BOSTON–(BUSINESS WIRE)–May. 9, 2012–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 first quarter endedMarch 31, 2012.
Revenue for the first quarter of 2012 was$24.3 million, compared with revenue of$36.0 millionin the fourth quarter of 2011, reflecting the anticipated seasonal slowdown in installations during the winter months. During the quarter, the company shipped 98 MWs of its industry-leading PowerGate® Plus, Prism® Platform, and Equinox® solutions.North Americacontinued to be the company’s strongest performing region in Q1, representing 96% of total revenue and megawatts shipped.
Gross margin for the quarter was 1%, compared with -64% in the fourth quarter of 2011. The company’s gross margin performance was impacted by seasonally lower sales volumes and the closing of its Canadian manufacturing facility, whereSatcontransferred its manufacturing to contract manufacturers inChinaandCanada.
Bookings for the first quarter were approximately$45.6 million, including$3.1 millionin service and extended warranty, an increase of approximately 134% from the fourth quarter of 2011 and 29% from the first quarter of 2011. In addition, the first quarter of 2012 was the company’s most successful bookings period in four quarters, with a book-to-bill ratio of 1.9:1.
“During the first quarter, we made significant progress on our strategic initiative and operating plan,” saidSteve Rhoades, Satcon’s President and Chief Executive Officer. “We improved our operational efficiency by reducing costs of our central inverter and MV platform product lines, and moved to a variable, contract manufacturing model with the closure of ourCanadafacility. We also strengthened our balance sheet and further reduced our working capital, while paying down a significant portion of our short- and long-term debt. These actions have strengthened our cash flow position and have provided sufficient liquidity to meet our obligations and pursue our long-term growth strategy.”
“We expect Q2 revenue to be between$24 million and $28 million, and gross margin to be in the mid- to high-teens,” concluded Rhoades.
Conference Call Reminder
The company will hold a conference call to review its financial results and business highlights today,May 9, 2012at5:00 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. andCanada) 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.
Satcon Technology Corporationis 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, Satconhas 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.
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. Forward looking statements contained in this press release include, without limitation, the company’s expectations (i) that second-quarter 2012 revenue will be between$24 million and $28 million; (ii) that gross margin will be in the mid-to high-teens; and (iii) regarding its future prospects. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company’s expectation. Additional information concerning risk factors is contained from time to time in the company’sSECfilings, including its Annual Report on Form 10-K and other periodic reports filed with theSEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release.
|SATCON TECHNOLOGY CORPORATIONCONSOLIDATED BALANCE SHEETS
|Cash and cash equivalents||$||15,916,614||$||21,586,497|
|Accounts receivable, net of allowances of $3,400,492 and $2,231,616 at March 31, 2012 and December 31, 2011, respectively||34,087,346||46,082,592|
|Prepaid expenses and other current assets||2,085,174||2,468,202|
|Total current assets||98,218,660||124,188,707|
|Property and equipment, net||10,565,644||11,091,910|
|Other long-term assets||576,990||676,850|
|LIABILITIES AND STOCKHOLDERS’ DEFICIT|
|Line of credit||$||20,487,546||$||34,675,000|
|Accrued payroll and payroll related expenses||2,142,444||3,011,981|
|Other accrued expenses||7,473,788||6,959,197|
|Accrued restructuring costs||896,285||1,543,830|
|Note payable, current portion, net of discount of $273,796 and $320,592 at March 31, 2012 and December 31, 2011, respectively||4,093,930||3,912,600|
|Current portion of subordinated convertible note||10,360,000||12,369,336|
|Current portion of deferred revenue||3,460,394||6,015,235|
|Total current liabilities||103,954,866||120,442,397|
|Note payable, net of current portion and discount of $71,275 and $120,931 at March 31, 2012 and December 31, 2011, respectively||4,010,117||5,104,157|
|Subordinated convertible note, net of current portion||—||5,870,664|
|Deferred revenue, net of current portion||27,194,160||25,525,032|
|Other long-term liabilities||715,076||709,986|
|Commitments and contingencies|
|Preferred stock; $0.01 par value 1,000,000 shares authorized, 0 shares issued and outstanding at March 31, 2012 and December 31, 2011||—||—|
|Common stock; $0.01 par value, 200,000,000 shares authorized; 135,125,036 and 121,803,656 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively||1,351,251||1,218,037|
|Additional paid-in capital||314,109,889||305,310,085|
|Accumulated other comprehensive loss||(1,429,568||)||(1,429,568||)|
|Total stockholders’ deficit||(26,562,925||)||(21,826,299||)|
|Total liabilities and stockholders’ deficit||$||109,361,294||$||135,957,467|
|SATCON TECHNOLOGY CORPORATIONCONSOLIDATED STATEMENT OF OPERATIONS
|Three Months Ended|
|March 31, 2012||March 31,2011|
|Cost of product revenue||24,127,818||47,132,525|
|Research and development||3,236,226||6,136,333|
|Selling, general and administrative||9,975,174||10,223,313|
|Total operating expenses||13,503,621||16,359,646|
|Change in fair value of convertible note and warrants||450,041||123,561|
|Other income (expense), net||116,567||(199,856||)|
|Net loss before provision for income taxes||(13,669,644||)||(2,138,627||)|
|Provision for income taxes||—||—|
|Net loss per weighted average share, basic and diluted||$||(0.11||)||$||(0.02||)|
|Weighted average number of common shares, basic and diluted||128,096,372||118,726,322|
Source:Satcon Technology Corporation
Satcon Technology Corporation
Leah Gibson, 617-910-5515
Director of Investor Relations