Austin-based technology company Active Power saw its share price plunge Tuesday after the company reported that its revenue plunged and its losses grew in the first quarter.
Active Power, which produces backup power systems, reported a net loss of $4.1 million, or 18 cents a share, for the quarter ended March 31. That compares to a net loss of $1.6 million, or 7 cents per share, for the same quarter in 2015. Analysts polled by Thomson Reuters had projected a loss of 15 cents per share.
The company also saw its revenue decline, dropping to $5.7 million from $13.1 million for the same quarter last year. Analysts polled by Thomson Reuters had projected revenue of about $10.1 million.
The company said the revenue decline was due to “lower product and service sales.” The company also said it lowered its operating expenses by 18 percent from the same quarter in 2015.
"As we anticipated given the low bookings in the fourth quarter, the first quarter was challenging as product revenue declined significantly," Mark Ascolese, president and CEO of Active Power, said in a written statement. "We believe these results reflect a number of external factors including customer deferment in capital spending and schedule changes to defer delivery due in part to a persistent sluggish economy. Despite these conditions, we improved bookings by 25 percent and backlog by 14 percent while reducing expenses by 24 percent compared to the previous quarter."
Active Power operates a manufacturing facility off West Braker Lane, where it builds backup power systems.
The systems, which are used by customers such as hospitals, data centers and government agencies that need an uninterrupted power supply, employ a flywheel-based technology that stores energy kinetically.
Active Power on Tuesday also made a regulatory filing that would allow it to sell $38.5 million of debt securities. The filing, called a shelf registration statement, allows the company to sell debt with a minimum of administrative preparation.
Active Power’s shares closed Tuesday down by almost half, dropping 49 percent, or 50 cents, to end the trading day at 52 cents per share.
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