Spire Corporation Reports Results for Third-Quarter 2012

Spire Corporation Reports Results for Third-Quarter 2012

BEDFORD, Mass.--(BUSINESS WIRE)-- Spire Corporation ("Spire") (NAS: SPIR) , a global solar company providing capital equipment and turn-key manufacturing lines to produce photovoltaic ("PV") modules, engineering, procurement and construction ("EPC") integration services for solar systems and biomedical processing services, today reported revenues from continuing operations for the third-quarter ended September 30, 2012 of $4.2 million. This represents a 48% reduction from $8.2 million for the same quarter of 2011. The decline is predominately a result of the reduced number of units shipped in the module equipment business.

Net loss for the third-quarter of 2012 was $2.3 million, or $0.27 per diluted share, compared to a net loss of $1.8 million, or $0.21 per diluted share for the third-quarter of 2011. Loss from continuing operations was $2.1 million for the three months ended September 30, 2012, as compared to a loss of $1.1 million, or an increase in the operating loss of $1.0 million for the three months ended September 30, 2011.


Revenues from continuing operations for the nine months ended September 30, 2012 were $18.3 million, a 54% decrease from $39.8 million for the same nine month period in 2011. Net loss for the nine months ended September 30, 2012 was $0.7 million, or $0.09 per diluted share, compared with a net loss of $3.1 million, or $0.37 per diluted share, for the same period in 2011.

Net cash used in operating activities was $1.5 million for the nine months ended September 30, 2012, which includes $3.7 million of cash provided by operating activities of discontinued operations, as compared to net cash used in operating activities of $3.6 million for the nine months ended September 30, 2011 which includes $1.1 million of cash used in operating activities of discontinued operations. As of September 30, 2012, the Company had unrestricted cash and cash equivalents of $5.2 million.

Roger G. Little, Chairman and CEO, stated, "The solar industry continued to experience a slowdown in manufacturing expansion driven by worldwide overcapacity as originally projected for the current fiscal year. The Company has developed several plans including cost containment efforts and potential strategic alternatives to offset the decline in business due to these global economic conditions."

Mr. Little concluded, "Based on the most recent industry marketing forecasts, the soonest we expect the PV equipment market to begin to show evidence of a recovery is in late 2013, and then increase global demand extending through at least 2017. When this happens, we believe that we are positioned to capitalize on market trends, including equipment re-tooling, the growth of regional PV module manufacturing, and PV module supply chain transactions. The Company is expecting to deliver its first Spi-Sun SimulatorTM 5600SLP utilizing enhanced blue light technology to China during the fourth quarter of fiscal year 2012. In addition to the delivery of several new Spi-Sun SimulatorTM 5600SLP during the third quarter of 2012, the Company anticipates sales volume of these systems to increase as module manufacturers replace older equipment, address measurement needs of thin films and high efficiency module technology, and expand production."

About Spire Corporation

Spire Corporation is a global solar company providing capital equipment and turn-key production lines to manufacture PV modules. For further details on the Company and its products, please visit www.spirecorp.com.

 

Spire Corporation and Subsidiaries

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts)

   

Three Months Ended
September 30,

Nine Months Ended
September 30,

  2012       2011     2012       2011  

Net sales and revenues

$

4,228

 

$

8,180

 

$

18,323

 

$

39,779

 

Operating loss from continuing operations

(2,018 ) (1,045 ) (5,414 ) (1,082 )

Total other expense, net

  (39 )   (25 )   (103 )   (92 )

Loss from continuing operations before income tax benefit (provision)

(2,057 ) (1,070 ) (5,517 ) (1,174 )

Income tax benefit (provision) - continuing operations

  24     (3 )   2,016     (18 )

Loss from continuing operations

(2,033 ) (1,073 ) (3,501 ) (1,192 )

Income (loss) from discontinued operations, net of tax

  (250 )   (697 )   2,761     (1,895 )

Net loss

$

(2,283

)

$

(1,770

)

$

(740

)

$

(3,087

)

Basic and diluted income (loss) per share:

 

 

From continuing operations, net of tax $ (0.24 ) $ (0.13 ) $ (0.41 ) $ (0.14 )

From discontinued operations, net of tax

  (0.03 )   (0.08 )   0.32     (0.23 )
Basic and diluted loss per share $ (0.27 ) $ (0.21 ) $ (0.09 ) $ (0.37 )

Weighted average number of common and common equivalent shares outstanding - basic and diluted

  8,562,633    

8,362,633

   

8,562,633

   

8,361,891

 
 
 

Summary of Unaudited Condensed Consolidated Balance Sheets

(in thousands)

 
 

September 30,
2012

 

December 31,
2011

Assets

Current assets $ 13,971 $ 17,636
Property and equipment, net 1,331 1,354
Other assets   3,084   5,188

Total assets

$ 18,386 $ 24,178
 

Liabilities and stockholders' equity

Current liabilities $ 6,620 $ 11,936
Long-term liabilities 3,418 3,532
Stockholders' equity   8,348   8,710
Total liabilities and stockholders' equity $ 18,386 $ 24,178
 

Certain matters described in this press release including those relating to Spire's prospects for growth constitute forward-looking statements under the federal securities laws. The discussion of forward-looking information requires management of the Company to make certain estimates and assumptions regarding the Company's strategic duration and the effect of such plans on the Company's financial results. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risk of dependence on market growth, competition and dependence on government agencies and other third parties for funding contract research and services, as well as other factors described in the Company's Form 10-K and other periodic reports filed with the Securities and Exchange Commission. Forward-looking statements contained in the 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 undertakes no obligation and expressly disclaims any duty to update such statements.



Spire Corporation
Robert S. Lieberman, 781-275-6000
CFO & Treasurer

KEYWORDS:   United States  North America  Massachusetts

INDUSTRY KEYWORDS:

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