Beacon Power Announces Fourth-Quarter, Fiscal Year 2002 Results.Energy Editors/Business Editors WILMINGTON Wilmington. 1 City (1990 pop. 71,529), seat of New Castle co., NE Del., on the Delaware River and tributary streams, the Christina and the Brandywine; settled 1638, inc. as a city 1832. , Mass.--(BUSINESS WIRE)--March 31, 2003 Beacon Beacon, city (1990 pop. 13,243), Dutchess co., SE N.Y., on the E bank of the Hudson River; settled 1663, inc. in 1913 when Fishkill Landing and Matteawan villages were united. Power Corporation (Nasdaq: BCON BCON Broadcast Cross Connect (AT&T) ), today announced its financial results for the fourth quarter and fiscal year ended December December: see month. 31, 2002. Beacon is a development stage company that designs, develops, configures and offers for sale, power systems that provide highly reliable, high-quality, environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1] , uninterruptible electric power. For the fourth quarter of 2002, Beacon Power reported a net loss of $2.1 million, or ($0.05) per share, compared with a net loss in the fourth quarter of 2001 of $6.5 million, or ($0.15) per share. During the fourth quarter of 2002, Beacon Power invested $0.9 million in R&D, $1.1 million in SG&A and depreciation of $0.2 million. At December 31, 2002, the company had $18.2 million in cash and cash equivalents. The company's working capital was $17.2 million. For the fiscal year ended December 31, 2002, Beacon Power reported a net loss of $20.8 million, or ($0.49) per share, compared with a net loss in 2001 of $26.1 million, or ($0.61) per share. Part of this loss for 2002 includes a non-cash restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $6.5 million, of which $4.3 million represents impaired capital Impaired capital When a company's total capital is less than the par value of all its capital stock. equipment and leasehold improvements Leasehold Improvement Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. , $1.9 million relates to a reserve against future lease payments and related facility costs and $0.3 million relates to severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs. "We have taken significant actions over the last eighteen months to reduce our cash expenditures while we have focused on analyzing markets for our products in terms of their size and growth potential, competitive advantages that our products could provide and probable penetration we could achieve" said Bill Capp, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We are exploring a number of markets and I am particularly excited about the potential for our next generation high-energy high-energy adj. 1. Of or relating to elementary particles with energies exceeding hundreds of thousands of electron volts. 2. Yielding a large amount of energy upon undergoing chemical reaction. 3. Vigorous; dynamic. 25kWh product currently being developed which I believe is well suited for renewable energy Renewable energy utilizes natural resources such as sunlight, wind, tides and geothermal heat, which are naturally replenished. Renewable energy technologies range from solar power, wind power, and hydroelectricity to biomass and biofuels for transportation. uses in both photovoltaic The generation of voltage by a material that is exposed to light in the visible and invisible ranges. See photoelectric and photovoltaic cell. and wind turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. applications. To strengthen our entry into these markets we have purchased the intellectual property assets of Advanced Energy Systems, Inc. (AES), a supplier of inverter (1) A logic gate that converts the input to the opposite state for output. If the input is true, the output is false, and vice versa. An inverter performs the Boolean logic NOT operation. (2) A circuit that converts DC current into AC current. Contrast with rectifier. electronics. To explore strategic opportunities we also have committed to an investment in Evergreen Solar Evergreen Solar, Inc., founded in 1994,[1] develops, manufactures and markets solar power products enabled by its String Ribbon technology that provide environmentally clean electric power throughout the world. , Inc. We believe that we will be able to provide increased reliability and performance in both the photovoltaic and wind turbine markets. We believe that these markets will make purchase decisions with a greater emphasis on life-cycle costs, which will allow us to be competitive with battery-based systems. In addition, we believe that our environmentally friendly products are ideal to introduce to these markets." About Beacon Power Corporation Beacon Power Corporation is a development-stage company which designs, develops, configures, and offers for sale power systems that provide highly reliable, high-quality, uninterruptible electric power. It is best known for its environmentally friendly, flywheel-based systems (employing a flywheel made from proprietary composite materials composite material or composite, any material made from at least two discrete substances, such as concrete. Many materials are produced as composites, such as the fiberglass-reinforced plastics used for automobile bodies and boat hulls, but the ) that can store and deliver energy in a variety of configurations. Such products have longer life, reduced maintenance, quicker recharging, remote monitoring (protocol) remote monitoring - (RMON) A network management protocol that allows network information to be gathered at a single computer. Whereas SNMP gathers network data from a single type of Management Information Base (MIB), RMON 1 defines nine additional MIBs that provide a and other advantages over competing solutions. It now also offers inverter electronics products for sale. For more information, please contact James Spiezio, Chief Financial Officer at Beacon Power Corporation, tel. 978.694.9121; fax 978.694.9127; email spiezio@beaconpower.com,or send mail to 234 Ballardvale Street, Wilmington, MA 01887. Visit Beacon Power on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.beaconpower.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statements under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Material contained in this press release may include statements that are not historical facts and are considered "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. reflect Beacon Power Corporation's current views about future events and financial performances. These forward-looking statements are identified by the use of terms and phrases such as "believe," "expect," "plan," "anticipate," and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from Beacon Power Corporation's expectation. These factors include: a short operating history; a history of losses and anticipated continued losses from operations; a need to raise additional capital combined with a questionable ability to do so; conditions in target markets; no experience manufacturing any product on a commercial basis; no commercial contracts for sales to date; the dependence of sales on the achievement of product development and commercialization milestones; the uncertainty of the political and economic climate of any foreign countries into which Beacon hopes to sell, including the uncertainty of enforcing contracts and the potential substantial fluctuation Fluctuation A price or interest rate change. in currency exchange rates in those countries; significant technological challenges to successfully complete product development; dependence on third-party suppliers; intense competition from companies with greater financial resources; possible government regulation that would impede im·pede tr.v. im·ped·ed, im·ped·ing, im·pedes To retard or obstruct the progress of. See Synonyms at hinder1. [Latin imped the ability to market products; possible product liability claims and the negative publicity which could result; any failure to protect intellectual property; the possible need in the future to hire and retain key executives, particularly in light of the substantial workforce reductions during 2001 and 2002; the recent volatility in the stock price of companies operating in the same sector; the power of controlling shareholders and the limited ability of others to influence the outcome of matters put to the vote of shareholders. These factors are elaborated upon and other factors may be disclosed from time to time in Beacon Power Corporation's filings with the Securities and Exchange Commission. Beacon Power Corporation expressly does not undertake any duty to update forward-looking statements.
Beacon Power Corporation
Consolidated Statement of Operations
Qtr-end Qtr-end Year-to-date Year-to-date
December 31, December 31, December 31, December 31,
2002 2001 2002 2001
------------ ------------ ------------- -------------
Revenue $ - $ - $ - $ -
Cost of goods
sold - - - -
------------ ------------ ------------- -------------
Gross profit - - - -
Operating
expenses:
Selling,
general and
administration 1,076,335 2,751,264 5,636,903 8,939,589
Research and
development 935,012 3,491,026 7,129,880 17,627,714
Depreciation
and
amortization 169,146 420,181 1,644,230 1,323,958
Restructuring
charges - - 2,159,280 -
Loss on
impairment of
assets - - 4,297,128 -
------------ ------------ ------------- -------------
Total
operating
expenses 2,180,493 6,662,471 20,867,421 27,891,261
------------ ------------ ------------- -------------
Loss from
operations (2,180,493) (6,662,471) (20,867,421) (27,891,261)
Other income,
net 79,478 206,733 28,169 1,745,593
------------ ------------ ------------- -------------
Loss to common
shareholders $(2,101,015) $(6,455,738) $(20,839,252) $(26,145,668)
============ ============ ============= =============
Loss per share,
basic and fully
diluted $ (0.05) $ (0.15) $ (0.49) $ (0.61)
============ ============ ============= =============
Average shares
outstanding,
basic and fully
diluted 42,811,667 42,760,695 42,797,072 42,550,502
============ ============ ============= =============
Beacon Power Corporation and Subsidiary
Consolidated Balance Sheets
December 31,
2002 2001
-------------------------
Assets
Current assets:
Cash and cash equivalents $18,221,766 $34,601,585
Prepaid expenses and other current assets 1,775,455 1,131,065
Assets held for sale 53,715 -
-------------------------
Total current assets 20,050,936 35,732,650
Property and equipment, net 562,929 6,188,507
Other assets 291,901 209,796
-------------------------
Total assets $20,905,766 $42,130,953
=========================
Liabilites and Stockholders' Equity
Current liabilities:
Accounts payable $77,326 $911,465
Accrued compensation and benefits 226,623 721,130
Due to related party - 35,532
Other accrued expenses 576,881 941,100
Restructuring reserve 1,749,738 -
Current portion of capital lease obligations 200,041 335,145
-------------------------
Total current liabilities 2,830,609 2,944,372
Capital lease obligations, net of current
portion - 205,352
Stockholders' equity:
Common stock, $.01 par value 428,129 427,709
Deferred stock compensation (18,413) (211,564)
Additional paid-in capital 132,750,525 132,911,256
Accumulated deficit (114,985,424)(94,146,172)
Treasury stock, at cost (99,660) -
-------------------------
Total stockholders' equity 18,075,157 38,981,229
-------------------------
Total liabilities and stockholders' equity $20,905,766 $42,130,953
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