SYS-CON MEDIA Authors: Jnan Dash, Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel

News Feed Item

Northern Power Systems Announces Q1 2014 Financial Results

Strong Revenue and Order Growth; Reinvesting in Business Expansion

BARRE, VT--(Marketwired - May 29, 2014) -

First Quarter 2014 Highlights:

  • Expanded quarterly revenues to $13.8 million from $1.7 million in the prior year period; revenue expansion driven by strong order fulfillment supporting demand for the Company's distributed class turbines as well as utility class power converters.
  • Concluded capital raise of $22.3 million in April, supporting strategic plans for global expansion in sales of Northern Power Systems' offerings.
  • Grew backlog to approximately $48 million, an increase of more than 125 percent over the prior year period.
  • Executed follow-on 3.3MW utility class platform development contract with strategic partner WEG Energy, enabling the future development of an expanded licensing platform and direct sales of utility class turbines.

Northern Power Systems Corp. (TSX: NPS), a next generation renewable energy technology company, today announced financial results for the three month period ended March 31, 2014, for its predecessor company Wind Power Holdings, Inc. Northern Power raised $22.3 million and listed its common shares on the Toronto Stock Exchange (TSX) in April 2014 through a transaction with a Canadian capital pool company. These funds effectively enable the company to drive its ongoing growth strategy with investments across its three business lines: Product Sales and Services, Technology Licensing, and Technology Development.

"Our first quarter financial results demonstrated exceptionally strong year-over-year revenue growth and order expansion, particularly in our core distributed class wind turbine business. Our results can be impacted by various seasonal trends and in the first quarter we experienced a stronger than typical expansion," said Troy Patton, president and chief executive officer. "After a record year in 2013 of orders for our distributed class wind turbines, as well as closing key technology licensing contracts, we were pleased to deliver continued strong order momentum supporting our strongest backlog in Company history."

Patton continued, "Completion of our capital raise in April of 2014 will drive continued growth by effectively supporting Northern Power Systems' expanded sales efforts and delivery of improved technology platforms for our customers. Our development of emerging opportunities globally continues to validate the strength and value proposition of our technology."

Consolidated Financial Metrics:

  • Revenue for the first quarter of fiscal year 2014 grew to $13.8 million, a 712 percent increase over revenue of $1.7 million reported in the prior year period.
  • Order backlog at March 31, 2014 was $48.4 million, a 128 percent increase over backlog of $21.2 million at March 31, 2013.
  • Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the first quarter was 8.6 percent, up from a gross margin loss of 9.8 percent in the prior year period.
  • GAAP net loss for the first quarter was $3.1 million, representing an 8.8 percent decrease compared to a $3.4 million loss in the prior year period.
  • Non-GAAP adjusted EBITDA loss for the first quarter was $2.5 million, representing a 13.7 percent decrease compared to a non-GAAP adjusted EBITDA loss of $2.9 million, in the prior year period.
  • Cash used in operations in the first quarter was $2.3 million, representing a 32 percent decrease compared to a $3.4 million usage of cash for operations in the prior year period.
  • Upon closing of the capital raise in April 2014, all of the Company's outstanding convertible notes converted to common shares. After the consummation of the transaction the Company had approximately $0.5 million in outstanding debt and in excess of $20 million of cash and cash equivalents.

About non-GAAP financial measures

To supplement Northern Power Systems' consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), Northern Power Systems has used a non-GAAP financial measure, specifically non-GAAP adjusted EBITDA. Adjusted non-GAAP EBITDA is defined as net income/(loss), excluding share-based compensation expense, amortization of acquisition-related intangibles, depreciation of property, plant and equipment, interest expense, tax charges, and certain other non-cash charges as applicable.

The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on non-GAAP adjusted EBITDA, please see the table captioned "Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA Net Loss" included at the end of this release. The table has more details on the GAAP financial measure that is most directly comparable to non-GAAP adjusted EBITDA and the related reconciliation between these financial measures.

Northern Power Systems' management believes that this non-GAAP financial measure provides meaningful supplemental information in assessing our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results, which could be non-cash charges or discrete cash charges that are infrequent in nature. This non-GAAP financial measure also has facilitated management's internal comparisons to Northern Power Systems' historical performance and our competitors' operating results, as well as reflects measurements which are used by creditors and other third parties in assessing our performance.

The "Condensed Consolidated Statements of Operations" can be viewed on our website: http://www.northernpower.com/nps-q1-2014-financial-results/

About Northern Power Systems

Northern Power Systems designs, manufactures, and sells wind turbines, and provides engineering development services and technology licenses for energy applications, into the global marketplace from its US headquarters and European offices.

  • Northern Power Systems has almost 40 years' experience in technologies and products generating renewable energy.
    
  • Northern Power Systems currently manufactures the NPS™ 60 and NPS™ 100 turbines. With over 5 million run time hours across its global fleet, Northern Power wind turbines provide customers with clean, cost effective, reliable renewable energy.
    
  • Patented next generation permanent magnet/direct drive (PM/DD) technology uses fewer moving parts, delivers higher energy capture, and provides increased reliability due to reduced maintenance and downtime.
    
  • Northern Power Systems offers comprehensive in-house development services, including systems level engineering, advanced drivetrains, power electronics, PM machine design, and remote monitoring systems to the energy industry.
    
  • Some of the world's largest manufacturers license the company's next generation technology and IP for their utility and distributed wind products and markets.

To learn more about Northern Power Systems, please visit www.northernpower.com.

Notice regarding forward-looking statements:

This release includes forward-looking statements regarding Northern Power Systems Corp. and its business, which may include, but is not limited to, anticipated use of proceeds from capital transactions, expansion into new markets, and execution of the company's growth strategy. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of Northern Power Systems Corp. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding the wind power industry, performance and acceptance of the company's products, economic factors, competition, the equity markets generally and many other factors beyond the control of Northern Power Systems Corp. Although Northern Power Systems Corp. has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Northern Power Systems Corp. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

The following files are available for download:

                                                                            
                                                                            
NORTHERN POWER SYSTEMS CORP.                                                
                                                                            
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS      
(unaudited)                                                                 
FOR THE PREDECESSOR COMPANY WIND POWER HOLDINGS, INC.                       
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013                          
 (All amounts in thousands, except share and per share amounts)             
                                                                            
                                                                            
                                               For the three months ended   
                                             March 31, 2014  March 31, 2013 
REVENUE:                                                                    
  Net revenue                                $       13,756  $        1,678 
COSTS OF REVENUE AND OPERATING EXPENSES:                                    
  Cost of revenues                                   12,566           1,844 
  Sales and marketing                                   780             573 
  Research and development                            1,139           1,005 
  General and administrative                          2,176           1,512 
                                             --------------  -------------- 
    Total costs of revenue and operating                                    
     expenses                                        16,661           4,934 
                                             --------------  -------------- 
  Loss from operations                               (2,905)         (3,256)
  Interest expense                                     (240)            (18)
  Other income /(expense)                                35             (84)
                                             --------------  -------------- 
  Loss before provision for income taxes             (3,110)         (3,358)
  Provision for income taxes                             14              26 
                                             --------------  -------------- 
NET LOSS                                     $       (3,124) $       (3,384)
                                             --------------  -------------- 
COMPREHENSIVE LOSS                           $       (3,124) $       (3,384)
                                             ==============  ============== 
                                                                            
Net loss applicable to common stockholders   $       (3,124) $       (4,907)
Net loss per common share                                                   
  Basic and diluted                          $        (0.24) $      (325.57)
Weighted average number of common shares                                    
 outstanding                                                                
  Basic and diluted                              12,840,187          15,072 
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
NORTHERN POWER SYSTEMS CORP.                                                
                                                                            
FOR THE PREDECESSOR COMPANY WIND POWER HOLDINGS, INC.                       
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)                           
AS OF MARCH 31, 2014 AND DECEMBER 31, 2013                                  
(All amounts in thousands)                                                  
                                                                            
                                                March 31,     December 31,  
                                                  2014            2013      
ASSETS                                                                      
                                                                            
CURRENT ASSETS:                                                             
  Cash                                       $        1,996  $        4,534 
  Accounts receivable                                 2,750           1,175 
  Unbilled revenue                                    2,896             786 
  Inventories - net                                  12,432          11,682 
  Other current assets                                2,842           2,808 
                                             --------------  -------------- 
    Total current assets                             22,916          20,985 
  Property, plant and equipment - net                 1,477           1,414 
  Asset held for sale                                 1,300           1,300 
  Intangible assets - net                               463             509 
  Goodwill                                              722             722 
  Other assets                                          744           2,615 
                                             --------------  -------------- 
    Total Assets                                     27,622          27,545 
                                             ==============  ============== 
                                                                            
LIABILITIES AND STOCKHOLDERS' DEFICIENCY                                    
                                                                            
CURRENT LIABILITIES:                                                        
  Current portion of long-term debt          $           93  $          141 
  Senior secured convertible notes                        -          12,107 
  Accounts payable                                    4,339           2,148 
  Accrued expenses                                    3,865           2,158 
  Accrued compensation                                2,590           2,207 
  Other current liabilities                          16,294          18,465 
                                             --------------  -------------- 
    Total current liabilities                        27,181          37,226 
                                             --------------  -------------- 
  Senior secured convertible notes                   12,290               - 
  Deferred revenue, less current portion              1,284           1,163 
  Other long-term liability                             647             558 
                                             --------------  -------------- 
    Total Liabilities                                41,402          38,947 
                                             --------------  -------------- 
STOCKHOLDERS' DEFICIENCY:                                                   
Common stock                                            128             128 
Additional paid-in capital                          140,550         139,804 
Accumulated deficit                                (154,458)       (151,334)
                                             --------------  -------------- 
    Total Stockholders' Deficiency                  (13,780)        (11,402)
                                             --------------  -------------- 
                                                                            
Total Liabilities and Stockholders'                                         
 Deficiency                                  $       27,622  $       27,545 
                                             ==============  ============== 
                                                                            
                                                                            
                                                                            
                                                                            
NORTHERN POWER SYSTEMS CORP.                                                
                                                                            
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)                 
FOR THE PREDECESSOR COMPANY WIND POWER HOLDINGS, INC.                       
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013                          
(All amounts in thousands)                                                  
                                                                            
                                               For the three months ended   
                                             March 31, 2014  March 31, 2013 
OPERATING ACTIVITIES:                                                       
  Net loss                                   $       (3,124) $       (3,384)
Adjustments to reconcile net loss to net                                    
 cash used in operating activities:                                         
  Change in fair value of warrants                        -              63 
  Provision for inventory obsolescence                   93              48 
  Provision for doubtful accounts                       (63)              1 
  Stock-based compensation expense                      148             122 
  Depreciation and amortization                         178             227 
  Noncash restructure charges                             -              50 
  Deferred income taxes                                   3               3 
Changes in operating assets and liabilities:                                
  Accounts receivable and unbilled revenue           (3,622)            (79)
  Other current and noncurrent assets                  (112)            293 
  Inventories                                          (843)         (1,443)
  Accounts payable                                    2,191             (57)
  Accrued expenses                                    2,090             134 
  Other liabilities                                     777             587 
                                             --------------  -------------- 
                                                                            
Net cash used in operating activities                (2,284)         (3,435)
                                             --------------  -------------- 
                                                                            
INVESTING ACTIVITIES:                                                       
  Purchases of property and equipment                  (195)            (53)
                                             --------------  -------------- 
    Net cash used in investing activities              (195)            (53)
                                             --------------  -------------- 
                                                                            
FINANCING ACTIVITIES:                                                       
  Proceeds from borrowings of short-term                                    
   debt                                                   -             750 
  Debt principal payments                               (59)            (30)
                                             --------------  -------------- 
    Net cash (used in) provided by financing                                
     activities                                         (59)            720 
                                             --------------  -------------- 
                                                                            
Change in cash                                       (2,538)         (2,768)
  Cash - Beginning of the Period                      4,534           4,456 
                                             --------------  -------------- 
  Cash - End of the Period                   $        1,996  $        1,688 
                                             ==============  ============== 
                                                                            
                                                                            
                                                                            
                                                                            
NORTHERN POWER SYSTEMS CORP.                                                
                                                                            
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA NET LOSS        
(unaudited)                                                                 
FOR THE PREDECESSOR COMPANY WIND POWER HOLDINGS, INC.                       
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013                          
(All amounts in thousands)                                                  
                                                                            
                                               For the three months ended   
                                             March 31, 2014  March 31, 2013 
                                                                            
NET LOSS                                     $       (3,124) $       (3,384)
Interest expense                                        240              18 
Provision for income taxes                               14              26 
Depreciation and amortization                           178             227 
Stock compensation expense                              148             122 
Fair value of warrants classified as                                        
 liability                                                -              63 
                                             --------------  -------------- 
Non-GAAP adjusted EBITDA net loss            $       (2,544) $       (2,928)
                                             ==============  ============== 

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Mobile commerce traffic is surpassing desktop, yet less than 20% of sales in the U.S. are mobile commerce sales. In his session at 15th Cloud Expo, Dan Franklin, Segment Manager, Commerce, at Verizon Digital Media Services, defined mobile devices and discussed how next generation means simplification. It means taking your digital content and turning it into instantly gratifying experiences.
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...