Spire Corporation Reports Results for Second-Quarter 2013

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Spire Corporation Reports Results for Second-Quarter 2013

BEDFORD, Mass.--(BUSINESS WIRE)-- Spire Corporation ("Spire") (OTCQB: SPIR), a global solar company providing capital equipment and turn-key manufacturing lines to produce photovoltaic ("PV") modules and providing engineering, procurement and construction integration services for solar systems and biomedical processing services, today reported revenues from continuing operations for the second-quarter ended June 30, 2013 of $3.6 million, a 46% decrease from $6.6 million for the same quarter of 2012. This decline is primarily due to a decrease of $2.8 million in individual module equipment units delivered during the second-quarter of fiscal year 2013 as overcapacity in the global market continues to adversely affect the entire PV industry.

Net loss for the second-quarter of 2013 was $1.8 million, or $0.19 per diluted share, compared with a net loss of $1.8 million, or $0.21 per diluted share, for the second-quarter of 2012. Loss from continuing operations was $1.8 million for the three months ended June 30, 2013, as compared to net loss from continuing operations of $1.8 million for the same period in 2012.


Gross margin for the second-quarter of 2013 was $0.5 million, or 14% of revenue, compared to $1.2 million, or 18% of revenue, for the same period in 2012, representing a reduction in gross margin percentage of 22% for the three months ended June 30, 2013, primarily due to the decline in sales, lower indirect costs offset by the amount of overhead absorbed due to the reduction in sales volume.

Net cash used in operating activities was $1.9 million for the six months ended June 30, 2013, which includes $0.2 million of cash used in operating activities of discontinued operations, as compared to net cash used in operating activities of $4.3 million for the six months ended June 30, 2012 which includes $1.7 million of cash used in operating activities of discontinued operations. As of June 30, 2013, Spire had $1.7 million of unrestricted cash and cash equivalents.

Roger G. Little, Chairman and CEO, says, "The global market for PV systems continues to expand driven in part by low cost modules that have resulted from overcapacity in the industry. With the demise of many manufacturers and the growth of the market, we expect this overcapacity of module manufacturing to be absorbed by mid-2014. Once absorbed, we expect module prices to rise. Higher prices will improve the financial performance of the surviving manufacturers, as well as the rest of the value chain, and stimulate capacity expansion likely in late 2014. We have made substantial cost reductions and have put effort into our EPC business to sustain our solar equipment operations until module manufacturing expansion recovers. We recently completed the installation of 228 kilowatts of systems, for example. From late 2014 on, we expect the growth of the industry to continue but on a much healthier financial footing."

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 June 30,  Six Months Ended June 30,
2013 20122013 2012

Net sales and revenues

$

3,574

 

$

6,620

 

$

6,812

 

$

14,095

 

Operating loss from continuing operations

(1,768)(1,787)(4,370)(3,396)

Total other expense, net

 (14) (35) (38) (64)

Loss from continuing operations before income tax benefit (provision)

(1,782)(1,822)(4,408)(3,460)

Income tax benefit (provision) - continuing operations

 --  --  (2) 1,992 

Loss from continuing operations

(1,782)(1,822)(4,410)(1,468)

Income from discontinued operations, net of tax

 --  --  --  3,011 

Net income (loss)

$

(1,782

)

$

(1,822

)

$

(4,410

)

$

1,543

 

Basic and diluted income (loss) per share:

 

 

From continuing operations, net of tax$(0.19)$(0.21)$(0.48)$(0.17)
From discontinued operations, net of tax --  --  --  0.35 
Basic and diluted income (loss) per share$(0.19)$(0.21)$(0.48)$0.18 

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

 9,207,874  8,562,633  9,144,482  8,562,633 
 
 

Summary of Unaudited Condensed Consolidated Balance Sheet

(in thousands)

   

June 30, 2013

  December 31, 2012

Assets

Current assets$8,811$12,072
Property and equipment - net1,0391,197
Other assets 3,612 3,356

Total assets

$13,462$16,625

Liabilities and stockholders' equity

Current liabilities$6,204$5,456
Total long-term liabilities3,9483,717
Stockholders' equity 3,310 7,452
Total liabilities and stockholders' equity$13,462$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.

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

KEYWORDS:   United States  North America  Massachusetts

INDUSTRY KEYWORDS:

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