Active Power
(NASDAQ:ACPW) has failed to grow its core business but the business has taken a
big step in the right direction for a full scale turnaround through a
management overhaul. Its shares have been under pressure since 2012 but there
are several catalysts at work that can push its shares higher.
Active
Power (ACPW)
is a small-cap company that designs and develops backup power systems and
provides continuous infrastructure solutions, through its uninterrupted power
supply (UPS) and modular infrastructure solution (MIS) products, to data
centers and other mission critical applications. The 21-year old company, which
trades on the NASDAQ, is headquartered in Austin, Texas and serves the local,
as well as British, German and Chinese markets. Last year, Active Power earned
40% of its revenues from international markets.
The company's
top line growth significantly slowed down in 2012 and finally turned negative
in 2013. Moreover, the management's confusion with its partner in China
exacerbated the situation. As a result, the business's shares have dropped by
14% this year and are now trading just 0.93 times its trailing sales. The
company has made some key changes and there are several catalysts at work that
could translate into a significant upside for shareholders.
Products:
UPS and MIS
Active Power
introduced its patented flywheel-based UPS systems in 1999 and so far, by the
end of September, it has sold more than 3,900 flywheels in UPS systems to
customers located in 57 different countries around the world. The flywheel
based UPS products, which are sold under the brand name CleanSource,
provide higher power efficiencies, higher power densities, greater space
savings and an environmental friendly energy storage solution as compared to
other battery-based conventional UPS products manufactured by its competitors.
These products come with load capabilities of up to ... read full article at
Seeking Alpha.
