SatCon Technology Corporation Announces Fourth Quarter and Year-End 2001 Results.Business/Technology Editors CAMBRIDGE Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. , Mass.--(BUSINESS WIRE)--Dec. 11, 2001 Revenues for the year increase by 34% to a record $41.7 million 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 and energy management products, today announced fourth quarter financial results for the period ended September September: see month. 30, 2001. Revenue for the year increased by $10.6 million, or 34% to a record level of $41.7 million versus $31.1 million for fiscal year 2000. Fiscal year 2001 represented the second consecutive year of record revenue growth for the Company with revenue having grown at a compound annual rate of 64% since fiscal year 1999. "Our strong revenue growth for the year continues to demonstrate the increasing demand for our enabling products for the power and energy management marketplace," said David Eisenhaure, president and chief executive officer of SatCon. "Despite difficult economic conditions, all of our business units produced solid revenue growth for the year. We expect this growth to continue in 2002 as the economy improves and we expand our market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" with existing products and the introduction of new products such as our StarSine(TM) MegaPower UPS system." For the Power Systems business unit, revenue for fiscal year 2001 increased significantly by 43% to $20.2 million with a slight 5% decline to $5.5 million for the fourth quarter. For the year, Power Systems revenue growth was driven by increased sales of industrial automation equipment, machine tool motors, high power electronics conversion and conditioning systems and from the inclusion of $457,000 of revenue from the acquisition of Inverpower Controls. For fiscal 2001, revenue for the Semiconductor Products business unit increased substantially by 28% to $10.6 million with fourth quarter revenue decreasing 26% to $1.7 million with a temporary delay in shipments to a major customer being offset by a surge in military orders. A solid increase in sales of radio frequency semiconductor products to military customers accounted for much of the increase in sales for the year. For the Applied Technology business unit, revenue for the year increased by 26% to $10.9 million with an increase of 32% to $2.7 million for the fourth quarter. Revenue increases were driven primarily by product development contracts aimed at high power electronics such as those for the DD21 "all-electric" ship, the advanced integrated power module for hybrid electric automobiles electric automobile Battery-powered motor vehicle. Originating in the 1880s, electric cars were used for private passenger, truck, and bus transportation in cities, where their low speeds and limited battery range were not drawbacks, and the cars became popular for their and other high efficiency machines.
A comparison of operating segment revenue for the year ended September
30, 2001 follows:
(In $000's)
Three months ended Year Ended
Sept 30, Sept 30,
Business Unit 2001 2000 2001 2000
Power Systems $5,543 $5,843 $20,164 $14,099
$14,099
Semiconductor Products 1,747 2,361 10,616 8,297
Applied Technology 2,725 2,057 10,904 8,659
Total Revenue $10,015 $10,261 $41,684 $31,055
The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the fourth quarter was $6.9 million, or $.42 per share, and included $1.8 million, or $.11 per share of non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) , as compared to an operating loss of $2.2 million, or $.16 per share, in the fourth quarter of 2000. The net loss attributable to common stockholders for the fourth quarter of 2001 was $9.3 million, or $.56 per share, and included non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. totaling $2.6 million, or $.16 per share, resulting from a $1.3 million warrant valuation adjustment and a $1.4 million equity loss from SatCon's Beacon Beacon, city (1990 pop. 13,243), Dutchess co., SE N.Y., on the E bank of the Hudson River; settled 1663, inc. in 1913 when Fishkill Landing and Matteawan villages were united. Power investment. Net loss attributable to common stockholders for the fourth quarter of 2000 was $2.1 million or $.15 per share. The operating loss for the year ended September 30, 2001 was $16.2 million, or $1.10 per share, and included $5.0 million, or $.34 per share, of non-cash expenses as compared to an operating loss of $9.5 million, or $.75 per share for fiscal 2000. The operating loss for the year also included a write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of public offering costs of $1.4 million, or $.10 per share. The net loss attributable to common stockholders for the year ended September 30, 2001 was $24.3 million, or $1.65 per share, and included $8.7 million of non-cash charges resulting from a $1.6 million warrant valuation adjustment, a $5.1 million equity loss in Beacon Power and a $1.9 million charge for the accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the of a convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". discount. Net loss attributable to common stockholders for the year 2000 was $13.0 million or $1.03 per share. On September 28, 2001, SatCon distributed 5,000,000 shares of Beacon Power common stock to its shareholders and now owns 4.7 million shares or 11% of Beacon. SatCon is no longer required to record in the Statement of Operations See Income statement. its share of Beacon Power and the investment is now carried on SatCon's books at fair value with any unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. or losses being included as a component of stockholders equity. At September 30, 2001 the Company had $20.9 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 . For the year ended 2001, operating activities used $10.2 million, capital expenditures used $2.2 million and $23.4 million was raised from the issuance of common stock. David Eisenhaure, SatCon's President and Chief Executive Officer, said "The past fiscal year was a very busy and productive time for the Company. We grew our revenue by 34% to a record $41.7 million, which represents the second consecutive year of strong revenue growth. In fact, fueled by new product introductions and acquisitions, our revenue has grown by a compound annual growth rate of 64% since 1999, with acquisitions accounting for 25% of that growth and organic growth totaling 75%. In June June: see month. 2001 we completed the acquisition of Inverpower Controls, Ltd, which complemented our product offering by adding a line of high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. digital controls, high power conversion electronics, AC and DC power supplies, static transfer switches and voltage regulators An electronic circuit used to maintain a level amount of voltage in an electrical line. It eliminates power surges, spikes and brownouts, which can cause harm to sensitive electronics. A voltage regulator "module" (VRM) is a voltage regulator in a replaceable unit. See surge suppression and UPS. , and a Smart Predictive Line Controller that allows on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. power generation to be sold back to the utility grid. We also believe that the acquisition of Inverpower will contribute more significantly to our revenue growth in fiscal 2002." "During 2001 we also introduced a number of new products that we believe have significant future potential. A major opportunity for us is the introduction of our StarSine(TM) MegaPower UPS system for the back up power and power quality markets. These systems have power ratings ranging from 250kw to 2 megawatts. We recently received two orders totaling $2 million for our high power StarSine(TM) MegaPower UPS systems. During 2001 we enhanced our product offering for the distributed power generation market with the shipment of a 250kw power conversion and conditioning system to Siemens Westinghouse Siemens Power Generation, Inc (SPGI) is a power generation company based in the United States. Run by the German Siemens AG Corporation, Formerly Siemens Westinghouse, SPGI, was formed by the acquisition of the Westinghouse Electric Corporation by the Siemens power generation that will convert, control and manage the flow of electricity for Siemens' solid oxide fuel cell A Solid oxide fuel cell (SOFC) is an electrochemical conversion device that produces electricity directly from fuel. Fuel cells are characterized by their electrolyte material and, as the name implies, the SOFC has a solid oxide, or ceramic, electrolyte. system. In addition we delivered a 250kw MegaVerter(TM) power control system for demonstration purposes to Fuel Cell Energy. The MegaVerter(TM) was installed in a molten carbonate fuel cell Molten-carbonate fuel cells (MCFCs) are high-temperature fuel cells, that operate at temperatures of 600ºC and above. They have the highest efficiencies of any type fuel cell, including solid oxide fuel cells, proton exchange membrane fuel cells and phosphoric acid fuel at their Danbury Danbury (dăn`bĕr'ē, –bərē), city (1990 pop. 65,585), Fairfield co., SW Conn.; settled 1685, inc. as a city 1889. facility." "For the residential distributed power market, we continued to improve our PowerGate(TM) power conversion product in terms of design for manufacturability and cost reduction and recently received an order from H Power to deliver 23 PowerGate(TM) systems. We have also developed a new line of power conversion electronics, with embedded Inserted into. See embedded system. digital controllers, for advanced energy storage systems and recently received a $1 million order from Powercell Corporation to provide these power conversion systems for their advanced battery energy storage system. We recently installed a similar system for Alcatel's lithium ion A rechargeable battery technology introduced in 1991 that provides greater charge per pound than nickel metal hydride. In 1993, Toshiba introduced the first notebook in the U.S. with a Li-ion battery. battery energy storage system." "In 2001, we also introduced a new line of high power aluminum nitride nitride Any of a class of chemical compounds in which nitrogen is combined with an element of similar or lower electronegativity, such as boron, silicon, and most metals. Some examples of nitrides include boron nitride, calcium nitride, aluminum nitride, and cyanogen. RF (radio frequency) terminations used in secure military communication networks and satellite systems. We also worked on the development of a line of high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" motors for auxiliary auxiliary In grammar, a verb that is subordinate to the main lexical verb in a clause. Auxiliaries can convey distinctions of tense, aspect, mood, person, and number. uses, such as fuel pumps Fuel pump A mechanical or electrical pump for drawing fuel from a storage tank and forcing it to an engine or furnace. The type of pump chosen for a given fuel depends to a great extent on the volatility of the liquid to be pumped. , in fuel cell hybrid-electric vehicles. We are also developing these high-performance motors for use in commercial and residential fuel cell power generation systems. We also received $3 million in development revenue for high performance motors, as well as electronics and control systems for the DD21 "all electric" ship, and, in September, delivered a power conversion and control system for a military hybrid-electric vehicle." "All of these new product offerings take advantage of SatCon's core expertise in power electronics, advanced digital controls, magnetics and semiconductor design," concluded Eisenhaure, "and we expect that these efforts will position the company for continued revenue growth in the future." 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 Communicating information, including data, text, pictures, voice and video over long distance. See communications. 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 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. , chief financial officer, will host an investor conference call today, December 11, at 11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT to review the company's financial results and operations for the fiscal year 2001. 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:
EST abbr. electroshock therapy , Friday, December 14, 2001. Listeners should call 320/365-3844, domestic and international, and use reservation number 616773. 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 ("the company") 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 the company's business and industry and difficulties in developing technology enhancements. 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 the company's filings including, but not limited to, the company's annual report on form 10K and quarterly reports on form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and 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 Year ended
September 30, September 30,
2001 2000 2001 2000
(Unaudited)
Product revenue $ 7,290 $ 8,159 $ 30,780 $ 22,427
Funded research
and development
revenue 2,725 2,102 10,904 8,628
Total revenue 10,015 10,261 41,684 31,055
Operating
expenses:
Cost of product
revenue 8,744 6,583 27,828 19,069
Research and
development
expenses:
Funded research
and
development
expenses 1,648 1,415 7,446 6,848
Unfunded
research and
development
expenses 1,918 1,177 6,229 3,453
Total research
and
development
expenses 3,566 2,592 13,675 10,301
Selling, general
and
administrative
expenses 4,185 2,963 13,593 9,970
Write-off of
public offering
costs -- -- 1,421 --
Amortization of
intangibles 394 322 1,362 1,217
Total operating
expenses 16,889 12,460 57,879 40,557
Operating loss (6,874) (2,199) (16,195) (9,502)
Unrealized gain/
(loss) on
warrants (1,255) -- (1,480) --
Interest income/
(expense), net 241 185 584 460
Net loss before
loss from
Beacon Power
Corporation and
cumulative
effect of
accounting
change (7,888) (2,014) (17,091) (9,042)
Loss from Beacon
Power
Corporation (1,368) (72) (5,064) (899)
Net loss before
cumulative
effect of
accounting
change ($ 9,256) ($ 2,086) ($22,155) ($ 9,941)
Cumulative effect
of accounting
change -- -- (168) --
Net loss ($ 9,256) ($ 2,086) ($22,323) ($ 9,941)
Accretion of
redeemable
convertible
preferred stock
discount -- -- -- (3,106)
Cumulative effect
of accounting
change -- -- (1,941) --
Net loss
attributable to
common
stockholders ($ 9,256) ($ 2,086) ($24,264) ($13,047)
Earnings per
share, basic and
diluted:
Net loss before
cumulative effect
of accounting
changes ($ 0.56) ($ 0.15) ($ 1.51) ($ 1.03)
Cumulative effect
of accounting
changes $ 0.00 $ 0.00 ($ 0.14) $ 0.00
Net loss
attributable to
common
stockholders ($ 0.56) ($ 0.15) ($ 1.65) ($ 1.03)
Shares used for
computing basic
and diluted EPS 16,473 13,685 14,666 12,630
SatCon Technology Corporation
($ in thousands)
Sept. 30, Sept. 30,
Consolidated Balance Sheets as of: 2001 2000
ASSETS
Current assets:
Cash and marketable securities $ 20,924 $ 8,814
Accounts receivable, net 8,637 7,496
Unbilled contract costs, net 578 825
Inventory 11,414 8,002
Prepaid expenses and other current
assets 914 615
Total current assets 42,467 25,752
Property and equipment 12,417 9,861
Accumulated depreciation (4,638) (3,604)
Property and equipment, net 7,779 6,257
Intangibles 13,518 11,142
Accumulated amortization (2,936) (2,062)
Intangibles, net 10,582 9,080
Investment in Beacon Power
Corporation 7,153 --
Warrant to purchase Beacon Power
common stock 201 --
Warrant to purchase MTI common stock 375 2,474
Other long-term assets 219 925
Total assets $ 68,776 $ 44,488
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt $ 332 $ 17
Accounts payable 7,420 3,076
Accrued expenses 3,709 2,744
Deferred revenue 1,381 1,525
Total current liabilities 12,842 7,362
Long-term liabilities, net of
current portion 1,189 214
Contingent obligation to Class D
shareholders of Beacon Power -- 5,794
Contingent obligation to warrant
holders 234 --
Stockholders' equity:
Common stock; $.01 par value,
50,000,000 shares authorized;
16,539,597 and 13,841,185
shares issued in 2001 and 2000 165 138
Additional paid-in capital 114,594 72,499
Accumulated deficit and other
comprehensive loss (60,248) (41,269)
Treasury stock, at cost; none
and 44,500 shares in 2001
and 2000 -- (250)
Total stockholders' equity 54,511 31,118
Total liabilities and stockholders' equity $ 68,776 $ 44,488
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion