Science & Technology
Science and Technology
Science and Technology 
Tue, November 18, 2008
Mon, November 17, 2008
BOSTON--([ BUSINESS WIRE ])--Ambient Corporation (OTCBB: ABTG) announced today financial results for its third quarter period ended September 30, 2008. Highlights of the quarter include record three-month revenues of $3,639,234 and corresponding nine-month revenues of $4,450,099.
Third quarter revenues primarily resulted from the continuing success and delivery of products and services related to an April 2008 contract to supply one of the largest electric power companies in the United States with proprietary smart grid communications equipment.
Ambient enthusiastically continues to support utilities that share the vision of achieving the long-term goals of a twenty-first century distribution grid, that enables energy efficiencies as well as intelligent consumer choices such as real-time pricing and demand response.
"Our third quarter financial results continue to demonstrate our ability to deliver on our commitments to those utilities committed to addressing the energy crisis and the concerns of the environment," stated John J. Joyce, President and CEO. "We continue to execute according to our operational plan and anticipate a successful completion of our current initiatives. Our quarterly revenues show our ability to address the wide array of specific applications and integration needs facing utilities looking to modernize their infrastructure. Ambient consistently develops technology offerings and features focused on a single fully integrated, two-way communications platform for all utility needs, and we believe our focus and success will drive positive revenue growth for Ambient."
Operations Highlights – Third Quarter:
Revenues - Total revenues for the nine and three-months ended September 30, 2008 were $4,450,099 and $3,639,234 respectively. Revenues for the corresponding periods in 2007 were $1,969,514 and $33,330 respectively. Revenues for the 2008 period were attributable to the sale of equipment and software, related network design, and installation services relating to our most recent purchase order. Revenues for the 2007 period were attributable to the sale of equipment, software, related network design, and installation services that we provided in connection with a purchase order that we received in September 2006.
Cost of Goods Sold and Gross Profit - Cost of goods sold for the nine and three-months ended September 30, 2008, were $3,781,648 and $2,833,148, respectively, compared to $1,493,110 and $80,881 during the corresponding periods in 2007. During the nine and three-months ended September 30, 2008, cost of goods sold included an inventory reserve of $314,810 and $27,989 for excess, obsolete, and surplus inventory resulting from the transition from first to second generation technology. For the nine-months ended September 30, 2008, we had a gross profit of $668,451 compared to a gross profit of $476,404 for the corresponding nine-month period in 2007 and for the three-months ended September 30, 2008 we had a gross profit of $806,086 compared to a gross loss of $47,551 for the corresponding three-month period in 2007. The increase in gross profit for the three-months ended September 30, 2008, was attributable to the accelerated efforts to introduce and commercialize our Ambient Smart Grid™ communications platform, while we began fulfilling our most recent purchase order.Management believes that the Company will fulfill the purchase order by the end of November 2008.
A more 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 14, 2008. Ambient has sustained losses since its inception and expects to incur additional losses for the immediate future requiring the need to raise additional funds.
About Ambient Corporation
Ambient designs, develops and markets Ambient Smart Grid™ communications technologies and equipment. Utilizing proprietary, 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 (OTCBB: 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, changes in economic conditions generally and our market specifically, market acceptance of new products, changes in economic conditions generally and the smart grid market specifically, changes in technology, legislative or regulatory changes that affect us, the availability and sufficiency of working capital, introduction of competing products and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2007, 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, It's Time to Teach an Old Grid New Tricks and AmbientNMS are registered trademarks of Ambient Corporation with the U.S. Patent and Trademark Office.