Beacon Power Corp. (fka BCONQ)

[ada]

Beacon Power Announces First Quarter 2007 Results


WILMINGTON, Mass., May 03, 2007 (BUSINESS WIRE) -- Beacon Power Corporation (BCON), a company that designs and develops advanced products and services to support more stable, reliable and efficient electricity grid operation, announced its financial results for the first quarter ended March 31, 2007.

For the first quarter of 2007, Beacon Power reported revenue of $393,000 and a net loss of $3,090,000, or ($0.05) per share, compared to revenue of $289,000 and a net loss of $2,822,000, or ($0.05) per share, in the first quarter of 2006.

During the first quarter of 2007, Beacon Power incurred costs of $1,660,000 in research and development expense, compared to $1,061,000 in the first quarter of 2006. Research and development expense increased primarily due to increased expenses for development materials, increased headcount-related expenses resulting from hiring of engineering personnel and other expenses to support the continuation of our flywheel development and design of our initial frequency regulation facility. Selling, general and administrative expense was $1,414,000 during the first quarter of 2007, compared to $1,930,000 in the first quarter of 2005, a reduction of $516,000, or approximately 27%. This reduction is due primarily to lower stock compensation expense, as well as a reduction in legal and professional fees and public company expenses.

At March 31, 2007, the Company had $12.1 million in cash and cash equivalents, with working capital of $10.5 million. On February 15, 2007, the Company raised $10.6 million by selling approximately 11.8 million shares of common stock with associated five year warrants to purchase 5.9 million shares at an exercise price of $1.33 per share. Beacon will use these funds to complete the development of the Smart Energy 25 flywheel and the design of the Smart Energy Matrix(TM) flywheel frequency regulation plant. The Company anticipates having its first megawatt of commercial frequency regulation in service in April 2008.