Monday, Beacon Power Corporation (BCON) reported a wider loss in its second quarter compared with last year, reflecting higher expenses for research and development.
The electricity grid services company posted a second-quarter net loss of $5.4 million or $0.06 per share, wider than a net loss of $3.1 million or $0.04 per share in the prior-year quarter.
Revenue for the quarter plunged to $28,000 from $449,000 in the previous year quarter.
Analysts polled by First Call/Thomson Financial expected the company to report a loss of $0.06 per share on revenues of $120 thousands.
During the second quarter of 2008, Beacon Power incurred costs of $3.03 million for research and development expense, a 65% increase compared with $1.82 million in the prior-year quarter.Research and development expense increased primarily due to the expensing of development costs that had been allocated to government contracts in the prior year, increased headcount-related costs, development and design costs for frequency regulation facilities and increased expenses for legal and professional services.
Beacon said it is now entering the production phase and expects to have revenue from frequency regulation late in the fourth quarter of 2008.
As on June 30, 2008, the company said it had $16.7 million in cash and cash equivalents, with working capital of $15.2 million.
For the six-month period, the company reported revenues of $48,000 compared with revenue of $842,000 in the year-ago period.
The company attributed the decrease in revenue to the result of completion of development contracts with California and New York as well as the Department of Energy in 2007.
For the half-year period, net loss stood at $10.72 million or $0.12 per share, versus a net loss of $6.16 million, or $0.09 per share, for the same period last year. The stock ended Monday's regular trading up 2.42% at $1.27, but dropped in after-market trade by 3.15% to $1.23, on the Nasdaq.
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