Ambient Corporation (Ambient), a US based smart grid communications technology company, has reported revenues of $12.6 million for the year-end 2008, compared with the revenues of $2.3 million in the previous year-end. It has also reported a gross profit of $2.7 million for the year-end 2008, compared with the gross profit of $458,918 in the previous year-end.

‘This has been a strong year for smart grid initiatives and Ambient Corporation in particular. Our success at both product innovation, and our ability to move quickly from design to delivery is evident by the more than fivefold increase in our revenue in 2008,’ said John J. Joyce, president and chief executive officer of Ambient. ‘We are already working in 2009 to engage with new and existing partners and public utility customers to expand our deployments and further fuel the growth of our Ambient Smart Grid(TM) platform.’

Operations Highlights – Year End:

Revenues:

Revenues for 2008 and 2007 were attributable to sales of equipment, software and related network design and installation services from the new installments that were introduced in 2008 and 2007. The revenues for the year 2008 and 2007 related to sales of equipment totaling $12,136,283 and $2,179,076, respectively. The revenues from the sale of software and related network design and the installation services for the year 2008 and the 2007 period totaled $486,070 and $85,902, respectively.

Cost Of Goods Sold:

The cost of goods sold for the year 2008 was $9,942,009 compared to $1,806,060 for 2007 period. The cost of goods sold included all the costs related to manufacturing and selling products and the services and consisted primarily of direct material costs. The cost of goods sold also incorporated expenses associated to the write down of inventory to lower of cost or market. The increase in the cost of goods sold during the year 2008 reflects increase in production to fill orders placed by electric utilities in the US. For the year 2008, cost of goods sold incorporated an inventory reserve of $50,303 for excess, obsolete, and surplus inventory resulting from the transition from second to third generation technology.

Gross Profit:

The gross profit on hardware sales amounted to $2,194,274 and $386,369 for the year 2008 and 2007, respectively. The increase in the gross profits during the year 2008 reflects the increase in revenues resulting from production to fill orders placed in the year 2008.