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 third quarter ended
September 30, 2010.
(in millions, except per share data)
Three Months
Ended
Nine Months
Ended
Sept 30,
2010
Oct 3,
2009
% Change
Sept 30,
2010
Oct 3,
2009
% Change
Revenue $58.4 $10.0 481% $100.7 $31.0 224% Gross Margin (Loss) 27%
-4% 23% 1% Operating Income (Loss) $1.7 ($7.4) -- ($10.6) ($19.5)
46% Net Loss Attributable to Common Shareholders ($1.6) ($8.6) 81%
($17.3) ($27.6) 37% Net Loss Attributable to Common Shareholders
per weighted average share, basic and diluted ($0.02) ($0.12) 83%
($0.24) ($0.47) 49%
“Satcon posted another record quarter with sales reaching $58.4
million, representing over 480% growth from what we reported in the
same period a year ago, and exceeding our preliminary revenue
projection of $56 million to $58 million,” said Steve Rhoades,
Satcon’s President and Chief Executive Officer. “We also grew gross
margin to 27%, which was in line with our guidance and ahead of
last quarter’s gross margin of 21%.”
Bookings for the first nine months of 2010 totaled over $200
million, which represented 800MW of orders for Satcon’s products,
with 54% of that demand coming from North America, 29% from Europe
and 17% from Asia Pacific.
For the first nine months of 2010, the company shipped 380 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 249 MW during the
period, and representing a 493% growth over the number of 500kW
PowerGate Plus units shipped in the first nine months of 2009.
At September 30, 2010, the company's backlog, which consists of
purchase orders with customers, was $93 million. Backlog from North
America topped the list representing 54% of orders to be delivered.
Asia contributed 33%, while Europe contributed 13%. Backlog as of
October 27, 2010 totaled $132.6 million, of which about 85% is
currently expected to ship in the next two quarters.
“Given the continued strength of the utility scale market,
coupled with our robust revenue growth and current backlog and
pipeline, we continue to believe that we will acquire 20 percent of
the global market for PV inverters at 250 kilowatt and above in
2011,” Rhoades continued.
Recent customer wins and company highlights include:
- Raised $37.5 million in a public
offering of common stock driven by the company’s successful
strategic and operational performance year to date and current
market position.
- Selected for a 1.2MW showcase
installation at a water treatment facility in Kent County,
Delaware. The ARRA funded project will be the first commercial side
by side installation utilizing Satcon's 100kW PowerGate Plus and
Solstice solutions.
- Selected to supply 63MWs of its
Solstice 500kW solutions for a PV plant in the U.S. Commonwealth of
Puerto Rico. The CIRO One installation will be the largest ground
mounted solar PV plant in the U.S.
- Announced the general availability of
Satcon Equinox™ in North America and Europe. Equinox is Satcon’s
next generation utility ready inverter solution with 98.5%
efficiency.
- Expanded its partnership with GCL Solar
Limited to include a strategic manufacturing agreement that will
enhance the company’s availability of its 500kW PowerGate Plus line
of solar PV inverters for the Asia Pacific market and create an
additional 500MWs of manufacturing capacity.
- Enhanced Satcon’s portfolio of industry
leading solar PV inverter technologies with the launch of the
Satcon Solstice 500kW central inverter system solution, now
available in North America.
- 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.
“By concentrating our efforts on next-generation technologies,
coupled with the expansion of our international sales and service,
and manufacturing footprint, we are positioning Satcon for
long-term growth and with a clear differentiation from our current
and future competitors,” said Rhoades. “As we look to the remainder
of 2010, we expect our fourth quarter revenues will increase
significantly to between $70 million and $75 million and our gross
margin percentage to be between 28% and 32%. On the strength of our
bookings pipeline and diversification of our geographic presence,
we do not expect revenues in the first quarter of 2011 to be
affected by the seasonality we’ve experienced in recent years.”
Conference Call Reminder
The company will hold a conference call to review its financial
results and business highlights today, October 28, 2010 at 8:30
a.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-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
http://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)
September 30, December 31,
ASSETS 2010 2009
Current assets: Cash and cash equivalents $ 11,334,854 $ 13,369,208
Restricted cash and cash equivalents — 34,000 Accounts receivable,
net of allowance of $854,887 and $196,909 at September 30, 2010 and
December 31, 2009, respectively 55,216,395 17,577,640 Unbilled
contract costs and fees 174,342 202,228 Inventory 28,438,176
11,898,571 Prepaid expenses and other current assets 3,103,885
717,535 Current assets of discontinued operations —
35,004 Total current assets 98,267,652
43,834,186 Property and equipment, net 4,956,478 4,633,926
Non-current assets of discontinued operations —
224,227 Total assets $ 103,224,130 $
48,692,339
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities: Line of credit $ 15,000,000 $ 3,000,000 Notes
payable, current portion 1,563,642 — Accounts payable 40,222,141
20,751,975 Accrued payroll and payroll related expenses 3,489,072
2,235,349 Other accrued expenses 6,635,564 2,710,568 Accrued
restructuring costs 207,129 38,034 Deferred revenue, current
portion 6,280,031 451,008 Current liabilities of discontinued
operations — 117,702 Total current
liabilities 73,397,579 29,304,636 Warrant liabilities 5,428,437
4,976,774 Notes payable, net of current portion and discount of
$950,238 9,486,120 — Deferred revenue, net of current portion
8,875,934 5,531,413 Redeemable convertible Series B preferred stock
(75 shares issued and outstanding at September 30, 2010 and
December 31, 2009; face value $5,000 per share; liquidation
preference at September 30, 2010 $375,000)
375,000
375,000
Other long-term liabilities 228,342 280,472
Total liabilities 97,791,412 40,468,295 Commitments and
contingencies Redeemable convertible Series C preferred stock
(25,000 shares issued and outstanding at September 30, 2010 and
December 31, 2009, face value $1,000 per share, liquidation
preference $28,534,932 and $27,600,000 at September 30, 2010 and
December 31, 2009, respectively)
26,503,432
22,257,423
Stockholders' deficit: Common stock; $0.01 par value,
200,000,000 shares authorized; 78,540,071 and 70,567,781 shares
issued and outstanding at September 30, 2010 and December 31, 2009,
respectively
$
785,401
$
705,678
Additional paid-in capital 223,245,348 218,599,384 Accumulated
deficit (243,671,895 ) (231,656,734 ) Accumulated other
comprehensive loss (1,429,568 ) (1,681,707 ) Total
stockholders' deficit (21,070,714 ) (14,033,379 )
Total liabilities and stockholders' deficit $ 103,224,130 $
48,692,339
SATCON TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENT OF
OPERATIONS
(Unaudited)
Three Months Ended Nine Months
Ended September 30,
2010
October 3,
2009
September 30,
2010
October 3,
2009
Product revenue $ 58,381,821 $ 10,040,941 $
100,741,773 $ 31,048,409 Cost of product revenue 42,678,081
10,466,120 77,267,220 30,686,604
Gross margin (loss) 15,703,740
(425,179 ) 23,474,553 361,805
Operating expenses: Research and development 4,320,274
2,187,554 9,763,129 6,302,978 Selling, general and administrative
9,677,483 4,611,625 23,539,849 13,377,847 Restructuring charge
— 211,267 783,701
211,267 Total operating expenses from
continuing operations 13,997,757 7,010,446 34,086,679 19,892,092
Operating income (loss)
from continuing operations 1,705,983
(7,435,625 ) (10,612,126 ) (19,530,287 )
Change in fair value of warrant liabilities (1,269,118 )
(305,289 ) (1,038,105 ) (3,899,623 ) Other income (loss), net
340,387 384,261 20,929 (241,329 ) Interest income — 2,956 185 8,523
Interest expense (628,255 ) (38,919 )
(917,651 ) (259,103 ) Net income (loss) from
continuing operations 148,997
(7,392,616 ) (12,546,768 ) (23,921,819 )
Gain on sale of discontinued operations, net — — 500,217 —
Income (loss) from discontinued operations, net —
135,303 31,390
77,110 Net income (loss) 148,997
(7,257,313 ) (12,015,161 ) (23,844,709 )
Deemed dividend and accretion on Series C preferred stock
(1,359,514
)
(978,257
)
(4,167,639
)
(2,687,277 ) Dividend on Series C preferred stock (384,613 )
(320,180 ) (1,108,370 )
(1,028,269 ) Net loss attributable to common stockholders $
(1,595,130 ) $ (8,555,750 ) $ (17,291,170 ) $
(27,560,255 ) Net loss per weighted average share, basic and
diluted: From loss on continuing operations attributable to common
stockholders
$
(0.02
)
$
(0.12
)
$
(0.25
)
$
(0.47
)
From loss on discontinued operations — — — — From gain on sale of
discontinued operations — — $
0.01 — Net loss attributable to common
stockholders per weighted average share, basic and diluted
$
(0.02
)
$
(0.12
)
$
(0.24
)
$
(0.47
)
Weighted average number of common shares, basic and diluted
75,467,911
70,239,878
72,633,858
58,831,835
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