SatCon Streamlines Operations to Focus Investment Spending on Rapidly Growing Renewable Energy Business
20 September 2006 - 11:19PM
Business Wire
Record Backlog Exceeds $33 Million SatCon Technology Corporation(R)
(Nasdaq NM: SATC), a developer and manufacturer of power
electronics and motors for the alternative energy markets, today
announced that it intends to close its manufacturing facility in
Worcester, Massachusetts prior to December 31, 2006, and is
streamlining operations to focus spending on the rapidly growing
renewable energy business. Orders on hand are at an all-time high
of over $33 million, including more than $16 million from
Stationary Power Systems, SatCon's subsidiary focused on renewable
energy products. While total orders on hand are up over 50 percent
compared with this same time a year ago, the orders on hand for
Stationary Power Systems are up approximately 165 percent, compared
with $6 million a year ago, and is indicative of the success the
Company is having in our renewable energy product lines. In order
to ensure that the Company will be able to respond effectively to
these rapidly emerging market opportunities, steps are being taken
to curtail activities in non-strategic product lines and direct
working capital towards growth markets like photovoltaic inverters.
"Our record level of orders on hand gives me confidence that we are
on track to transform this company into a high growth renewable
energy company. We believe that the steps we are taking to
consolidate facilities and align our organization with our product
and market initiatives will ultimately drive the business towards
sustainability," said David Eisenhaure, Chairman and Chief
Executive Officer. "We are taking the opportunity to do more work
in fewer square feet of manufacturing space by reducing our
facilities' space by approximately one third and yet continue to
grow our revenues in our strategic product areas. The combination
of reducing costs, identifying non-strategic initiatives and
focusing on high growth market opportunities is expected to drive
significant productivity gains and result in improved financial
performance." About SatCon Technology Corporation SatCon Technology
Corporation is a developer and manufacturer of electronics and
motors for the Alternative Energy, Hybrid-Electric Vehicle, Grid
Support, High Reliability Electronics and Advanced Power Technology
markets. For further information, please visit the SatCon website
at www.satcon.com. SATC-G 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. The
Company expressly disclaims any obligation to update the
information contained in this release.
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