Satcon Technology Corporation (NASDAQ CM:SATC), a leading
provider of utility scale power solutions for the renewable energy
market, today announced its results for the first quarter ended
March 31, 2010.
(in millions, except per share data) Three Months Ended
Three Months Ended March 31, April 4, 2010 2009
Revenue $ 14.7 $ 13.4 Gross Margin $ 2.0 $ 1.1 Gross
Margin Percentage 13.8 % 8.2 %
Operating Loss from Continuing
Operations
$ (7.1 ) $ (5.1 ) Net Loss Attributable to Common $ (7.2 ) $
(11.9 ) Shareholders Net Loss Attributable to Common $ (0.10
) $ (0.23 ) Shareholders per weighted average share, basic and
diluted
“We are very pleased with our performance in the first quarter
of 2010 during which we continued to build on the strong growth
momentum of 2009 and further strengthened our position as the world
leader in utility grade power conversion system solutions,” said
Steve Rhoades, Satcon President and Chief Executive Officer. “With
bookings for the first quarter far outpacing total revenues for all
of 2009, and strong order levels continuing into the second
quarter, we are well positioned to deliver significant top line
growth in 2010. In addition to maintaining our dominant market
share in Canada and the US, the growth of our backlog is coming
from each of the geographies we serve, with significant increases
in orders through our expanded presence in both China and Europe.
This further demonstrates the strong demand for our best in class
utility ready solutions worldwide.”
Bookings for the quarter reached $66 million, reflecting
increasing global demand for the Company’s products. Bookings from
China topped the list with 191 MW ordered. Europe contributed
47 MW to the mix and North America totaled 61 MW of
booked orders. At May 3, 2010, the Company’s backlog, which
consists of firm fixed purchase orders with customers, totaled over
$80 million.
Rhoades continued, “Our revenue and margin performance for the
first quarter of 2010 is in-line with the guidance we provided
earlier. In the quarter, restructuring of the Burlington, Ontario
facility was completed along with the transfer of manufacturing for
over 80% of our designs from Ontario to Shenzhen, China. Looking
forward to the second quarter, we expect our revenues will increase
significantly to between $25 million and $28 million, which would
be over three times the revenue we recorded during the same period
last year. In addition, we expect our gross margins in the second
quarter will continue to increase to over 20% as we complete our
transition of production to our lower-cost facility in China. We
remain on target to have the operations plan fully implemented by
mid 2010 and expect further margin expansion to over 30% in the
second half of 2010.”
During the first quarter, the company shipped 234 units of its
industry-leading PowerGate® Plus and Solstice™ solutions. Satcon’s
500kW PowerGate Plus solution continued to be its strongest
performing product, shipping 71 units, and representing 82% growth
over the number of 500kW units shipped in the first quarter of
2009.
Conference Call Reminder
The Company will hold a conference call to review its financial
results and business highlights today, May 6, 2010 at 5:00
p.m. ET. During the conference call, the Company may answer
questions concerning business and financial developments and
trends, and other business and financial matters. The Company’s
responses to these questions, as well as other matters discussed
during the conference call, may contain or constitute information
that has not been previously disclosed.
The conference call will be webcast live over the Internet and
can be accessed on the Investor Relations section of the Company’s
website at http://investor.satcon.com. The conference call also can
be accessed by dialing (877) 407-8289 (U.S. and Canada) or (201)
689-8341 (International). Interested parties that are unable to
listen to the live call may access an archived version of the
webcast on Satcon’s website.
About Satcon
Satcon Technology Corporation is a leading provider of utility
scale power solutions for the renewable energy market, enabling the
industry’s most advanced, reliable, and proven clean energy
alternatives. For over 24 years, Satcon has designed and delivered
the next generation of efficient energy systems for solar
photovoltaic, stationary fuel cells, and energy storage systems. To
learn more about Satcon, please visit www.Satcon.com.
Safe Harbor
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,"
"intends," "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. Additional
information concerning risk factors is contained from time to time
in the Company's SEC filings, including its Annual Report on Form
10-K and other periodic reports filed with the SEC. Forward-looking
statements contained in this press release speak only as of the
date of this release. Subsequent events or circumstances occurring
after such date may render these statements incomplete or out of
date. The Company expressly disclaims any obligation to update the
information contained in this release.
SATCON TECHNOLOGY
CORPORATION
CONSOLIDATED STATEMENT OF
OPERATIONS
(Unaudited)
Three Months Ended
March 31,
2010
April 4,
2009
Product revenue $ 14,732,479 $ 13,379,849 Cost of
product revenue 12,699,109 12,285,038 Gross
margin 2,033,370 1,094,811 Operating expenses:
Research and development 2,731,785 1,871,262 Selling, general and
administrative 5,579,882 4,348,281 Restructuring charges 783,701
— Total operating expenses from continuing operations
9,095,368 6,219,543 Operating loss from continuing
operations (7,061,998) (5,124,732) Change in fair
value of warrant liabilities 1,088,978 (5,370,471) Other (loss)
income, net (68,415) (138,941) Interest income 175 3,731 Interest
expense (63,227) (82,361) Net loss from continuing
operations (6,104,487) (10,712,774) Income/(loss) from
discontinued operations, net 31,390 (41,682) Gain on sale of
discontinued operations, net 500,217 — Net loss (5,572,880)
(10,754,456) Deemed dividend and accretion on Series
C preferred stock (1,269,191) (821,494) Dividend on Series C
preferred stock (355,060) (321,038) Net loss attributable to
common stockholders $ (7,197,131) $ (11,896,988) Net
loss per weighted average share, basic and diluted: From loss on
continuing operations attributable to common stockholders $(0.11)
$(0.23) From income (loss) on discontinued operations $0.00 $(0.00)
From gain on sale of discontinued operations $0.01 — Net loss
attributable to common stockholders per weighted average share,
basic and diluted
$(0.10)
$(0.23)
Weighted average number of common shares, basic and diluted
70,921,357 51,537,864
SATCON TECHNOLOGY
CORPORATION
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
March 31, December 31, ASSETS
2010
2009
Current assets: Cash and cash equivalents $ 11,665,836 $ 13,369,208
Restricted cash and cash equivalents 34,000 34,000 Accounts
receivable, net of allowance of $203,832 and $196,909 at March 31,
2010 and December 31, 2009, respectively 13,340,640 17,577,640
Unbilled contract costs and fees 174,342 202,228 Inventory
15,786,656 11,898,571 Prepaid expenses and other current assets
1,121,182 717,535 Current assets of discontinued operations
— 35,004 Total current assets 42,122,656
43,834,186 Property and equipment, net 4,756,792 4,633,926
Non-current assets of discontinued operations —
224,227 Total assets $ 46,879,448 $ 48,692,339
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities: Line of credit $ 8,600,000 $ 3,000,000
Accounts payable 14,562,818 20,751,975 Accrued payroll and payroll
related expenses 2,908,934 2,235,349 Other accrued expenses
3,056,318 2,710,568 Accrued restructuring costs 606,168 38,034
Deferred revenue 1,524,910 451,008 Current liabilities of
discontinued operations — 117,702 Total
current liabilities 31,259,148 29,304,636 Warrant
liabilities 3,712,468 4,976,774 Deferred revenue, net of current
portion 6,409,418 5,531,413 Redeemable convertible Series B
preferred stock (75 shares issued and outstanding at March 31, 2010
and December 31, 2009, respectively; face value $5,000 per share;
liquidation preference $375,000)
375,000
375,000
Other long-term liabilities 256,645 280,472
Total liabilities 42,012,679 40,468,295 Commitments and
contingencies
Redeemable convertible Series C
preferred stock (25,000 shares issued and outstanding at March 31,
2010 and December 31, 2009, face value $1,000 per share,
liquidation preference $27,908,219 and $27,600,000 at March 31,
2010 and December 31, 2009 respectively)
23,521,674
22,257,423
Stockholders' deficit:
Common stock; $0.01 par value,
200,000,000 shares authorized; 71,193,322 and 70,567,781 shares
issued and outstanding at March 31, 2010 and December 31, 2009,
respectively
711,933
705,678
Additional paid-in capital 219,292,344 218,599,384 Accumulated
deficit (237,229,614 ) (231,656,734 ) Accumulated other
comprehensive loss (1,429,568 ) (1,681,707 ) Total
stockholders' deficit (18,654,905 ) (14,033,379 )
Total liabilities and stockholders' deficit $ 46,879,448 $
48,692,339
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