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
October 3, 2009.
(in millions, except per share data) Three Months Ended
Nine Months Ended
October 3,2009
September 27,2008
% Change
October 3,2009
September 27,2008
% Change
Revenue $11.7 $18.5 -37% $35.7 $43.2 -17% Gross Margin 1% 19% 4%
14% Operating loss ($7.3) ($3.3) -120% ($19.5) ($10.9) -78% Net
Loss Attributable to Common Shareholders ($8.5) ($3.0) -186%
($27.5) ($16.5) -67% Net Loss Attributable to Common Shareholders
per weighted average share, basic and diluted ($0.12) ($0.06) -100%
($0.47) ($0.33) -42%
“During the quarter we saw a peak in costs associated with the
transition of our manufacturing to China that led to a significant
increase in our manufacturing costs,” said Steve Rhoades, Satcon’s
President and Chief Executive Officer. “These transition costs will
continue into the fourth quarter, but will be lower relative to our
expected Q4 revenue, and we expect to largely complete the
transition by the end of the year.”
“While total sales were down year over year due to the global
recession, revenue for the third quarter increased 27% over the
second quarter of 2009,” said Rhoades. “Our top-line growth
highlights the successful execution of our corporate strategy to
develop and launch the industry’s most advanced utility scale solar
PV inverter solutions. In addition, we began to see an increase in
bookings in North America, Europe and China, resulting in current
backlog of over $24 million, positioning us for a solid fourth
quarter.”
Highlights from the third quarter included a number of landmark
customer wins that are significant to the growth of utility scale
solar in North America.
- Completion of the nine (9)
megawatt First Light installation in Ontario, Canada, which
leveraged 500 kilowatt PowerGate™ Plus inverters, the largest
system currently deployed under Ontario’s Renewable Energy Standard
Offer Program.
- Order for five (5) megawatts of
Satcon Prism™ which will complete the nine (9) megawatt solar farm
for the nation’s largest urban solar PV power plant in Chicago,
Illinois.
- Shipment of five (5) megawatts
of Satcon Prism for CalRENEW, the largest utility-scale PV solar
facility being developed under California’s Renewable Portfolio
Standard program.
The company also secured an order for approximately 23 megawatts
of the company’s PowerGate Plus 500 kilowatt inverters to a large
Chinese reseller. This is Satcon’s largest single order to date,
and will be delivered in the fourth quarter of 2009.
During the quarter Satcon also experienced strong demand for its
ARRA and Ontario FIT compliant inverters, including two projects in
California totaling 2.4 megawatts of Satcon PowerGate Plus
solutions.
Other recently announced highlights include:
- The general availability of
Satcon Solstice™, the industry’s first complete power harvesting
and management solution for utility-class solar power plants.
- The recent competitive grant
awarded to Satcon under the Solar Energy Grid Integration System
(SEGIS) by the Department of Energy and contract manager, Sandia
National Laboratories.
- Two awards from the Department
of Energy (DOE) under the high penetration initiative, one with the
Sunshine State Solar Grid Initiative team (SUNGRIN) to study high
penetration solar PV, and one with the National Renewable Energy
Lab (NREL) and Southern California Edison on high penetration PV in
congested grid environments.
- Approximately 17 megawatts of
orders received for Satcon Prism, North America’s first
fully-integrated one megawatt medium voltage solution.
- The partnership with Suntech
Power Holdings as part of its Reliathon platform, a fully
integrated solar plant solution designed to speed the development
of utility-scale solar plants.
- The partnership with Canadian
Solar for complete large scale solar system solutions designed to
meet the domestic content requirements outlined by the Ontario
government in its recently announced feed-in-tariff program.
“The momentum of our business is steadily improving which is
supported by the growing strength of the large scale solar market
and the increasing demand for utility grade solar solutions,” said
Rhoades. “We continue to see the trend of projects growing in both
size and sophistication and, most importantly, we have seen the
expansion of large scale projects into new emerging markets both
domestically and worldwide. We continue to target reaching our
first key financial milestone of cash generation on a run-rate
basis as we exit 2009.”
Conference Call Reminder
The company will hold a conference call to review its financial
results and business highlights today, October 27, 2009 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 distributed 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, wind-turbines, 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)
ASSETS
October 3,
2009
December 31,2008
Current assets: Cash and cash equivalents $16,306,546 $9,957,716
Restricted cash and cash equivalents 84,000 84,000 Accounts
receivable, net of allowance of $191,217 and $168,219 at October 3,
2009 and December 31, 2008, respectively 11,666,490
11,471,671
Unbilled contract costs and fees 189,675 398,707 Inventory
9,608,123 11,457,532 Prepaid expenses and other current assets
1,060,465 1,040,441 Total current assets $38,915,299
$34,410,067 Property and equipment, net 3,049,006 1,964,968
Goodwill, net 123,714 123,714 Intangibles, net 102,810 398,526
Total assets $42,190,829 $36,897,275
LIABILITIES
AND STOCKHOLDERS' DEFICIT Current liabilities: Line of credit
$3,000,000 $3,000,000 Accounts payable 10,190,033 8,588,313
Short-term secured note
payable
1,297,200 — Accrued payroll and payroll related expenses 1,854,718
2,042,786 Other accrued expenses 3,181,529 2,825,255 Accrued
contract loss — 1,131,370 Accrued restructuring costs 216,483
602,782 Deferred revenue 1,658,291 4,214,389 Total current
liabilities $21,398,254 $22,404,895 Warrant liabilities
$3,154,817 $2,407,438 Deferred revenue, net of current portion
4,041,571 2,512,794 Redeemable convertible Series B preferred stock
(75 and 290 shares issued and outstanding at October 3, 2009 and
December 31, 2008, respectively; face value $5,000 per share;
liquidation preference $375,000 and $1,450,000 at October 3, 2009
and December 31, 2008, respectively)
375,000
1,450,000
Other long-term liabilities 34,879 58,282 Total Liabilities
$29,004,521 $28,833,409 Commitments and contingencies (Note H)
Redeemable convertible Series C preferred stock (25,000 shares
issued and outstanding at October 3, 2009 and December 31, 2008;
face value $1,000 per share; liquidation preference $27,295,206 and
$26,350,000 at October 3, 2009 and December 31, 2008, respectively)
$20,946,365
$17,248,593
Stockholders' deficit: Common stock; $0.01 par value,
200,000,000 shares authorized; 70,278,812 and 51,479,822 shares
issued and outstanding at October 3, 2009 and December 31, 2008,
respectively
$702,788
$514,798
Additional paid-in capital 218,894,693 182,222,762 Accumulated
deficit (225,630,062) (189,962,435) Accumulated other comprehensive
loss (1,727,476) (1,959,852) Total stockholders' deficit
$(7,760,057) $(9,184,727) Total liabilities and stockholders'
deficit $42,190,829 $36,897,275
SATCON TECHNOLOGY
CORPORATION
CONSOLIDATED STATEMENT OF
OPERATIONS
(Unaudited)
Three Months Ended Nine Months
Ended
October 3,2009
September 27,2008
October 3,2009
September 27,2008
Revenue Product revenue $ 10,040,941 $ 17,215,392 $ 31,048,409 $
36,947,201 Funded research and development and other revenue
1,637,668 1,301,362 4,682,466 6,292,490 Total revenue $ 11,678,609
$ 18,516,754 $ 35,730,875 $ 43,239,691 Cost of revenue: Cost
of product revenue $10,466,120 $ 13,869,078 $ 30,686,604 $
32,509,593 Cost of funded research and development and other
revenue 1,150,805 1,145,719 3,519,056 4,828,139 Total cost of
revenue $11,616,925 $ 15,014,797 $ 34,205,660 $ 37,337,732
Gross margin $ 61,684 $ 3,501,957 $ 1,525,215
$ 5,901,959 Operating expenses: Research and development
$2,187,554 $ 1,642,265 $6,302,978 $ 3,619,615 Selling, general and
administrative 4,884,613 4,585,771 14,228,431 11,830,775
Restructuring charge 211,267 512,609 211,267 1,119,216 Amortization
of intangibles 78,572 78,572 235,716 235,716 Total operating
expenses from continuing operations $7,362,006 $6,819,217 $
20,978,392 $ 16,805,322 Operating loss from continuing
operations $(7,300,322) $(3,317,260) $(19,453,177) $(10,903,363)
Change in fair value of warrant liabilities (305,289)
2,041,697 (3,899,623) (822,501) Other (loss) income, net 384,261
57,734 (241,329) 62,047 Interest income 2,956 56,872 8,523 197,143
Interest expense (38,919) (98,139) (259,103) (241,876) Net loss
from continuing operations $(7,257,313) $(1,259,096) $(23,844,709)
$(11,708,550) Loss from discontinued operations, net —
$(990,434) — $ (1,957,837)
Gain on sale of discontinued
operations
— 327,798 — 327,798 Net loss $(7,257,313) $(1,921,732)
$(23,844,709) $(13,338,589) Deemed dividend and accretion on
Series C preferred stock and warrants (961,257)
(1,056,093)
(2,670,277)
$ (2,987,846)
Dividend on Series C preferred stock (320,180) (10,000) (1,028,269)
(126,000) Net loss attributable to common stockholders $(8,538,750)
$(2,987,825) $(27,543,255) $(16,452,435) Net loss per
weighted average share, basic and diluted: From loss on continuing
operations attributable to common stockholders
$(0.12)
$(0.05)
$(0.47)
$(0.29) From loss on discontinued operations — $(0.02) — $(0.04)
From gain on sale of discontinued operations — $0.01 — $0.01 Net
loss attributable to common stockholders per weighted average
share, basic and diluted
$(0.12)
$(0.06)
$(0.47)
$(0.33)
Weighted average number of common shares, basic and diluted
70,239,878 51,013,182 58,831,835 50,454,300
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