Ambient Corporation Announces First Quarter Financial Results

BOSTON, May 18 /PRNewswire-FirstCall/ -- Reporting increased revenues for the quarter and the elimination of its convertible debt, Ambient Corporation (OTC Bulletin Board: ABTG) filed its Form 10-Q on May 17, 2010, for the period ending March 31, 2010.  Revenues for the first quarter were $1,683,925, representing a doubling of its revenue over the same quarter last year.

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The quarterly report on Form 10-Q also reflects a substantial improvement to the company's current ratio and a backlog of orders totaling an additional $6.9 million in revenues it expects to realize this year.  

"The beginning of 2010 is showing a significant improvement in both revenues and our capital position as we simplify and strengthen our balance sheet and enhance our liquidity," said John J. Joyce, President and CEO of Ambient Corporation. "After just our first quarter, with current booked revenues and our order backlog, we're already on pace to exceed our sales from all of last year."

Operations Highlights – First Quarter

REVENUE: Revenues for the three months ended March 31, 2010, were $1,683,925 compared to $826,593 for the corresponding period in 2009. Revenues for each of the 2010 and 2009 periods were attributable to the sales of products and software and services to Ambient's marquee customer. Revenues for the 2010 and 2009 periods related to the sales of products totaled $1,665,065 and $792,663 respectively. The increase in revenue during the 2010 period reflects an increase in delivery of Ambient's X-3100 product base to fulfill purchase orders received from the customer.

To date, we have received purchase orders for approximately $11.7 million for our X-3100 product. We intend to fulfill the remainder of these purchase orders by the end of the third quarter of 2010. As of May 17, 2010, we have recorded revenue of approximately $4.8 million from such orders.

COST OF GOODS SOLD: Cost of goods sold for the three months ended March 31, 2010, was $1,141,038 compared to $731,236 during the corresponding period in 2009. Cost of goods sold included all direct costs related to manufacturing of product and consisted primarily of direct material. Cost of goods sold for the 2010 period included the write down of excess and obsolete inventory while the 2009 period included expenses related to excess and obsolete inventory and write down of inventory to the lower cost to market. The increase in cost of goods sold during the 2010 period reflected the increase in production to fill purchase orders placed by Ambient's customer.

GROSS PROFIT: Gross profit for the three months ended March 31, 2010 period was $542,877 compared to $95,357 for the corresponding period in 2009. The gross profit on product sales amounted to $524,016 during the 2010 period compared to $61,427 in the 2009 period.   Our overall gross margins also increased from 12% in 2009 to 32% in 2010. The increase in gross margin percentage in the 2010 period as compared to the 2009 period was due to a number of factors including improved cost controls, and the introduction of the X-3100 product.  In addition, the 2009 period was negatively affected by changes made to the product, which affected the associated cost to our X-3000 product.

A detailed description of Ambient Corporation's business, its results of operations and financial statements is contained in the Quarterly Report on Form 10-Q for the three months ended March 31, 2010 filed on May 17, 2010.  

About Ambient Corporation

Ambient designs, develops and markets Ambient Smart Grid® communications technologies and equipment. Using open standards-based technologies along with in-depth industry experience, Ambient provides utilities with solutions for creating smart grid communication platforms and technologies. Headquartered in Newton, MA, Ambient is a publicly traded company (OTC Bulletin Board: ABTG). More information on Ambient is available at www.ambientcorp.com.

This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry, and that reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. 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, including but not limited to, our dependence on one key customer, our ability to raise additional capital when needed, the sufficiency of working capital, the timing and delivery of purchase orders and receipt of payment in respect thereof, the risk of market acceptance of new products and underlying technologies, the competitive market generally and in the smart grid market specifically, the success of our collaborative arrangements, changes in economic conditions generally and the smart grid market specifically, changes in technology, legislative or regulatory changes that affect us, and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2009, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.

Ambient, Ambient Smart Grid, Communications for a Smarter Grid and AmbientNMS are registered trademarks of Ambient Corporation with the U.S. Patent and Trademark Office.

SOURCE Ambient Corporation