Ambient Corp. today announced its financial results for the year ended December 31, 2010. Annual revenues totaled approximately $20.4 million, with a gross profit of $8.3 million, compared to $2.2 million in revenue and $357,000 in gross profit in 2009.
“We planned for 2010 to be a year of significant growth for Ambient and, despite the fledgling smart grid industry, it did not disappoint, with the addition of 19 new employees and revenue growing to more than $9 million in the fourth quarter,” commented John J. Joyce, President and CEO of Ambient. “In 2010, the Ambient Smart Grid platform was instrumental to the build-out of the smart grid network in the state of Ohio helping to move the smart grid concept from vision to reality. There is still a lot of work to do, and we look to continue the trends in 2011.”
Cost of goods sold for 2010 totaled $12,023,332 compared to $1,836,546 for 2009. These figures include all costs related to manufacturing and consisted primarily of direct material costs. Cost of goods sold also included expenses related to the write down of inventory to the lower of cost or market. The large increase in cost of goods sold during 2010 was caused by the increase in production to fill orders placed by customers.
Gross profits for 2010 were $8,334,708, compared to $356,792 for 2009. The overall gross margins for 2010 increased to 41% compared to 16% during 2009. The increased gross margin is a reflection of the maturing of the company’s product offerings and its enhanced ability to plan production and scale based on increased lead-time and transparency in the forecasting and purchasing process of customers.
A more detailed description of Ambient and its results of operations and financial statements are contained in the Annual Report on Form 10-K filed with the SEC on February 23, 2011.