Spire Corporation Reports Results for First-Quarter 2013

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 and providing engineering, procurement and construction ("EPC") integration services for solar systems and biomedical processing services, today reported revenues from continuing operations for the first-quarter ended March 31, 2013 of $3.2 million, a 57% decrease from $7.5 million for the same quarter of 2012 primarily due to a decrease in solar equipment volume.

Net loss for the first-quarter of 2013 was $2.6 million, or $0.29 per share compared with net income of $3.4 million or $0.39 per share for the first-quarter of 2012. Net loss from continuing operations was $2.6 million for the three months ended March 31, 2013, as compared to net income of $0.4 million for the first-quarter of 2012. Net income for the first-quarter of 2012 includes net income from discontinued operations, net of taxes of $3.0 million or $0.35 per share related to the Company's Semiconductor business unit, which was sold in March 2012 and accordingly was classified as discontinued operations.


Gross margin for the first-quarter of 2013 was $0.2 million, or 7% of revenue, compared to $2.0 million, or 26% of revenue for the same period in 2012.

Net cash used in operating activities was $0.8 million for the three months ended March 31, 2013, as compared to net cash used in operating activities of $3.2 million for the three months ended March 31, 2012, which includes $1.6 million of cash used in operating activities of discontinued operations. As of March 31, 2013, Spire had $2.2 million in cash and cash equivalents.

Roger G. Little, Chairman and CEO, stated, "The solar industry continued to experience a severe slowdown in manufacturing expansion driven by sustained worldwide overcapacity. Although we are seeing evidence of some growth in PV systems on a global basis, this continued oversupply and imbalance of PV modules as it relates to market demand has resulted in a dramatic reduction in demand for PV manufacturing equipment which is expected to continue until the module supply/demand disparity is resolved. As a result, there is virtually no expansion of current module manufacturers to absorb existing equipment in inventory. In addition, we are seeing many module manufacturers going out of business, resulting in a flood of used equipment on the market. The Company has developed and continues to implement significant cost reduction efforts, and is looking at opportunities to expand revenue in other solar markets, and to identify potential strategic alternatives that could mitigate the decline in revenue as a result of global economic conditions."

Mr. Little continued, "Most recently the Company was awarded a contract to install a 228 kilowatt PV system in Connecticut; the Company believes the growth potential in this vertical market can partially offset the reduction in the solar equipment segment. Additionally, a 2 megawatt PV system installed at Berkshire School in 2012 by Spire Corporation was noted as Honorable Mention for 2013 Photovoltaic Projects of Distinction Award for PV Project of the Year by Solar Energy Industries Association and Solar Energy Power Association."

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 March 31,
2013   2012

Net sales and revenues

$ 3,238   $ 7,475  

Operating loss from continuing operations

(2,602 ) (1,609 )

Total other expense, net

( 24 ) ( 29 )

Income tax benefit (provision) - continuing operations

  (2 )   1,992  

Income (loss) from continuing operations

(2,628 ) 354

Income from discontinued operations - net of tax

  --     3,011  

Net income (loss)

$ (2,628 ) $ 3,365  

Basic and diluted income (loss) per share:

From continuing operations, net of tax $ ( 0.29 ) $ 0.04
From discontinued operations, net of tax   --     0.35  
Basic and diluted income (loss) per share $ (0.29 ) $ 0.39  

Weighted average number of common and common

equivalent shares outstanding - basic

  9,080,385     8,562,633  

Weighted average number of common and common

equivalent shares outstanding - diluted

  9,080,385     8,565,487  
 
       

Summary of Unaudited Condensed Consolidated Balance Sheet
(in thousands)

 

March 31,
2013

December 31,
2012

Assets

Current assets $ 10,198 $ 12,072
Property and equipment - net 1,144 1,197
Other assets   3,724   3,356
Total assets $ 15,066 $ 16,625

Liabilities and stockholders' equity

Current liabilities $ 5,815 $ 5,456
Total long-term liabilities 4,068 3,717
Stockholders' equity   5,183   7,452
Total liabilities and stockholders' equity $ 15,066 $ 16,625
 

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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