SatCon Technology Posts 108% Increase in Revenue to $9.5 Million for Fiscal 2001 First Quarter.Business/Technology Editors CAMBRIDGE, Mass.--(BUSINESS WIRE)--Feb. 7, 2001 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 financial results for its fiscal 2001 first quarter ended December 31, 2000. Revenue for the first quarter rose 108% to $9.5 million compared with $4.6 million in the same period last year. Net loss for the quarter ended December 31, 2000, excluding an unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on $2.9 million on an investment, was $2.8 million, equal to $.20 per share, compared with $3.1 million, or $.29 per share, in the fiscal 2000 first quarter. During the quarter, SatCon adopted Statement of Financial Accounting Standards No. 133 that requires the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the warrants it holds to purchase 300,000 shares of Mechanical Technology Incorporated common stock to be adjusted to market value. As a result, SatCon recorded an unrealized loss of $2.9 million, or $.21 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, on this investment. Including this charge, net loss for the fiscal first quarter was $5.6 million, or $.41 per share. The net 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 fiscal 2001 first quarter improved to $2.3 million from $2.4 million in the first quarter of fiscal 2000. First quarter revenue for the Electronics Products segment increased 44% to $2.6 million over the prior year's period. The Motion Control Products segment revenue rose 257% to $4.8 million. Within this segment, revenue from Ling ling: see cod. Electronics increased 215% to $2.5 million, while MagMotor revenue increased 196% to $2.3 million. As Ling Electronics was acquired on October 21, 1999, revenue for the first 21 days of October 1999 was not included in SatCon's results for the quarter ended December 31, 1999. Revenue from the Technology Center, the Funded Research and Development segment, was up 48% to $2.1 million.
For the three months ended December 31, 2000, the breakdown of revenue
by operating segment is as follows:
(In thousands)
Three months ended
December 31,
2000 1999
Electronics Products $2,595 $1,808
Motion Control Products 4,828 1,353
Funded Research and Development 2,071 1,395
Total Revenue $9,494 $4,556
"We are pleased to kick off the 2001 fiscal year with growth in each of our business segments and first quarter revenue that doubled over the first quarter last year," said David Eisenhaure, president and chief executive officer of SatCon. "In the Electronics Products segment, revenue growth was primarily driven by sales in the RF (radio frequency) product lines, including satellite uplink (1) Transmitting from an earth station to a satellite. Contrast with downlink. (2) A port on a network device that is used to connect to another network device rather than a client or server. See MDI port. amplifiers, communications uplinks and power resistors for cellular telephones, all of which serve markets that continue to appear healthy. In our Motion Control Products segment, increased sales at both MagMotor and Ling Electronics contributed to record-level revenue growth. At MagMotor, results were driven by sales of our MagLev(TM) systems to Applied Materials Applied Materials, Inc. NASDAQ: AMAT (HKSE: 4336 ) is the global leader in nanomanufacturing technology solutions with a broad portfolio of innovative equipment, service and software products for the fabrication of semiconductor chips, flat panel solar displays, solar and by increased sales of our industrial automation motors. Because of the demand for our technology and products, we are planning to lease a new 60,000 square foot facility in Worcester, Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. to replace our current 17,000 square foot facility."Eisenhaure continued, "Revenue growth at the Technology Center reflects our continuing work on the Department of Energy's AIPM AIPM Australian Institute of Project Management AIPM American Institute for Preventive Medicine AIPM Appalachian Integrated Pest. Management AIPM Association of International Pharmaceuticals Manufacturers AIPM Analytic Independent-Particle Model AIPM Advanced Internet Protocol Module (Automotive Integrated Power Module) program to develop low cost power conversion modules for electric and hybrid-electric automobiles; a contract from General Dynamics General Dynamics Corporation (NYSE: GD) is a defense conglomerate formed by mergers and divestitures, and as of 2006 it is the sixth largest defense contractor in the world[1]. The company has changed markedly in the post-Cold War era of defense consolidation. Land Systems to build a high-power density power conversion module for a military vehicle; and a contract to develop components for the new Navy Electro-Magnetic Aircraft Launch System. In the first quarter, SatCon was awarded several new contracts, including one to develop the use of silicon carbide silicon carbide, chemical compound, SiC, that forms extremely hard, dark, iridescent crystals that are insoluble in water and other common solvents. Widely used as an abrasive, it is marketed under such familiar trade names as Carborundum and Crystolon. based power semiconductors, which will further advance the technology of high-power electronics such as those used in SatCon's PowerGate(TM) power conversion systems, and two contracts worth $2.9 million to develop power conversion modules and electronics for the next generation "all-electric" ship for the U.S. Navy. "In the first quarter, we focused our resources on a marketing program to support the launch of our new 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. , or UPS, product line that we introduced at the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Power Association Winter Conference on January 31, 2001," Eisenhaure said. "Designed to provide up to 2.0 megawatts of power during power outages This is a list of famous wide-scale power outages. 1965
Eisenhaure said the UPS product line enhances SatCon's product offerings for the alternative power and energy management sector that now includes its PowerGate(TM) power conversion systems and the GridLink(TM) utility interface for distributed power generation that work with fuel cells, microturbines, wind turbines and solar arrays, motors, controllers and drivetrains for alternative fuel vehicles Alternative fuel vehicle Conventional fuels such as gasoline and diesel are gradually being replaced by alternative fuels such as gaseous fuels (natural gas and propane), alcohol (methanol and ethanol), and hydrogen. and, through SatCon's affiliate, 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 Corporation, flywheel energy storage Flywheel Energy Storage (FES) works by accelerating a rotor (flywheel) to a very high speed and maintaining the energy in the system as rotational energy. The energy is converted back by slowing down the flywheel. devices. The StarSine MegaPower(TM) UPS family, based on Ling Electronics' StarSine line of high-quality power output electronics, is modular, allowing for a number of UPS power levels that can accommodate a variety of businesses from hotels and hospitals to offices and manufacturing facilities. The UPS products will be manufactured at Ling Electronics and sold, distributed and serviced by Ling Electronics' worldwide sales and service network. Also during the quarter, Beacon Power (Nasdaq:BCON BCON Broadcast Cross Connect (AT&T) ) completed its initial public offering, raising an aggregate of approximately $51,300,000. As of December 31, 2000 we increased the carrying value of our investment in Beacon Power by $10.2 million. This reflects the increase in our beneficial share of Beacon Power's book equity after the completion of Beacon public offering, reduced by the $5.8 million of previously recorded losses of Beacon Power and the $549,000 equity loss recorded in the quarter. We currently own approximately 9,705,000 shares or 22.7% of Beacon Power's outstanding common stock. Beacon Power recently announced that it has installed two model 20C1000 flywheel energy storage systems to provide standby power Standby power, also called Vampire power, refers to the electric power consumed by electronic appliances in a standby mode. A very common "electricity vampire" is a power adaptor built on a plug with no power switch. for one of San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. Gas and Electric's (SDG&E) telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. customers, Cox Communications Cox Communications is a privately owned subsidiary of Cox Enterprises providing digital cable television and telecommunications services in the United States. It is the third-largest[2] cable television provider in the United States, serving more than 6. . SatCon's Fuel Cell Power Products Division also received an order for an additional 65 UPS power electronics systems from Beacon Power. These new systems are being designed to be field serviceable ser·vice·a·ble adj. 1. Ready for service; usable: serviceable equipment. 2. Able to give long service; durable: a heavy, serviceable fabric. , to meet UL certification, and reflect reduced size and cost. About SatCon Technology Corporation SatCon Technology Corporation manufactures and sells power and energy management products for distributed power generation, telecommunications, silicon wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. manufacturing, factory automation, aircraft, satellites and automotive applications. SatCon has three operating segments that contain six divisions. Under the Electronics Products segment, Advanced Fuel Cell Power Products manufactures and sells power conversion products for fuel cell and other power generation systems and Film Microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. , Inc. designs and manufactures standard and custom microelectronic The miniaturization of electronic circuits. See chip. circuits and interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. products. Under the Motion Control Products segment, MagMotor manufactures standard and custom high-performance motors and magnetic suspension systems Noun 1. suspension system - a mechanical system of springs or shock absorbers connecting the wheels and axles to the chassis of a wheeled vehicle suspension and Ling Electronics manufactures 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. vibration test equipment, power converters, amplifiers and controllers. Under the Funded Research and Development segment, SatCon Electronic Power Products performs contract product development for power electronics including hybrid and electric drivetrains, and the Technology Center is responsible for new technology and product development. Our affiliate, Beacon Power Corporation, is developing flywheel energy storage systems for uninterruptible power and power quality management. For further information, please visit the SatCon website at http://www.satcon.com. 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 failure of government agencies to fully fund any of the awards discussed, the inability to successfully introduce the StarSine MegaPower(TM) UPS, developments in SatCon'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 SatCon's filings, including but not limited to the 10-K and 10-Q. Copies of those filings are available from SatCon and the SEC.
SatCon Technology Corporation
Consolidated Statements of Operations
($ in thousands, except per share data)
(Unaudited)
Three months ended December 31,
2000 1999
Product revenue $ 7,423 $ 3,161
Funded research and development
revenue 2,071 1,395
Total revenue 9,494 4,556
Operating expenses:
Cost of product revenue 6,098 3,001
Research and development expenses:
Funded research and development
expenses 1,440 1,094
Unfunded research and development
expenses 1,239 629
Total research and development
expenses 2,679 1,723
Selling, general and administrative
expenses 2,744 2,032
Amortization of intangibles 323 243
Total operating expenses 11,844 7,000
Operating loss (2,350) (2,443)
Unrealized loss on MTI warrants (1,831) --
Interest income/(expense), net 113 30
Net loss before loss fron Beacon
Power and cumulative effect of
accounting change (4,068) (2,413)
Loss from Beacon Power (549) (563)
Net loss before cumulative effect
of accounting change ($ 4,617) ($ 2,976)
Cumulative effect of unrealized loss
on MTI warrants (1,022) --
Net loss ($ 5,639) ($ 2,976)
Accretion of redeemable convertible
preferred stock discount -- (156)
Net loss attributable to common
stockholders ($ 5,639) ($ 3,132)
Earnings per share, basic and
diluted:
Net loss before cumulative effect of
accounting change ($ 0.33) ($ 0.28)
Cumulative effect of accounting
change ($ 0.07) $ 0.00
Net loss attributable to common
stockholders ($ 0.41) ($ 0.29)
Shares used for computing basic and
diluted EPS 13,828 10,793
SatCon Technology Corporation
($ in thousands)
December 31, September 30,
Consolidated Balance
Sheets as of: 2000 2000
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 8,847 $ 8,814
Accounts receivable, net 6,739 7,496
Unbilled contract costs, net 616 825
Inventory 8,609 8,002
Prepaid expenses and other current
assets 526 615
Total current assets 25,337 25,752
Property and equipment 10,535 9,861
Accumulated depreciation (3,832) (3,604)
Property and equipment, net 6,703 6,257
Intangibles 11,162 11,142
Accumulated amortization (2,388) (2,062)
Intangibles, net 8,774 9,080
Investment in Beacon Power 10,268 --
Warrant to purchase MTI common stock 643 2,474
Other long-term assets 1,198 925
Total assets $ 52,923 $ 44,488
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 3,443 $ 3,076
Accrued expenses 2,388 2,744
Deferred revenue 2,000 1,525
Current portion of long-term debt 468 17
Total current liabilities 8,299 7,362
Long-term liabilities, net of
current portion 1,125 214
Contingent obligation to Class D
shareholders of Beacon Power -- 5,794
Contingent obligation to warrant
holders 2,287 --
Stockholders' equity:
Common stock; $.01 par
value,25,000,000 shares
authorized; 13,892,185 and
13,841,185 shares issued in 2001
and 2000 139 138
Additional paid-in capital 87,206 72,499
Accumulated deficit (45,883) (41,269)
Treasury stock, at cost; 44,500
shares (250) (250)
Total stockholders' equity 41,212 31,118
Total liabilities and
stockholders' equity $ 52,923 $ 44,488
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