including the market for smart grid technologies; our expectations regarding competition as more and larger companies enter our markets and as existing competitors improve or expand their product offerings; our plans for future products and enhancements of existing products; our anticipated cash needs and our estimates regarding our capital requirements; our anticipated growth strategies; and other risks and uncertainties described in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements.

Ambient, Ambient Smart Grid and AmbientNMS are registered trademarks of Ambient Corporation. Ambient MiniNode, Ambient MicroNode and AmbientPQM are trademarks of Ambient Corporation.

AMBIENT CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)

December 31,

December 31,

2012

2011

Assets

Current assets:

Cash and cash equivalents

$          13,314

$          17,965

Accounts receivable

2,287

284

Inventory

575

1,460

Prepaid expenses and other current assets

709

527

Total current assets

16,885

20,236

Property and equipment, net

1,444

1,249

Deferred finance costs

-

389

          Total assets

$          18,329

$          21,874

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$            2,842

$            3,920

Accrued expenses and other current liabilities

1,139

714

Deferred revenue

683

453

Accrued warranty

126

115

Income taxes payable

-

41

Warrant liability

3

671

Total current liabilities

4,793

5,914

Non-current liabilities

    Deferred rent

-

99

         Total liabilities

$            4,793

$            6,013

Commitments 

Stockholders' Equity:

Preferred stock, $0.001 par value; 

     5,000,000 authorized, none issued and outstanding

-

-

Common stock, $0.001 par value; 

    100,000,000 shares authorized;

   16,664,553 and 16,567,384 shares issued; and 

   16,664,553 and 16,557,384 shares outstanding, respectively

17

17

Additional paid-in capital

240,340

237,421

Accumulated deficit

(226,821)

(221,377)

Less: treasury stock; 0 and 10,000 shares at cost

-

(200)

       Total stockholders' equity

13,536

15,861

       Total liabilities and stockholders' equity

$          18,329

$          21,874

AMBIENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data)

For the Year Ended December 31,

2012

2011

Total revenue

$        42,805

$        62,112

Cost of goods sold

24,517

35,274

Gross profit

18,288

26,838

Operating expenses:

Research and development expenses

14,336

11,665

Selling, general and administrative expenses

9,656

8,244

Write-off of deferred financing costs

389

-

Total operating expenses

24,381

19,909

Operating (loss) income 

(6,093)

6,929

Interest income

198

19

Interest expense

(1)

-

Mark-to-market adjustment of warrant liability

452

3,306

Total other income 

649

3,325

(Loss) income before taxes

(5,444)

10,254

Provision for income taxes

-

204

Net (loss) income 

$      (5,444)

$       10,050

Net (loss) income per basic share 

$        (0.33)

$           0.61

Net (loss) income per diluted share 

$        (0.33)

$           0.59

Weighted average shares used in computing basic net (loss) income per share

16,625

16,515

Weighted average shares used in computing diluted net (loss) income per share

16,625

16,905

 

SOURCE Ambient Corporation



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