Ambient Corporation Reports Results for the Second Quarter of 2013
Ambient Secures Committed Credit Facility
NEWTON, Mass., Aug. 14, 2013 /PRNewswire/ -- Ambient Corporation (NASDAQ: AMBT), provider of a secure, flexible, and scalable smart grid communications and applications platform, today announced financial results for the second quarter ended June 30, 2013.
(Logo: http://photos.prnewswire.com/prnh/20090311/AMBIENTLOGO)
Total revenue for the three months ended June 30, 2013 was approximately $2.0 million, representing a decrease of approximately 80% from approximately $10.0 million for the same period in 2012. Total revenue for the six months ended June 30, 2013 was approximately $7.0 million, representing a decrease of approximately 70% from approximately $23.2 million for the same period in 2012. The decrease in total revenue during the three months and six months ended June 30, 2013, as compared to the same periods in 2012, is attributable primarily to the near-completion by the Company's largest customer of its grid modernization project in Ohio.
Gross margin for the three and six months ended June 30, 2013 was 41% compared to 43% for the three and six months ended June 30, 2012. The decline in gross margin was primarily due to the lower sales volume.
John J. Joyce, President and Chief Executive Officer, stated, "Ambient's June quarter results underscore that our Company's single most important priority is to encourage revenue growth by diversifying the customer base. To that end, we continue to enhance our node technology so that we can expand our serviceable markets and open up additional opportunities where we are working diligently to position ourselves for success as we move into 2014."
Mr. Joyce added, "We recently marked a milestone accomplishment when we announced that, following a successful pilot project, Consolidated Edison contracted with Ambient to provide a solution for interfacing with commercial and industrial meters to collect and transmit data directly to their control center. We are particularly excited about this engagement with ConEd as it represents a different application for Ambient's technology than we have seen with the more than 138,000 nodes already installed and operating in the field these past five years. It is a strong step toward our goal and demonstrates that the significant investment made in 2012, to build and develop our sales and marketing resources, is delivering results."
Net loss for the three and six months ended June 30, 2013 was approximately $4.9 million, or $0.30 per share, and $8.4 million, or $0.50 per share, respectively, compared to net loss of approximately $1.1 million, or $0.07 per share, and $1.3 million, or $0.08 per share, for the same periods in 2012. In the quarter ended June 30, 2013, the Company recorded total restructuring costs of $341,000 primarily representing the cost of severance payments to impacted employees. These restructuring costs were all incurred and paid during the three months ended June 30, 2013. For the six month period ended June 30, 2012, the Company's net loss of $1.3 million included a write-off of deferred finance costs.
Cash and cash equivalents totaled $6.5 million as of June 30, 2013, compared to $13.3 million at December 31, 2012. Total working capital was $4.9 million as of June 30, 2013, compared to $12.1 million at December 31, 2012.
Effective August 12, 2013, Ambient secured a $5.0 million committed credit facility to be provided by Vicis Capital Master Fund, the Company's majority stockholder. Ambient may draw down the facility, as needed, as its cash resources fall below $500,000, until the available line of credit is fully utilized. In return, the Company will issue its senior secured promissory notes bearing an interest rate of 12% and where all outstanding principle and interest are to be repaid in full on June 30, 2014, unless the parties extend the terms of this credit facility by mutual agreement.
About Ambient Corporation
Ambient designs, develops and sells the Ambient Smart Grid® communications and applications 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 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.
Except for historical information, this press release contains statements that may be deemed to be "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These include statements relating to the diversification of our customer base, further development and marketing of our communications platform and cultivating projects with potential customers, among others. 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. 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, which could have a material adverse effect on our operations and future prospects including, but not limited to, continuing compatibility of our platform with new utility applications and requirements, 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; and our anticipated growth strategies. We undertake no obligation to publicly update or revise any forward-looking statements. Further information on the company's risks and uncertainties is available in our filings with the Securities and Exchange Commission.
Ambient, Ambient Smart Grid and AmbientNMS are registered trademarks of Ambient Corporation. Ambient Smart Grid Node and Ambient MicroNode are trademarks of Ambient Corporation.
| AMBIENT CORPORATION |
||||
| June 30, |
December 31, |
|||
| 2013 |
2012 |
|||
| Assets |
||||
| Current assets: |
||||
| Cash and cash equivalents |
$ 6,539 |
$ 13,314 |
||
| Accounts receivable |
46 |
2,287 |
||
| Inventory |
870 |
575 |
||
| Prepaid expenses and other current assets |
307 |
709 |
||
| Total current assets |
7,762 |
16,885 |
||
| Property and equipment, net |
1,268 |
1,444 |
||
| Total assets |
$ 9,030 |
$ 18,329 |
||
| Liabilities and Stockholders' Equity |
||||
| Current liabilities: |
||||
| Accounts payable |
$ 1,585 |
$ 2,842 |
||
| Accrued expenses and other current liabilities |
503 |
1,139 |
||
| Deferred revenue |
727 |
683 |
||
| Accrued warranty |
87 |
126 |
||
| Warrant liability |
- |
3 |
||
| Total current liabilities |
2,902 |
4,793 |
||
| Total liabilities |
$ 2,902 |
$ 4,793 |
||
| 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 shares issued and outstanding |
17 |
17 |
||
| Additional paid-in capital |
241,333 |
240,340 |
||
| Accumulated deficit |
(235,222) |
(226,821) |
||
| Total stockholders' equity |
6,128 |
13,536 |
||
| Total liabilities and stockholders' equity |
$ 9,030 |
$ 18,329 |
||
| AMBIENT CORPORATION |
|||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||
| 2013 |
2012 |
2013 |
2012 |
||||||
| Total revenue |
$ 2,000 |
$ 9,956 |
$ 6,981 |
$ 23,231 |
|||||
| Cost of goods sold |
1,179 |
5,652 |
4,118 |
13,134 |
|||||
| Gross profit |
821 |
4,304 |
2,863 |
10,097 |
|||||
| Operating expenses: |
|||||||||
| Research and development expenses |
3,161 |
3,605 |
6,423 |
6,951 |
|||||
| Selling, general and administrative expenses |
2,291 |
2,116 |
4,559 |
4,244 |
|||||
| Write-off of deferred financing costs |
- |
- |
- |
389 |
|||||
| Restructuring costs |
341 |
- |
341 |
- |
|||||
| Total operating expenses |
5,793 |
5,721 |
11,323 |
11,584 |
|||||
| Operating loss |
(4,972) |
(1,417) |
(8,460) |
(1,487) |
|||||
| Interest income |
3 |
2 |
6 |
4 |
|||||
| Interest expense |
(2) |
- |
(4) |
- |
|||||
| Mark-to-market adjustment of warrant liability |
- |
180 |
3 |
(9) |
|||||
| Other income |
26 |
91 |
55 |
164 |
|||||
| Total other income |
27 |
273 |
60 |
159 |
|||||
| Loss before taxes |
(4,945) |
(1,144) |
(8,400) |
(1,328) |
|||||
| Provision for income taxes |
- |
- |
- |
- |
|||||
| Net loss |
$ (4,945) |
$ (1,144) |
$ (8,400) |
$ (1,328) |
|||||
| Net loss per basic share |
$ (0.30) |
$ (0.07) |
$ (0.50) |
$ (0.08) |
|||||
| Net loss per diluted share |
$ (0.30) |
$ (0.07) |
$ (0.50) |
$ (0.08) |
|||||
| Weighted average shares used in computing basic net loss per share |
16,665 |
16,615 |
16,665 |
16,592 |
|||||
| Weighted average shares used in computing diluted net loss per share |
16,665 |
16,615 |
16,665 |
16,592 |
|||||
SOURCE Ambient Corporation
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