Steps Will Reduce Cost Base, Refocus Company
Resources on Key Strategic Areas
NuScale Power Corporation (NuScale or the Company) (NYSE: SMR),
the industry-leading provider of proprietary and innovative
advanced small modular reactor (SMR) nuclear technology, announced
certain strategic actions to better position itself commercially,
financially, and strategically.
“Our U.S. Nuclear Regulatory-approved, industry-leading SMR
technology is already many years ahead of the competition,” said
John Hopkins, NuScale President and Chief Executive Officer.
“Today, commercialization of our SMR technology is our key
objective, which includes near-term deployment and
manufacturing.”
Currently, NuScale is taking steps to transition from R&D to
commercialization and aims to focus resources in key strategic
areas as part of its growth and to strengthen its position going
forward.
These strategic actions reinforce NuScale’s business as the
leading SMR technology provider and align resources with core
priorities, which include advancing revenue-generating projects,
securing new orders and positioning NuScale towards long-term
success. NuScale’s strategic actions are projected to result in
approximately $50-60 million in annualized savings, which includes
a workforce reduction of 154 full-time employees, representing
approximately 28 percent of full-time staff. The Company
anticipates first quarter severance costs to be approximately $3
million.
Hopkins concluded, “We continue to invest in our future,
including work needed for the near-term deployment of our SMR power
plants powered by our 77 MWe NuScale Power Modules™.”
NuScale remains the only technology provider and producer of
small modular nuclear reactors that has obtained U.S. regulatory
approval and is ready for commercial deployment. NuScale is years
ahead of the competition with SMRs currently in production at a
world-class, dedicated manufacturing facility.
NuScale continues to be deeply committed to its mission of
delivering safe, clean, and cost-effective nuclear energy
solutions.
About NuScale Power
NuScale Power Corporation (NYSE: SMR) is the industry-leading
provider of proprietary and innovative advanced small modular
reactor (SMR) nuclear technology, with a mission to help power the
global energy transition by delivering safe, scalable, and reliable
carbon-free energy. The company’s groundbreaking SMR technology is
powered by the NuScale Power Module™, a small, safe, pressurized
water reactor that can each generate 77 megawatts of electricity
(MWe) or 250 megawatts thermal (gross), and can be scaled to meet
customer needs through an array of flexible configurations up to
924 MWe (12 modules) of output.
As the first and only SMR to have its design certified by the
U.S. Nuclear Regulatory Commission, NuScale is well-positioned to
serve diverse customers across the world by supplying nuclear
energy for electrical generation, district heating, desalination,
commercial-scale hydrogen production, and other process heat
applications.
Founded in 2007, NuScale is headquartered in Portland, Ore. To
learn more, visit NuScale Power’s website or follow us on
LinkedIn, Facebook, Instagram, X and
YouTube.
Forward Looking Statements
This release may contain forward-looking statements (including
without limitation statements to the effect that the Company or its
management "will," "believes," "expects," “anticipates,” "plans" or
other similar expressions). These forward-looking statements
include statements relating to strategic and operational plans,
capital deployment, future growth, new awards, backlog, earnings
and the outlook for the company’s business.
Actual results may differ materially as a result of a number of
factors, including, among other things, the severity and duration
of the COVID-19 pandemic and actions by governments, businesses and
individuals in response to the pandemic, including the duration and
severity of economic disruptions; the Company's failure to receive
new contract awards; cost overruns, project delays or other
problems arising from project execution activities, including the
failure to meet cost and schedule estimates; intense competition in
the industries in which we operate; failure of our partners to
perform their obligations; cyber-security breaches; foreign
economic and political uncertainties; client cancellations of, or
scope adjustments to, existing contracts; failure to maintain safe
worksites and international security risks; risks or uncertainties
associated with events outside of our control, including weather
conditions, pandemics, public health crises, political crises or
other catastrophic events; the use of estimates and assumptions in
preparing our financial statements; client delays or defaults in
making payments; the failure of our suppliers, subcontractors and
other third parties to adequately perform services under our
contracts; uncertainties, restrictions and regulations impacting
our government contracts; the inability to hire and retain
qualified personnel; the potential impact of certain tax matters;
possible information technology interruptions; the Company's
ability to secure appropriate insurance; liabilities associated
with the performance of nuclear services; foreign currency risks;
the loss of one or a few clients that account for a significant
portion of the Company's revenues; damage to our reputation;
failure to adequately protect intellectual property rights; asset
impairments; climate change and related environmental issues;
increasing scrutiny with respect to sustainability practices; the
availability of credit and restrictions imposed by credit
facilities for our clients, suppliers, subcontractors or other
partners; failure to obtain favorable results in existing or future
litigation and regulatory proceedings, dispute resolution
proceedings or claims, including claims for additional costs;
failure by us or our employees, agents or partners to comply with
laws; new or changing legal requirements, including those relating
to environmental, health and safety matters; failure to
successfully implement our strategic and operational initiatives;
risks related to provisions of our convertible preferred stock; and
restrictions on possible transactions imposed by our charter
documents and Delaware law. Caution must be exercised in relying on
these and other forward-looking statements. Due to known and
unknown risks, the Company’s results may differ materially from its
expectations and projections.
Additional information concerning these and other factors can be
found in the Company's public periodic filings with the Securities
and Exchange Commission, including the general economic conditions
and other risks, uncertainties and factors (a) set forth in the
section entitled “Risk Factors” and “Cautionary Statement Regarding
Forward-Looking Statements” in the Company’s prospectus dated and
filed with the U.S. Securities and Exchange Commission (“SEC”) on
July 1, 2022, which is part of the registration statement on Form
S-1 declared effective by the SEC on June 30, 2022, in the section
entitled “Risk Factors,” (b) set forth in the section entitled
“Risk Factors” and “Special Note Regarding Forward-Looking
Statements” in the Company’s annual report filed on Form 10-K filed
with the SEC on March 15, 2023, and under similar headings in prior
filings with the SEC, and (c) associated with companies like the
Company that operate in the energy industry. The referenced SEC
filings are available either publicly or upon request from
NuScale's Investor Relations Department at ir@nuscalepower.com. The
Company disclaims any intent or obligation other than as required
by law to update its forward-looking statements in light of new
information or future events.
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version on businesswire.com: https://www.businesswire.com/news/home/20240108917216/en/
Media Contact Chuck Goodnight, Vice President of Sales,
NuScale Power media@nuscalepower.com
Investor Contact Scott Kozak, Director, Investor
Relations, NuScale Power skozak@nuscalepower.com
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