Active Power has a market cap of $59.4 million; its shares were traded at around $0.7 with and P/S ratio of 0.8.
Highlight of Business Operations:Our revenue derived from North America was $28.7 million, $47.5 million and $48.6 million in 2009, 2010 and 2011, respectively, representing 71%, 73% and 64%, respectively, of our total revenues. Our revenue derived from customers located in Europe was $9.2 million, $13.0 million and $19.1 million in 2009, 2010 and 2011, respectively, representing 23%, 20% and 25%, respectively, of our total revenues. Our revenue derived from customers located in Asia was $2.4 million, $4.4 million and $7.8 million in 2009, 2010 and 2011, respectively, representing 6%, 7% and 11%, respectively, of our total revenues. We achieved revenue growth in all of our primary markets during 2011. Our largest revenue growth occurred in the European and Asian market, where our revenues increased by $6.1 million or 47% and $3.4 million or 76%, respectively, over 2010. Our growth in Europe and Asia in 2011 was primarily derived from increased sales of our containerized solutions. In North America, our total revenue increased by $1.1 million or 2% over 2010. Our strong growth in CPS and infrastructure products in North America was offset by a decrease in UPS revenue with lower sales volume from both our OEM and direct sales channels.
Our operating losses were $11.0 million, $3.8 million and $6.9 million in 2009, 2010 and 2011, respectively. Our operating losses include non-cash stock based compensation expenses of $1.3 million, $1.1 million and $1.7 million in 2009, 2010 and 2011 respectively. The increase in operating losses was due to the deterioration of our gross margin despite the growth in revenue and from a higher level of operating costs. Our operating costs increased by 14% or $3 million compared to 2010, primarily due to higher headcount costs as we added capabilities and resources as we increased our CPS and infrastructure businesses. We also incurred approximately $1.4 million in costs associated with a change in our Chief Executive Officer and from costs associated with the closure of our sales and support operations in Japan during the fourth quarter of 2011.
The cost of service and other revenue increased by 44% in 2011 while our service and other revenues increased by 38%. As a percentage of service and other revenues, our costs were 77% of revenue in 2011, compared to 74% in 2010. This increase in the cost of service and other revenue was primarily due to lower margins realized in Europe for design, installation and project management on a number of large CPS system sales in 2011. Additionally, we continue to expand our service team to broaden the geographic regions where we have service capability as our total business grows. Operationally, we are challenged to manage the growth of our service organization so that it scales with the growth in total revenues so that we can meet customer requirements without growing our service organization cost structure too rapidly. The utilization of our service personnel will also be affected by the number of PowerHouse and infrastructure solution products implemented in a particular period and in periods where we have a low number of installation projects, our costs as a percentage of revenue would be expected to increase. A large portion of the costs involved in operating our service organization are fixed in nature and we incur approximately $300,000 to $600,000 in unabsorbed overhead each quarter. We continue to work on reducing our service overhead through better utilization of our service employees and cost control measures. This infrastructure also means that we can leverage this investment and grow our service capabilities substantially by adding direct technical labor only as required. We also are developing more experience and expertise in the deployment of our CPS and infrastructure solutions as this business grows, which we believe we can leverage into improved margins and lower costs for us.
North America sales were 73% of our total revenue for 2010, compared to 71% for 2009. In total, our North America sales increased by 66% in 2010 compared to 2009, reflecting the overall growth in the market for our products in total and in particular for our data center infrastructure solutions and the improvement in overall market conditions within the U.S. data center market. Our sales in Europe increased by 42% in 2010 to $13.0 million as we continue to expand our sales force and operations in Germany and the UK in particular. Our sales in Asia increased by 82% in 2010 to $4.4 million, highlighted by stronger PowerHouse sales in China. In August 2010 we opened our first sales office in China as part of our effort to add sales and service capabilities to this market.
The 55% increase in cost of product revenue from 2009 to 2010 was driven by the 69% increase in product revenues that we experienced in 2010, as well as our continuous cost reduction efforts. Cost of product revenue also included $146,000 and $169,000 of stock-based compensation expense in 2010 and 2009, respectively. The cost of product revenue as a percentage of total product revenue was 72% in 2010, as compared to 79% for 2009. This decrease in cost as a percentage of revenue compared to 2009 is due primarily to increased sales volumes, which resulted in more efficient utilization of our manufacturing facility and a lower level of unabsorbed overhead costs.
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