SatCon Technology Corporation� (NASDAQ CM: SATC), a developer and
supplier of power management and system architecture solutions for
the alternative energy and distributed power markets, today
announced its operating results for the quarter ended March 31,
2007. Revenues for the quarter ended March 31, 2007 were $8.3
million compared with $7.6 million in the first quarter of 2006, an
increase of 9%. More importantly, revenues in stationary power
systems increased by 57% to $3.6 million for the quarter compared
to $2.3 million in the first quarter of 2006. Driving that growth
were increases in solar inverter revenues of over 220% to $3.2
million compared to $1.0 million in 2006. In addition, technology
development revenue recorded growth of over 98% to $1.8 million
from $0.9 million. This revenue growth in solar inverters and power
technology development reflects the results of the company�s effort
to focus on products targeted at the alternative energy and
distributed power markets. This trend can be seen in the
quarter-end order backlog as well. Defined as firm purchase orders
from customers for future delivery, the order backlog has not only
increased over 56% to over $39 million at the end of the first
quarter, up from $25 million at the end of the first quarter in
2006, but it has increased across all product lines. Stationary
power systems increased over 100% to $17.8 million, technology and
product development orders increased over 67% to $8.5 million, and
the electronics business experienced a 12% increase to over $7
million. As of the end of April 2007, the sales order backlog
topped $44 million, its highest level in the company�s history,
with continued strong growth in all areas but driven primarily by
the solar inverter product line. Sales order bookings for April
alone were over $8 million, including over $4 million for
Photovoltaic Inverters. �This is definitely a positive trend,� said
David Eisenhaure, President and Chief Executive Officer. �With our
current sales order backlog at over $44 million at the end of
April, we believe that we have the ability to achieve revenues on
the order of $50 million for the year 2007, up from our actual
revenue in 2006 of approximately $34 million. The majority of the
increase in our revenue is expected to come from our photovoltaic
inverter product line. As we achieve this increased revenue for
2007, we expect our losses from operations to decline accordingly.
We will need additional working capital to fund that growth, and we
expect to request a release of a negative covenant with our note
holders to allow us to secure this additional working capital
financing.� Commenting on the financial results, David O�Neil, Vice
President of Finance continued, �Our operating losses for the 1st
Quarter of 2007 were $3.0 million as compared to $3.2 million in
the same period of 2006. This decrease in losses is primarily
attributed to lower cost of product in our Applied Technology
division partially offset by the costs associated with the wind
down of the products produced in our now closed Worcester facility.
We continue to increase our direct investment spending in R&D
with a modest increase of $0.1 million to $0.7 million in Q1 2007,
primarily to support the development of new products in our solar
inverter line and to develop new products in our Electronics
division. Our SG&A costs are down by $0.5 million or 19%
primarily in our corporate costs of legal and other fees, and
reduced payroll and overhead costs.� �We continue to take steps to
reduce our overhead spending while increasing our revenues and
order backlog,� concluded Eisenhaure. �We have set some high
expectations for ourselves but, given where we are today, we are
confident that we can achieve those objectives with the proper
financing. We expect that we will achieve those objectives
primarily driven by the growth in alternative energy markets,
particularly photovoltaic inverters.� About SatCon Technology
Corporation SatCon Technology Corporation is a developer and
manufacturer of electronics and motors for the Alternative Energy,
Hybrid-Electric Vehicle, Grid Support, High Reliability Electronics
and Advanced Power Technology markets. For further information,
please visit the SatCon website at www.satcon.com. (SATC-E)
Statements made in this document that are not historical facts or
which apply prospectively are forward-looking statements that
involve risks and uncertainties. These forward-looking statements
are identified by the use of terms and phrases such as �will,�
�believes,� �expects,� �plans,� �anticipates� and similar
expressions. Investors should not rely on forward looking
statements because they are subject to a variety of risks and
uncertainties and other factors that could cause actual results to
differ materially from the Company�s expectation. There can be no
assurance that the company will continue to maintain this level of
new orders or that it can successfully deliver the components and
systems ordered. Additional information concerning risk factors is
contained from time to time in the Company�s SEC filings. The
Company expressly disclaims any obligation to update the
information contained in this release. March 31, 2007 December 31,
2006 ASSETS (Unaudited) Current assets: Cash and cash equivalents $
4,542,678� $ 7,190,827� Restricted cash and cash equivalents
84,000� 84,000� Accounts receivable, net of allowance of $230,709
and $792,245 at March 31, 2007 and December 31, 2006, respectively
6,904,056� 8,549,923� Unbilled contract costs and fees 261,984�
267,247� Inventory 11,177,290� 7,945,874� Prepaid expenses and
other current assets � 2,067,909� � 756,884� � Total current assets
$ 25,037,917� $ 24,794,755� Property and equipment, net 2,725,832�
2,783,900� Goodwill, net 704,362� 704,362� Intangibles, net
1,094,667� 1,224,488� Restricted cash 1,000,000� 1,000,000� Other
long-term assets � 71,382� � 69,782� � Total assets $ 30,634,160� $
30,577,287� � LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities: Current portion of long-term debt $ 82,759� $
123,219� Accounts payable 5,692,407� 4,538,569� Accrued payroll and
payroll related expenses 1,589,303� 1,449,185� Other accrued
expenses 1,683,101� 2,405,447� Accrued restructuring costs ��
1,200,326� Current portion of senior secured convertible notes
5,500,000� 5,500,000� Current portion of warrant liability 401,821�
436,919� Deferred revenue � 8,152,769� � 5,834,537� Total current
liabilities $ 23,102,160� $ 21,488,202� Redeemable convertible
Series B preferred stock (345 shares issued and outstanding at
March 31, 2007 and December 31, 2006, respectively; face value
$5,000 per share; liquidation preference $1,725,000) 1,725,000�
1,725,000� Long-term Senior secured convertible notes, net of
current portion 6,083,422� 7,240,482� Long-term warrant liability,
net of current portion 2,736,569� 2,483,634� Other long-term
liabilities � 106,846� � 108,049� Total Liabilities $ 33,753,997� $
33,045,367� � Commitments and contingencies (Note H) �
Stockholders' deficit: Common stock; $0.01 par value, 100,000,000
shares authorized; 42,113,810 and 40,105,073 shares issued and
outstanding at March 31, 2007 and December 31, 2006, respectively
421,138� 401,051� Additional paid-in capital 159,061,155�
156,379,193� Accumulated deficit (162,377,220) (158,991,838)
Accumulated other comprehensive loss � (224,910) � (256,486) Total
stockholders' deficit $ (3,119,837) $ (2,468,080) Total liabilities
and stockholders' deficit $ 30,634,160� $ 30,577,287� CONSOLIDATED
STATEMENT OF OPERATIONS (Unaudited) � Three Months Ended March 31,
April 1, � 2007� � 2006� Revenue: Product revenue $ 6,532,587� $
6,660,557� Funded research and development and other revenue �
1,785,179� � 946,281� � Total revenue $ 8,317,766� $ 7,606,838� �
Operating costs and expenses: Cost of product revenue 6,370,472�
5,845,145� Research and development and other revenue expenses:
Funded research and development and other revenue expenses
1,356,799� 978,007� Unfunded research and development expenses �
677,409� � 560,082� Total research and development and other
revenue expenses $ 2,034,208� $ 1,538,089� Selling, general and
administrative expenses 2,823,841� 3,359,374� Amortization of
intangibles � 109,821� � 111,671� Total operating costs and
expenses $ 11,338,342� $ 10,854,279� � Operating loss $ (3,020,576)
$ (3,247,441) Change in fair value of Notes and Warrants 234,945�
�� Other (loss) income (40,554) 20,837� Interest income 85,539�
95,299� Interest expense � (644,736) � (102,548) Net loss $
(3,385,382) $ (3,233,853) � Net loss attributable to common
stockholders per weighted average share, basic and diluted $ (0.08)
$ (0.08) Weighted average number of common shares, basic and
diluted 41,394,660� 38,524,241�
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