Ambient Corporation Announces Third Quarter Financial Results

BOSTON, Nov. 9, 2010 /PRNewswire-FirstCall/ -- Ambient Corporation (OTC Bulletin Board: ABTG) today announced financial results for the third quarter ended September 30, 2010.  The Company posted revenues of approximately $4.9 million for the quarter.  Revenues for the first nine months of the year were approximately $11.2 million. 

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During the third quarter, Ambient announced that it has ramped up manufacturing capacity to meet increasing demand for its products, through its partner Bel Fuse Inc. (Nasdaq: BELFA & BELFB).

"As of September 30th, we have received and accepted firm purchase orders for 51,650 of our smart grid nodes, the Ambient X-3100," stated John J. Joyce, President and CEO of Ambient Corporation. "To continue receiving orders on this scale has been very encouraging and further validates the Company's long held vision of building a robust, IP-based communications platform, supporting multiple communication technologies in a single device – the Ambient X-3100."

Mr. Joyce continued, "We continue to strengthen Ambient's fundamentals enabling us to grow and position the Company for new opportunities."

A detailed description of Ambient's business, our results of operations and financial statements are contained in the Quarterly Report on Form 10-Q filed on November 8, 2010.

Operations Highlights – Third Quarter

REVENUE. Revenues for the nine and three months ended September 30, 2010 were $11,233,949 and $4,975,807 respectively, compared to $918,260 and $61,077 for the corresponding periods in 2009. Revenues for each of the 2010 and 2009 periods were attributable to the sales of Products and software and services to our marquee customer. Revenues for the nine and three months ended September 30, 2010 related to the sales of Products totaled $11,177,368 and $4,956,947, respectively, compared to $871,758 and $48,505 for the corresponding periods in 2009. Revenue from the sale of software and services for the nine and three months ended September 30, 2010 were $56,581 and $18,860, respectively, compared to $46,502 and $12,572 for the corresponding periods in 2009. The increase in revenue during the 2010 periods compared to the corresponding periods in 2009 reflects an increase in delivery of Ambient's X-3100 Product base to fulfill purchase orders received from our marquee customer.

COST OF GOODS SOLD. Cost of goods sold for the nine and three months ended September 30, 2010 were $6,779,743 and $2,997,620, respectively, compared to $935,188 and $178,334 for the corresponding periods in 2009. Cost of goods sold included all costs related to manufacturing and selling Product and consisted primarily of direct material.  Cost of goods sold for the 2010 and 2009 periods included an inventory write down of excess and obsolete inventory. The increase in cost of goods sold during the 2010 periods as compared to the corresponding periods in 2009 reflected the increase in sales and production to fill orders placed by our marquee customer.

GROSS PROFIT. Gross profit for the nine and three months ended September 30, 2010 period were $4,454,206 and $1,978,187 respectively, compared to a loss of $16,928 and $117,257 for the corresponding periods in 2009. The gross profit on Product sales amounted to $4,397,625 and $1,959,327, respectively, for the nine and three month periods ended September 30, 2010, compared to a loss of $63,430 and $129,829 for the corresponding periods in 2009.   Our overall gross margins increased to 40% for each of the nine and three month periods in 2010 compared to a gross loss of 2% and 192% in the corresponding periods in 2009.  The increase in the gross margin percentages in the 2010 periods reflect the introduction of the X-3100 which allowed for a stable production and delivery schedule throughout 2010. The 2009 periods were negatively affected due to low volume pricing from our contract manufacturer and a write down of inventory of excess and obsolete inventory resulting from the transition from second to third generation technology.

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