Satcon Technology Corporation® (NASDAQ CM:SATC), a leading
provider of utility scale power conversion solutions for the
renewable energy market, today announced its results for the second
quarter ended June 30, 2011.
Three Months Ended
(in millions except margin data)
June 30, 2011
June 30,2010
% Change Revenue $45.5 $27.6 64.7% Gross Margin 8.0%
21.0% (37%) Operating Income (Loss) ($20.1) ($5.3) (283%)
Revenue for the second quarter of 2011 was $45.5 million, in
line with its previously revised guidance of $45-$47 million, and
an increase of approximately 64.7% over the same period last
year.
“The market environment in the second quarter was challenging.
Despite the strength of North America, the market conditions in
Europe and Asia had negative effects on our overall performance,”
said Steve Rhoades, President and Chief Executive Officer of
Satcon. “In addition, we incurred one-time charges associated with
inventory, restructuring, and the strategic decision to accelerate
product development. Although these measures have resulted in a
higher than expected operating loss, they have effectively
strengthened our ability to achieve our revenue and cost targets by
the end of 2011.”
During the second quarter, the company shipped 195 MWs of its
industry-leading PowerGate® Plus, Prism® Platform, and Equinox®
solutions. North America continued to be the company’s strongest
performing region, representing 80% of total revenue, with 12%
coming from Asia and 8% from Europe. Satcon's utility scale
solutions of 250kW and above continued to be the company’s
strongest performing offering, shipping over 167 MW, and
representing 86% of total units shipped in the quarter.
At June 30, 2011, the company's backlog, which consists of
purchase orders from its customers, was $55.2 million. Backlog from
North America represented 74% of orders to be delivered. Asia
contributed 15%, while Europe contributed 11%.
For the third quarter of 2011 the company expects revenue to be
in the range of $45 million to $52 million, and gross margin
percentage to be in the mid-teens. “Going forward, we see a strong
North American market with upside coming from Asia and Europe,”
continued Rhoades. “We believe that the measures we have taken in
the quarter give us the flexibility to adapt to the current market
volatility, position us to achieve our guidance, and put us on a
path to a sustainable business.”
Conference Call Reminder
The company will hold a conference call to review its financial
results and business highlights today, August 9, 2011 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-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, including those relating to
preliminary Q2 2011 financial results, expected cost savings from
our workforce reduction, and the use of proceeds from the offering,
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
2011 2010 Current assets:
Cash and cash equivalents $ 28,430,711 $ 30,094,162
Accounts receivable, net of allowance of
$1,803,810 and $974,887at June 30, 2011 and December 31, 2010,
respectively
77,698,142 73,713,308 Unbilled contract costs and fees 174,342
174,342 Inventory 96,213,389 40,542,893 Note receivable 4,382,546 —
Prepaid expenses and other current assets 5,147,850
4,254,246 Total current assets 212,046,980
148,778,951 Property and equipment, net 12,039,485 7,284,285 Other
long-term assets 517,744 — Total
assets $ 224,604,209 $ 156,063,236
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Line of credit
$ 35,000,000 $ 15,000,000
Note payable, current portion, net of
discount of $407,930 and $434,247at June 30, 2011 and December 31,
2010, respectively
3,568,496 2,107,473 Accounts payable 86,778,392 45,060,537 Accrued
payroll and payroll related expenses 3,063,736 4,476,685 Other
accrued expenses 6,465,841 6,824,388 Accrued contract loss
2,268,346 — Accrued restructuring costs 1,032,316 49,203 Current
portion of subordinated convertible notes 6,095,238 — Deferred
revenue 10,136,374 8,099,852 Total
current liabilities 154,408,739 81,618,138 Warrant
liabilities 1,170,652 5,454,109
Note payable, net of current portion and
discount of $259,411 and $399,589at June 30, 2011 and December 31,
2010, respectively
7,148,472
9,058,691
Long-term subordinated convertible notes, net of current portion
10,254,762 — Deferred revenue, net of current portion 17,751,905
11,622,918 Other long-term liabilities 621,942
318,151 Total liabilities 191,356,472 108,072,007
Commitments and contingencies Stockholders' equity:
Preferred stock; $0.01 par value 1,000,000
shares authorized, 0 shares issued and outstandingat June 30, 2011
and December 31, 2010, respectively
—
—
Common stock; $0.01 par value, 200,000,000
shares authorized; 119,327,864 and 117,911,278 shares issued and
outstandingat June 30, 2011 and December 31, 2010, respectively
1,193,279
1,179,113
Additional paid-in capital 300,326,034 291,717,323 Accumulated
deficit (266,842,008 ) (243,475,639 ) Accumulated other
comprehensive loss (1,429,568 ) (1,429,568 ) Total
stockholders' equity 33,247,737 47,991,229
Total liabilities and stockholders' equity $ 224,604,209
$ 156,063,236
SATCON TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended Six Months
Ended June 30,
2011
June 30,
2010
June 30,
2011
June 30,
2010
Product revenue $ 45,497,036 $ 27,627,473 $
107,501,973 $ 42,359,952 Cost of product revenue 41,866,139
21,890,030 88,998,664 34,589,139
Gross margin 3,630,897 5,737,443
18,503,309 7,770,813
Operating expenses: Research and development 9,718,388
2,711,070 15,854,721 5,442,855 Selling, general and administrative
12,898,591 8,282,484 23,121,904 13,862,366 Restructuring charge
1,134,254 — 1,134,254
783,701 Total operating expenses
from continuing operations 23,751,233 10,993,554 40,110,879
20,088,922 Operating loss
from continuing operations (20,120,336 )
(5,256,111 ) (21,607,570 ) (12,318,109 )
Change in fair value of subordinated convertible notes and
warrant liabilities 1,023,622
(857,965
)
1,147,183 231,013 Other (loss) income, net (277,757 ) (251,043 )
(477,613 ) (319,458 ) Interest income 183,125 10 183,276 185
Interest expense (2,036,396 ) (226,169 )
(2,611,645 ) (289,396 )
Loss from continuing operations before
discontinued operations
(21,227,742
)
(6,591,278
)
(23,366,369
)
(12,695,765
)
Gain on sale of discontinued operations, net — — — 500,217
Income from discontinued operations, net —
— — 31,390 Net
loss (21,227,742 ) (6,591,278 )
(23,366,369 ) (12,164,158 ) Deemed dividend
and accretion on Series C preferred stock
—
(1,538,934
)
—
(2,808,125
)
Dividend on Series C preferred stock —
(368,697 ) — (723,757 ) Net loss
attributable to common stockholders $ (21,227,742 ) $
(8,498,909 ) $ (23,366,369 ) $ (15,696,040 ) Net loss
per weighted average share, basic and diluted: From loss from
continuing operations before discontinued operations attributable
to common stockholders
$
(0.18
)
$
(0.12
)
$
(0.20
)
$
(0.22
)
From income from discontinued operations — — — — From gain on sale
of discontinued operations — —
— — Net loss attributable to
common stockholders per weighted average share, basic and diluted
$
(0.18
)
$
(0.12
)
$
(0.20
)
$
(0.22
)
Weighted average number of common shares, basic and diluted
119,137,006 71,512,306
118,931,664 71,216,831
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