ENP Newswire -
Release date- 30072014 -
UPS revenue increased
EMEA sales increased
Booked multiple CleanSource HD UPS (uninterruptible power supply) units for shipment in the U.S. to one of the largest online retail lenders in the country.
Named 2014 Green Environmental UPS Manufacturer of the Year by
Appointed managing director of
Appointed vice president of Manufacturing who brings to
Completed an expanded three-year
Unless otherwise stated, all comparisons are to the period ended
Q2 2014 Financial Results
Revenue in the second quarter of 2014 was
Compared to the first quarter of 2014, product revenues were relatively flat while service revenue declined as the result of decreases in MIS projects. For the six months ended
Gross margin in the second quarter of 2014 was 18.9% compared to 34.3% in the year-ago period and 26.8% in the previous quarter. The decrease in gross margin is primarily related to lower overhead absorption in the factory and service organization. In the second quarter of 2014, less manufactured product was produced resulting in an inventory decline of
Operating expenses in the second quarter of 2014 were
Net loss in the second quarter of 2014 was
The increase in net loss from the previous quarter is primarily due to a decrease in gross margin for the period. The net loss versus net income in the second quarter of 2013 is due to lower revenue and lower gross margin in the period compared to the year-ago results. For the six months ended
Adjusted EBITDA in the second quarter of 2014 was a negative
Cash and cash equivalents totaled
'The second quarter was challenging with overall product revenue down from the second quarter of 2013,' said
'The priorities we laid out in late 2013 have not changed as we work to continue to increase bookings and consistency in order flow. With our new sales organization now in place, we believe we are well positioned to improve sales with a product set that is highly differentiated and delivers tangible performance and economic advantages for customers.'
Founded in 1992,
The company's products and solutions are built with pride in
Non-GAAP Financial Measure
This press release includes information about adjusted EBITDA, which is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles.
Cautionary Note Regarding Forward-Looking Statements
Statements in this press release that relate to future results and events (including statements about our future financial and operating performance such as statements relating to steady progress in our rate of bookings and backlog growth, work to continue to increase bookings and consistency in order flow, and being well positioned to improve sales) are forward-looking statements based on
Actual results and the outcomes of future events could differ materially from those expressed or implied by these forward-looking statements because of a number of risks and uncertainties, including: our history of significant operating losses; our increased emphasis on larger and more complex system solutions and customer concentration; the deferral or cancellation of sales commitments as a result of general economic conditions or uncertainty; financial results that may vary significantly from quarter to quarter; an increase in sales of our MIS products may materially increase the amount of working capital required to fund our operations; risks related to our international operations; our dependence on our relationships with
For more information on the risk factors that could cause actual results to differ from these forward looking statements, please refer to
About Presentation of Adjusted EBITDA
Adjusted EBITDA is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP), and should not be considered as an alternative to net income, operating income or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The company defines adjusted EBITDA as net income (loss) before impairment of long-lived assets, depreciation, interest, and non-cash stock based compensation.
Other companies (including competitors) may define adjusted EBITDA differently. The exclusion of these items should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. These excluded items could have a material impact on earnings.
While management relies primarily on GAAP results, the company presents adjusted EBITDA because management believes it to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in our industry.
Management also uses this information internally as a supplemental measure for forecasting and budgeting. Adjusted EBITDA may not be indicative of the historical operating results of
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