Investor Alert

Feb. 11, 2013, 12:00 p.m. EST

Active Power to report loss, cuts year view

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By Melodie Warner

Active Power Inc. warned it will post a fourth-quarter loss as it was unable to recognize revenue from a multimillion dollar order.

"While unfortunate, we believe the proper accounting treatment of this transaction was to not recognize the revenue in the fourth quarter based upon changes in the deployment schedule for our products on this particular project," said President and Chief Executive Doug Milner.

Shares dropped 6.4% to $4.55 premarket as the maker of backup-power systems said it now expects to report a loss of two cents to four cents a share on revenue of $14 million to $16 million. Its October guidance was earnings between break-even and two cents a share on revenue of $17 million to $21 million. The stock has climbed 16% over the past year, through Friday's close.

The company also lowered its full-year projection to a loss of 44 cents a share on revenue between $75 million and $77 million, compared with its prior forecast of earnings between break-even and one cent a share on revenue of $78 million to $82 million.

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