First quarter revenues resulted from the continuing success and delivery of smart grid communications technologies to electric utilities in the US.
“While awaiting the U.S. Department of Energy’s (DOE) finalization of the rules for smart grid stimulus funding, utilities and industry players alike have put large projects on hold,” stated John J. Joyce, president and chief executive officer of Ambient. “Ambient has been using this time to further enhance our smart grid platform and focus on next-generation products, and preparing for the business environment following the DOE’s finalized rules, and availability of matching grants.”
Joyce continued, “We have continued to ship product from orders received in 2008, allowing for the recognition of revenue during the first quarter. Although the gross margins on these shipments have been under pressure due to many reasons, we anticipate that future shipments will allow for gross margins at near industry norms.”
Operations Highlights, First Quarter:
Revenue:
Revenues for the 2009 period were attributable to the sale of equipment, and the company’s element management system, AmbientNMS, and revenue for the 2008 period were attributable to the sale of equipment.
Cost Of Goods Sold:
Cost of goods sold for the three months ended March 31, 2009 was $731,236 compared to $342,870 during the corresponding period in 2008. Cost of goods sold included all direct costs related to the manufacturing of products and consisted primarily of direct material costs. The increase in cost of goods sold during the 2009 period primarily reflects the increase in production to fill orders placed in 2008.
