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 second quarter ended
June 30, 2010.
(in millions, except per share data)
Three Months
Ended Six Months Ended
June 30,2010
July 4,2009
% Change
June 30,2010
July 4,2009
% Change Revenue $27.6 $7.6 262% $42.4
$21.0 102% Gross Margin 21% -4% 18% 4% Operating loss ($5.3)
($7.0) 25% ($12.3) ($12.1) -2% Net Loss Attributable to Common
Shareholders ($8.5) ($7.1) -20% ($15.7) ($19.0) 17%
Net Loss Attributable to Common
Shareholders per weighted average share, basic
and diluted
($0.12) ($0.13) 8% ($0.22) ($0.36) 39%
“Second quarter sales of $27.6 million represented the largest
quarter in Satcon’s history, reaching revenues over two and a half
times greater than what we reported in the same period a year ago,”
said Steve Rhoades, Satcon’s President and Chief Executive Officer.
“We also grew gross margin to 21%, a significant improvement over
last quarter’s 14%, fueled by the transfer of our primary
manufacturing to our lower cost facility in Shenzhen, China, which
we completed during the second quarter.”
Bookings for the first half of 2010 totaled $123 million,
an increase of 1100% over the same period last year, reflecting the
explosive growth that the company is experiencing in its key end
markets in North America, Europe and Asia Pacific. These bookings
represent 506 MW of orders for Satcon’s products, with 39% of that
demand coming from North America, 25% from Europe and 36% from Asia
Pacific.
For the first half of 2010, the company shipped 161 MW of its
industry-leading PowerGate® Plus, Prism™, and Solstice™ solutions.
Satcon's 500kW PowerGate Plus solution continued to be its
strongest performing product, shipping over 101.5 MW during the
period, and representing 233% growth over the number of 500kW
PowerGate Plus units shipped in the first half of 2009.
At June 30, 2010, the company's backlog, which consists of firm
fixed purchase orders with customers, was $82 million. Backlog from
Asia topped the list representing 43% of orders to be delivered.
North America contributed 42% to the mix, while Europe contributed
15%. Backlog as of August 3, 2010 totaled $111 million, of
which about 90% is currently expected to ship this calendar
year.
“With the strength of our backlog and bookings activity, we
continue to invest in operational enhancements that will grow our
current capacity significantly in the second half of the year and
beyond,” said Rhoades. “This global demand has driven our recent
move to raise our global manufacturing to over 1 gigawatt, and move
toward over 1.75 gigawatts of global capacity in 2011.”
Recent customer wins and company highlights include:
- 20 megawatts of Satcon Prism,
the company’s fully-integrated one megawatt medium voltage
solution, from solar industry leader, Q-Cells, for a number of
large-scale solar plants in Ontario contracted under the Renewable
Energy Standard Offer Program.
- Chosen by Southern California
Edison to supply at least 75% of Satcon’s utility-ready inverter
solutions to the utility’s Solar Photovoltaic Program, a 250
megawatt solar rooftop initiative.
- Five megawatts of Satcon Prism
provided to Pacific Gas & Electric to power the largest solar
farm to date on the utility’s network for Cal-RENEW 1 in Mendota,
California.
- Chosen by Enfinity, a leading
worldwide solar energy development company, to supply PowerGate
Plus 500kW solutions for two power stations at one of France’s
largest solar farms.
- Installed the first commercial
site utilizing Satcon’s 100kW Solstice power conversion solutions
on a 425kW rooftop installation developed by Broadway Electric. The
Solstice solutions will be integrated with Solstice SSB combiner
boxes, which house unique string level DC to DC conversion, maximum
power point tracking, performance management and system
communication technologies.
- Expanded Satcon’s Solstice
product portfolio to include a 125kW system solution for Europe and
Asia, and a 500kW system solution now available in North America
with European and Asian solutions available later this year.
- Launched Equinox™, Satcon’s
third-generation 500kW central inverter system solution that
provides 98.5% efficiency and the industry’s highest levels of
system-wide performance, uptime, and reliability.
"As we look to the third quarter of 2010, we are well-positioned
to deliver significant top-line growth with revenues expected to be
in the $43-$47 million range,” Rhoades said. “We are also
confirming that we anticipate achieving gross margin greater than
30% in the second half of the year as a result of the continuous
improvements we are making to our operations and manufacturing
supply chain, and that we remain on target to have our operations
plan fully implemented by the end of Q3. With these improvements,
we expect that our margins in the third quarter will be in the mid
to high 20’s, and margins for the fourth quarter will be in the low
to mid 30% range."
Rhoades continued, “We see momentum continuing into our fourth
quarter of 2010, and expect that our fourth quarter revenues will
increase over those that we generate in our third quarter."
Satcon also announced that it has entered into an agreement with
Silicon Valley Bank to increase its revolving line of credit to $15
million. “This expansion of our senior debt facility, along with
the $12 million subordinated debt transaction we closed in
June, provides Satcon with greater working capital resources to
support our growth plans in the global utility-scale solar market,”
said Donald Peck, Satcon’s Chief Financial Officer.
Conference Call Reminder
The company will hold a conference call to review its financial
results and business highlights today, August 5, 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 BALANCE
SHEETS
(Unaudited)
June 30, December 31, ASSETS
2010 2009 Current assets: Cash and cash equivalents $
14,381,207 $ 13,369,208 Restricted cash and cash equivalents —
34,000
Accounts receivable, net of
allowance of $1,154,187 and $196,909 at June 30, 2010 and December
31, 2009,respectively
28,545,956 17,577,640 Unbilled contract costs and fees 174,342
202,228 Inventory 18,685,977 11,898,571 Prepaid expenses and other
current assets 2,192,588 717,535 Current assets of discontinued
operations — 35,004 Total
current assets 63,980,070 43,834,186 Property and equipment, net
4,898,343 4,633,926 Non-current assets of discontinued operations
— 224,227 Total assets $
68,878,413 $ 48,692,339
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities: Line of credit $ 9,360,912 $ 3,000,000 Notes
payable, current portion 615,690 — Accounts payable 20,166,133
20,751,975 Accrued payroll and payroll related expenses 2,733,425
2,235,349 Other accrued expenses 3,802,181 2,710,568 Accrued
restructuring costs 375,023 38,034 Deferred revenue, current
portion 7,052,199 451,008 Current liabilities of discontinued
operations — 117,702 Total current
liabilities 44,105,563 29,304,636 Warrant liabilities 4,446,742
4,976,774 Notes payable, net of current portion 10,313,673 —
Deferred revenue, net of current portion 7,407,674 5,531,413
Redeemable convertible Series B
preferred stock (75 shares issued and outstanding at June 30, 2010
and December 31,2009; face value $5,000 per share; liquidation
preference at June 30, 2010 $375,000)
375,000
375,000
Other long-term liabilities 232,818 280,472
Total liabilities 66,881,470 40,468,295 Commitments and
contingencies
Redeemable convertible Series C
preferred stock (25,000 shares issued and outstanding at June 30,
2010 and December31, 2009, face value $1,000 per share, liquidation
preference $28,219,863 and $27,600,000 at June 30, 2010 andDecember
31, 2009 respectively)
24,759,305
22,257,423
Stockholders' deficit:
Common stock; $0.01 par value,
200,000,000 shares authorized; 72,126,226 and 70,567,781 shares
issued andoutstanding at June 30, 2010 and December 31, 2009,
respectively
721,262
705,678
Additional paid-in capital 221,766,836 218,599,384 Accumulated
deficit (243,820,892 ) (231,656,734 ) Accumulated other
comprehensive loss (1,429,568 ) (1,681,707 ) Total
stockholders' deficit (22,762,362 ) (14,033,379 )
Total liabilities and stockholders' deficit $ 68,878,413 $
48,692,339
SATCON TECHNOLOGY
CORPORATION
CONSOLIDATED STATEMENT OF
OPERATIONS
(Unaudited)
Three Months Ended Six Months
Ended June 30,
2010
July 4,
2009
June 30,
2010
July 4,
2009
Product revenue $ 27,627,473 $ 7,627,619 $ 42,359,952 $
21,007,468 Cost of product revenue 21,890,030 7,935,446
34,589,139 20,220,484
Gross margin
5,737,443 (307,827 ) 7,770,813
786,984 Operating expenses: Research and development
2,711,070 2,244,162 5,442,855 4,115,424 Selling, general and
administrative 8,282,484 4,417,941 13,862,366 8,766,222
Restructuring charge — — 783,701
— Total operating expenses from
continuing operations 10,993,554 6,662,103 20,088,922 12,881,646
Operating loss from continuing operations
(5,256,111 ) (6,969,930 ) (12,318,109 )
(12,094,662 ) Change in fair value of warrant liabilities
(857,965 ) 1,776,137 231,013 (3,594,334 ) Other (loss) income, net
(251,043 ) (486,649 ) (319,458 ) (625,590 ) Interest income 10
1,836 185 5,567 Interest expense (226,169 ) (137,823
) (289,396 ) (220,184 ) Net loss from continuing
operations (6,591,278 ) (5,816,429 )
(12,695,765 ) (16,529,203 ) Gain on sale of
discontinued operations, net — — 500,217 — Income (loss) from
discontinued operations, net — (16,511 )
31,390 (58,193 ) Net loss (6,591,278 )
(5,832,940 ) (12,164,158 ) (16,587,396 )
Deemed dividend and accretion on Series C preferred stock
(1,538,934
)
(887,526
)
(2,808,125
)
(1,709,020
)
Dividend on Series C preferred stock (368,697 )
(387,051 ) (723,757 ) (708,089 ) Net loss
attributable to common stockholders $ (8,498,909 ) $ (7,107,517 ) $
(15,696,040 ) $ (19,004,505 )
Net loss attributable to common
stockholders per weighted average share, basic and
diluted
$
(0.12
)
$
(0.13
)
$
(0.22
)
$
(0.36
)
Weighted average number of common shares, basic and diluted
71,512,306 54,717,764 71,216,831
53,127,814
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