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