Satcon® Announces Preliminary Third Quarter 2010 Financial Results and Launch of Public Offering
October 18 2010 - 6:30AM
Business Wire
Satcon Technology Corporation® (NASDAQ CM:SATC), a leading
provider of utility-grade power conversion solutions for the
renewable energy market, today provided preliminary unaudited
financial results for revenue, gross margin, operating profit and
net income for the Company’s third quarter ended September 30, 2010
in advance of its earnings call scheduled for October 28,
2010.
For the third quarter of 2010, Satcon expects to report revenues
of between $56 million and $58 million, an increase of over 450%
from its revenues for the comparable period last year, and ahead of
its earlier provided guidance of quarterly revenues of between $43
million and $47 million for the period. Satcon’s revenues for the
nine months ended September 30, 2010 were in the range of $98
million to $100 million, an increase of approximately 220% from the
Company’s revenues during the same nine-month period during fiscal
2009. Satcon also expects to report a gross margin percentage for
the third quarter of 2010 of between 26% and 28%, which percentage
would be in line with its previous guidance. Satcon anticipates it
will report positive operating income for the third quarter of
2010.
The Company’s positive operating income for the third quarter
does not reflect the impact of interest, taxes and other
non-operating expenses, as well as non-cash charges such as foreign
exchange gains or losses, changes in the fair value of outstanding
warrants, and dividends and accretion of Series C preferred stock.
Satcon expects that the net impact of these non-operating charges
will result in a net loss attributable to common stockholders for
the third quarter of between $0.02 and $0.03 per share.
In addition, Satcon reported that its bookings recorded during
the third quarter were approximately $78 million. Satcon’s bookings
through September 30, 2010 total over $200 million, an increase of
465% over bookings recorded during the same nine-month period last
year. These year-to-date bookings represent over 800 MW of orders
for Satcon’s products, with 49% of these bookings coming from North
America, 28% from Europe and 23% from Asia.
At October 15, 2010, the Company’s backlog, which consists of
purchase orders with customers expected to be shipped during the
balance of 2010 and through September 30, 2011, was approximately
$124 million. Backlog from North America represented 58% of orders
to be delivered, Asia contributed 24% to the total, while Europe
contributed 18%.
Satcon also reported that it expects its revenues for the fourth
quarter of 2010 to be in the range of $70 million to $75 million
and anticipates achieving a gross margin percentage for the fourth
quarter of between 28% and 32%.
To generate cash to fund its continued growth, the Company also
announced that it is offering to sell shares of its common stock in
an underwritten public offering. The offering is subject to market
conditions and there can be no assurance as to whether or when the
offering may be completed, or as to the actual size or terms of the
offering. Jefferies & Company, Inc. is acting as the sole
book-running manager for the offering.
On October 15, 2010, in order to simplify its capital structure,
the Company entered into an agreement with RockPort Capital
Partners II, L.P. and NGP Energy Technology Partners, L.P., the
holders of the Company’s outstanding Series C Preferred Stock,
pursuant to which Rockport and NGP have agreed to convert their
shares of Series C Preferred Stock into approximately 27,665,859
shares of the Company’s common stock simultaneously with the
consummation of the offering described above. The 27,665,859 shares
represent the number of shares of the Company’s common stock
underlying the Series C Preferred Stock pursuant to the existing
terms of the Series C Preferred Stock. To induce the Series C
Preferred Stock holders to convert their shares, the Company will
pay the Series C Preferred Stock holders an aggregate of $1.25
million in cash upon conversion.
The Company has filed a registration statement (including a
prospectus supplement and an accompanying prospectus) with the
Securities and Exchange Commission, or SEC, for the offering to
which this communication refers. Before you invest, you should read
the prospectus supplement and the accompanying prospectus and other
documents the Company has filed or will file with the SEC,
including any free writing prospectus that the Company authorizes
for use in connection with the offering, for more complete
information about the Company and the offering. You may obtain
these documents for free by visiting EDGAR on the SEC Web site at
www.sec.gov. Alternatively, the Company or the underwriter for this
offering will arrange to send you the prospectus supplement, the
accompanying prospectus and any free writing prospectus that the
Company authorizes for use in connection with the offering, if you
request it from Equity Syndicate Prospectus Department, Jefferies
& Company by calling toll-free at 877-547-6340 or emailing
Prospectus_Department@Jefferies.com.
About Satcon
Satcon Technology Corporation is a leading provider of
utility-grade power conversion solutions for the renewable energy
market, enabling the industry’s most advanced, reliable, and proven
clean energy alternatives. For more than ten years, Satcon has
designed and delivered advanced power conversion products that
enable large-scale producers of renewable energy to convert the
clean energy they produce into grid-connected efficient and
reliable power. 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 expectations. Such factors
include whether the Company will be able to deliver sufficient
product to meet its revenue forecast and whether the Company will
be able to achieve its estimated gross margin percentage, each of
which is dependent upon the actual product mix sold, as well as the
actual cost of components used in the Company’s products and
freight charges. Further, whether or not the offering described
above occurs is dependent on factors such as market receptivity and
the value of the Company’s common stock. 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.
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