SatCon Technology Corporation Announces First Quarter 2002 Results.Business/Technology Editors CAMBRIDGE, Mass.--(BUSINESS WIRE)--Feb. 13, 2002 SatCon Technology Corporation(R) (Nasdaq:SATC SATC Sex and the City (HBO series) SATC Software Assurance Technology Center (NASA) SATC Sexual Assault Treatment Center (Broward County, Florida) ), a leader in power products, today announced financial results for its fiscal 2002 first quarter, which ended December 29, 2001. Revenue for the first quarter decreased 12% to $8.3 million compared to $9.5 million in the same period last year. The net loss for the first quarter of fiscal 2002 was $5.4 million, or $.33 per share, as compared to net loss of $4.0 million, or $.29 per share, in the first quarter of 2001. "As we prepare ourselves for the future, this was an important quarter for us," said David Eisenhaure, president and chief executive officer. "We made significant investments, primarily in facility upgrades and in the manufacturing and commercialization of our StarSine rotary Rotary can refer to:
A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz that confidence."
A comparison of operating segment revenue for the first quarter
follows:
(In $000's)
First Quarter
Business Unit 2002 2001
Power Systems $3,695 $4,907
Semiconductor Products 2,429 2,516
Applied Technology 2,217 2,071
Total Revenue $8,341 $9,494
Gross margin from product sales for the first quarter of 2002 was 3% versus 18% in the first quarter of the prior year. The decrease in the gross margin percentage from product revenue is primarily due to a decrease in product revenue and, to a lesser degree, higher overhead costs overhead costs see fixed costs. associated with the scale up of manufacturing capacity for the production of UPS systems. SatCon expects the gross margin percentage from product revenue to improve for the balance of the year due to expected increased sales and a higher level of factory utilization. The gross margin from funded research and development revenue decreased to 23% in the first quarter versus 31% in the first quarter of the prior year. The decrease in the gross margin from funded research and development contracts is due to increased material content for manufacturing prototypes as opposed to contracts that involve only design and engineering services. SatCon expects the gross margin percentage from funded research and development revenue to increase to more traditional levels for the balance of the year. Unfunded research and development expenses for the first quarter of fiscal 2002 totaled $2.0 million compared to $1.2 million in the first quarter of the prior year. The increase in unfunded research and development expenses is attributable to cost incurred in the development of UPS systems and digital power electronic systems for advanced flow batteries. SatCon expects the quarterly level of spending on unfunded research and development to decrease over the balance of the year because these product development programs are in the final stages of completion. Selling, general and administrative expenses totaled $3.9 million for the first quarter of fiscal 2002 versus $2.7 million in the first quarter of the prior year. The inclusion of selling, general and administrative expenses from the acquisition of Inverpower Controls accounted for $425,000 of the increase and the balance is primarily attributable to the expansion of SatCon's sales and marketing organization. SatCon used $7.9 million of cash in the first quarter of 2002 and had $13.0 million in cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has as of December 29, 2001. SatCon used $6.1 million of cash for operations and spent $1.6 million on capital expenditures. Most of the spending on capital expenditures was attributable to the scale up of the UPS manufacturing facility in Worcester, MA. SatCon estimates that it's quarterly capital expenditures will decline substantially over the balance of the year because the construction of the UPS manufacturing facility is almost complete. SatCon estimates that approximately $1.5 million will be spent on additional capital expenditures in total over the next three quarters. "From a revenue standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the ," continued Eisenhaure, "we experienced the effects of some slow down in the semiconductor and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. markets. In addition, we deferred some of our shaker Shaker Member of the United Society of Believers in Christ's Second Appearing, a celibate millenarian sect. Derived from a branch of the radical English Quakers (see Society of Friends), the movement was brought to the U.S. test system revenues to next quarter. However, we also had some important operations accomplishments over the quarter, particularly in the establishment of manufacturing processes and the installation of manufacturing equipment in our Power Systems facility in Worcester." "We have largely consolidated the manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. from our Magmotor operations in Worcester, Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. and our Ling ling: see cod. Electronics facility in Anaheim, California “Anaheim” redirects here. For Annaheim, see Annaheim, Saskatchewan.Anaheim is a city in Orange County, California, located 28 miles southeast of Los Angeles. into our new upgraded Worcester facility where we will be manufacturing our StarSine Power Conditioning Systems (PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. ) and StarSine Uninterruptible Power Supply See UPS. (hardware) Uninterruptible Power Supply - (UPS) A battery powered power supply unit that is guaranteed to provide power to a computer in the event of interruptions in the incoming mains electrical power. (UPS) Systems. We have made some important investments in equipment and systems that should enable us to realize manufacturing efficiencies as we begin to manufacture these products in volume. We continue to believe, based on our marketing efforts that the UPS and power quality markets are strong and growing and that our systems offer competitive advantages over existing commercially available systems. Based on that, we have also increased our sales and marketing staff to support the launch of our UPS system as well as to increase sales in our PCS and Inverpower brand power electronics. We have also taken steps to establish a UPS distributor network and are having discussions with major corporations to form strategic distributor alliances." "Despite a minor slow-down in Magmotor brand motors and MagLev systems, we were pleased to see our Inverpower brand products contribute to revenues. We also received an order for our Smart Predictive Line Controllers (SPLC SPLC Southern Poverty Law Center SPLC Student Press Law Center (nonprofit organization dedicated to providing legal help and information to the student media and journalism educators) SPLC Splice SPLC Standard Point Location Code ) to be installed at Falcondo, a firm in the Dominican Republic Dominican Republic (dəmĭn`ĭkən), republic (2005 est. pop. 8,950,000), 18,700 sq mi (48,442 sq km), West Indies, on the eastern two thirds of the island of Hispaniola. The capital and largest city is Santo Domingo. . The SPLC's could help them generate revenue from excess electrical capacity Noun 1. electrical capacity - an electrical phenomenon whereby an electric charge is stored capacitance, capacity electrical phenomenon - a physical phenomenon involving electricity . We are also pleased to be supplying aircraft power systems for today's sophisticated fighter aircraft fighter aircraft Aircraft designed primarily to secure control of essential airspace by destroying enemy aircraft in combat. Designed for high speed and maneuverability, they are armed with weapons capable of striking other aircraft in flight. and power conditioning systems to SAFT SAFT Safety SAFT Simple Asynchronous File Transfer SAFT Statistical Associating Fluid Theory SAFT Synthetic Aperture Focusing Technique America, Inc., a subsidiary of Alcatel, for an uninterruptible power supply system that also includes a distributed power generation source." "We were also proud to be a part of a collaboration Working together on a project. See collaborative software. with Verizon, Nuvera Nuvera™ Gynecology An oral 17-beta estradiol/norethindrone acetate for managing postmenopausal Sx. See Menopause. Fuel Cells and KeySpan Energy to install a working fuel cell in a Verizon location to support a distributed power generation demonstration. It is the first fuel cell powered telecommunications site in the nation. We were also pleased to be chosen by Fuel Cell Energy to supply the company with what is called "the electrical balance of plant" for several of their Direct (DFC DFC - A dataflow language. ["Data Flow Language DFC: Design and Implementation", S. Toshio et al, Systems and Computers in Japan, 20(6):1- 10 (Jun 1989)]. (R)) fuel cells. The electrical balance of plant includes the electronics and controls for the fuel cell system. The StarSine Power Conditioning Systems ordered by FuelCell Energy are designed for its sub-megawatt and megawatt meg·a·watt n. Abbr. MW One million watts. meg  a·watt class
power plants.""These are important steps in our strategy for growth in our Power Systems business unit. As we announced yesterday, in order to help ensure that this strategy is realized we made a management change and asked Sean Moran Sean Farrell Moran (born June 5, 1973 in Aurora, Colorado) was an American football defensive lineman in the National Football League for the Buffalo Bills, St. Louis Rams, and the San Francisco 49ers. He played college football at Colorado State University. to take the financial lead in managing the financial operations of the Power Systems business unit. Having been here for two years, Sean is familiar with our strategy and goals and can provide financial guidance to the Power Systems business unit as we move forward. We were fortunate to find Ralph Norwood Ralph E. Norwood (January 23, 1966 - November 24, 1989) was an American football offensive tackle. He played for the Atlanta Falcons for only one season. He was killed in an automobile accident. , who had the appropriate experience and skill base to replace Sean in the CFO See Chief Financial Officer. position. Ralph's experience with both large and entrepreneurial en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. businesses and in both technology and manufacturing operations will be of great benefit to us. He will be working with the financial markets, and with operations to develop and refine strategies to promote growth and increase shareholder value, and we are looking forward to his contributions to the future success of SatCon." "In addition, we appointed Jeff Postlethwait as the new vice-president and general manager of our Semiconductor Products division. Jeff has an extensive background in operations, manufacturing engineering Manufacturing engineering Engineering activities involved in the creation and operation of the technical and economic processes that convert raw materials, energy, and purchased items into components for sale to other manufacturers or into end products for , product development and sales of microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. products. He held national sales and other management and engineering positions at Micro Networks, General Electric and Rockwell International Rockwell International was the ultimate incarnation of a series of companies under the sphere of influence of Willard Rockwell, who had made his fortune after the invention and successful launch of a new bearing system for truck axles in 1919. . We think his background matches well with our strategy to manufacture quality components for our Power Systems business while maintaining a high quality, high reliability line of microelectronics products for the telecommunications, medical, aerospace and transportation markets. We look forward to Jeff's manufacturing, operations and sales background helping to position us for growth." "Also, our Semiconductor Products business was ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 certified See certification. in the first quarter. The division met its certification requirements during last fiscal year and final recommendation for registration was submitted in November of 2001. In addition, SatCon Power Systems in Worcester and SatCon Applied Technology are also in the certification process. SatCon Power Systems Canada, Ltd. is already ISO9001 certified with UL and CE qualification as well. Becoming ISO9001 certified is an important step in our corporate growth as a manufacturer of power products." "In our Applied Technology division we have been working diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d to support the Power Systems business unit on the power electronics systems for Fuel Cell Energy and Nuvera Fuel Cell. In addition we were able to secure the next level of funding for the Integrated Power Systems for the Navy's `all-electric' ship. It is the objective of the Applied Technology group to continue to fill the pipeline with new products and technology that can support our continued growth." "As a closing note, we will conduct our annual meeting on March 13, 2002 at our new Power Systems facility in Worcester, Massachusetts. We will begin with an informal tour of the facility at 9:00 a.m. followed by the formal part of the meeting beginning at 10:00 a.m. followed by a second set of tours. We invite you all to attend the meeting, view some of our power systems products and listen to our review of the year and future plans." About SatCon Technology Corporation SatCon Technology Corporation manufactures and sells power and energy management products for digital power markets. SatCon has three business units: SatCon Power Systems manufactures and sells power systems for distributed power generation, power quality and factory automation. SatCon Semiconductor Products manufactures and sells power chip components; power switches; RF devices; amplifiers; telecommunications electronics; and hybrid microcircuits An electronic circuit composed of different types of integrated circuits and discrete components, mounted on a ceramic base. Used in military and communications applications, it is especially suited for building custom analog circuits including A/D and D/A converters, amplifiers and for industrial, medical, and aerospace applications. SatCon Applied Technology develops advanced technology in digital power electronics, high-efficiency machines and control systems with the strategy of transitioning those technologies into products. For further information, please visit the SatCon Web site at www.satcon.com. Investor Conference Call David Eisenhaure, SatCon president and chief executive officer; Michael Turmelle, chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. ; and Ralph Norwood, chief financial officer, will host an investor conference call today, February 13, at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy to review SatCon's financial results and operations for the first quarter of fiscal year 2002. The call will be open to all interested investors through a live audio Web broadcast accessible at the SatCon corporate Web site, www.satcon.com, and at www.streetevents.com. For those unable to listen to the live broadcast, the call will be archived on the above-mentioned sites. A telephonic playback Playback could mean:
Statements made in this document that are not historical facts or which apply prospectively are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. Among the important factors that could cause SatCon Technology Corporation's actual circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , or results, to differ materially from those implied by such forward-looking statements include market conditions, the inability to successfully introduce any of the new products discussed, developments in SatCon's business and industry and difficulties in developing technology enhancements. In addition, any forward-looking statements represent SatCon's estimates only as of the date of this press release and should not be relied upon as representing SatCon's estimates as of any later date. While SatCon may elect to update its forward-looking statements, it specifically disclaims any obligation to do so, even if SatCon's estimates change. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in SatCon's filings including, but not limited to, the Annual Report on Form 10K and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . Copies of the filings are available from SatCon and the Securities and Exchange Commission.
SatCon Technology Corporation
Consolidated Statements of Operations
($ in thousands, except per share data)
Three months ended
December 29, 2001 December 31, 2000
(Unaudited)
Product revenue $ 6,124 $ 7,423
Funded research and development revenue 2,217 2,071
Total revenue 8,341 9,494
Operating expenses:
Cost of product revenue 5,937 6,098
Research and development expenses:
Funded research and
development expenses 1,717 1,439
Unfunded research and
development expenses 1,973 1,239
Total research and
development expenses 3,690 2,678
Selling, general and
administrative expenses 3,862 2,744
Amortization of intangibles 149 323
Total operating expenses 13,638 11,843
Operating loss (5,297) (2,349)
Unrealized gain/(loss) on warrants (250) (206)
Interest income/(expense), net 150 113
Net loss before loss from
Beacon Power Corporation and
cumulative effect of
accounting change (5,397) (2,442)
Loss from Beacon Power Corporation - (549)
Net loss before cumulative effect
of accounting change (5,397) (2,991)
Cumulative effect of accounting change - (1,022)
Net loss ($5,397) ($4,013)
Earnings per share, basic and diluted:
Net loss before cumulative effect of
accounting changes ($0.33) ($0.22)
Cumulative effect of accounting
changes $ 0.00 ($0.07)
Net loss attributable to common
stockholders ($0.33) ($0.29)
Shares used for computing basic and
diluted EPS 16,540 13,828
SatCon Technology Corporation
($ in thousands)
December 29, September 30,
Consolidated Balance Sheets as of: 2001 2001
ASSETS
Current assets:
Cash and marketable securities $13,024 $20,924
Accounts receivable, net 7,944 8,637
Unbilled contract costs, net 500 578
Inventory 13,149 11,414
Prepaid expenses and other current
assets 735 914
Total current assets 35,352 42,467
Property and equipment 14,019 12,417
Accumulated depreciation (5,015) (4,638)
Property and equipment, net 9,004 7,779
Goodwill and Intangibles 13,488 13,518
Accumulated amortization (3,087) (2,936)
Goodwill and Intangibles, net 10,401 10,582
Investment in Beacon Power Corporation 5,271 7,153
Warrant to purchase Beacon Power common stock 154 201
Warrant to purchase MTI common stock 131 375
Other long-term assets 222 219
Total assets $60,535 $68,776
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt $ 269 $ 332
Accounts payable 6,777 7,420
Accrued expenses 3,100 3,709
Deferred revenue 1,985 1,381
Total current liabilities 12,131 12,842
Long-term liabilities, net of current portion 1,105 1,189
Contingent obligation to Class D
shareholders of Beacon Power - -
Contingent obligation to warrant holders - 234
Stockholders' equity:
Common stock; $.01 par value,
50,000,000 shares authorized;
16,539,597 and 16,539,597
shares issued in 2002 and 2001 165 165
Additional paid-in capital 114,786 114,594
Accumulated deficit and other
comprehensive loss (67,652) (60,248)
Total stockholders' equity 47,299 54,511
Total liabilities and
stockholders' equity $60,535 $68,776
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion