Ambient Corporation Reports Results for the Full Year 2012

          Ambient Corporation Reports Results for the Full Year 2012

PR Newswire

NEWTON, Mass., March 11, 2013

NEWTON, Mass., March 11, 2013 /PRNewswire/ --Ambient Corporation (NASDAQ:
AMBT), provider of a secure, flexible and scalable smart grid communications
and applications platform, announced today financial results for the year
ended December 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20090311/AMBIENTLOGO )

Total revenue for 2012 was approximately $42.8 million compared to
approximately $62.1 million for the same period in 2011. The decrease in
total revenue was the result of the Company's largest customer's decision to
modify its timelines for installation in the field.

Gross margins for the year ended December 31, 2012, were 42.7% compared to
43.2% for the same period in 2011. The Company attributed the stability of
its gross margins to the commercial scale of production and deployment
achieved over the past two years.

"During fiscal 2012, we continued to make a number of strategic investments to
support our long-term growth. In particular, there are three that will be
crucial to our success in the coming years. In working with our marquee
customer, we further demonstrated the scalability and robustness of our
technology platform," commented President and Chief Executive Officer, John J.
Joyce.

Continued Mr. Joyce, "We successfully broadened our product and application
portfolios with the introduction of the Ambient MicroNode, Ambient MiniNode,
and our AmbientPQM (power quality monitoring) application. Each of these
additions provides customers with added flexibility and capability suited to a
utility's unique requirements. And, we continued to strategically invest
resources in our sales and marketing teams. We are encouraged by the market's
initial interest and acceptance of these enhancements."

Research and development expenses were approximately $14.3million for year
ended December 31, 2012, compared to approximately $11.7million for the same
period in 2011. The increase in research and development was due primarily to
increased personnel and consultant expenses required for the continued
development of the Company's communications nodes, enhancements of the
AmbientNMS^®, and other product development efforts.

Selling, general, and administrative expenses for year ended December 31,
2012, were approximately $9.6million compared to $8.2million for the same
period in 2011. The increase in selling, general, and administrative expenses
was due to an increase in personnel and related costs, and increased efforts
to market and commercialize the Company's communications platform.

Net loss for the year ended December 31, 2012, was approximately $5.4 million,
or $0.33 per share, compared to net income of approximately $10.1 million, or
$0.59 per diluted share, for the same period in 2011. Non-cash expenses
included in net loss totaled approximately $3.5 million during the year ended
December 31, 2012, consisting of depreciation expense, stock-based
compensation expense, and the write-off of deferred finance costs.

Cash and cash equivalents totaled $13.3 million as of December 31, 2012,
compared to $18.0 million at December 31, 2011. Total working capital was
$12.1 million as of December 31, 2012, compared to $14.3 million at December
31, 2011.

About Ambient Corporation
Ambient designs, develops and sells the Ambient Smart Grid^® communications
platform. The Ambient Smart Grid products and services include communications
nodes; a network management system, AmbientNMS^®; integrated applications; and
maintenance and consulting services.Using open standards-based technologies
along with in-depth industry experience, Ambient provides utilities with
solutions for their smart grid initiatives. Headquartered in Newton, MA,
Ambient is a publicly traded company (NASDAQ: AMBT). More information on
Ambient is available at www.ambientcorp.com. 

This press release contains statements about our future and the future of our
industry and markets that are "forward-looking statements" within the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based upon our current expectations,
estimates and projections about our business and our industry and reflect our
beliefs and assumptions based upon information available to us at the date of
this release. These forward-looking statements are not guarantees of future
performance. Our actual results, performance or achievements could differ
materially from those expressed or implied by the forward-looking statements
as a result of a number of factors, which could have a material adverse effect
on our operations and future prospects. These factors include, without
limitation, our ability to retain and attract customers, particularly in light
of our dependence on a single customer for substantially all of our revenue;
our expectations regarding our expenses and revenue, including our
expectations that our research and development expenses and selling, general
and administrative expenses may increase in absolute dollars; anticipated
trends and challenges in our business and the markets in which we operate,
including the market for smart grid technologies; our expectations regarding
competition as more and larger companies enter our markets and as existing
competitors improve or expand their product offerings; our plans for future
products and enhancements of existing products; our anticipated cash needs and
our estimates regarding our capital requirements; our anticipated growth
strategies; and other risks and uncertainties described in our filings with
the Securities and Exchange Commission. We undertake no obligation to publicly
update or revise any forward-looking statements.

Ambient, Ambient Smart Grid and AmbientNMS are registered trademarks of
Ambient Corporation. Ambient MiniNode, Ambient MicroNode and AmbientPQM are
trademarks of Ambient Corporation.

AMBIENT CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

                                       December 31,        December 31,
                                       2012                2011
 Assets
 Current assets:
 Cash and cash equivalents             $     13,314   $     17,965
 Accounts receivable                   2,287               284
 Inventory                             575                 1,460
 Prepaid expenses and other current    709                 527
 assets
 Total current assets                  16,885              20,236
 Property and equipment, net           1,444               1,249
 Deferred finance costs                -                   389
  Total assets                $     18,329   $     21,874
 Liabilities and Stockholders' Equity
 Current liabilities:
 Accounts payable                      $      2,842  $      3,920
 Accrued expenses and other current    1,139               714
 liabilities
 Deferred revenue                      683                 453
 Accrued warranty                      126                 115
 Income taxes payable                  -                   41
 Warrant liability                     3                   671
 Total current liabilities             4,793               5,914
 Non-current liabilities
  Deferred rent                     -                   99
  Total liabilities            $      4,793  $      6,013
 Commitments
 Stockholders' Equity:
 Preferred stock, $0.001 par value;
  5,000,000 authorized, none       -                   -
 issued and outstanding
 Common stock, $0.001 par value;
  100,000,000 shares authorized;
  16,664,553 and 16,567,384 shares
 issued; and
  16,664,553 and 16,557,384 shares   17                  17
 outstanding, respectively
 Additional paid-in capital            240,340             237,421
 Accumulated deficit                   (226,821)           (221,377)
 Less: treasury stock; 0 and 10,000    -                   (200)
 shares at cost
  Total stockholders' equity     13,536              15,861
  Total liabilities and          $     18,329   $     21,874
 stockholders' equity

AMBIENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)

                                             For the Year Ended
                                             December 31,
                                             2012             2011
 Total revenue                               $    42,805  $    62,112
 Cost of goods sold                          24,517           35,274
 Gross profit                                18,288           26,838
 Operating expenses:
 Research and development expenses           14,336           11,665
 Selling, general and administrative         9,656            8,244
 expenses
 Write-off of deferred financing costs       389              -
 Total operating expenses                    24,381           19,909
 Operating (loss) income                    (6,093)          6,929
 Interest income                             198              19
 Interest expense                            (1)              -
 Mark-to-market adjustment of warrant        452              3,306
 liability
 Total other income                         649              3,325
 (Loss) income before taxes                  (5,444)          10,254
 Provision for income taxes                  -                204
 Net (loss) income                          $   (5,444)   $    10,050
 Net (loss) income per basic share          $    (0.33)  $      0.61
 Net (loss) income per diluted share        $    (0.33)  $      0.59
 Weighted average shares used in computing   16,625           16,515
 basic net (loss) income per share
 Weighted average shares used in computing   16,625           16,905
 diluted net (loss) income per share



SOURCE Ambient Corporation

Website: http://www.ambientcorp.com
Contact: Investor Contact, Michael W. McCarthy, mmccarthy@ambientcorp.com,
+1-617-614-6906, or Media Contact, Joanna Hamblin, jhamblin@ambientcorp.com,
+1-617-614-6793