Spire Corporation (“Spire”) (Nasdaq: SPIR), a global solar company providing capital equipment and turn-key manufacturing lines to produce photovoltaic (“PV”) modules, engineering, procurement and construction (“EPC”) integration services for solar systems and biomedical processing services today reported revenues from continuing operations for the second-quarter ended June 30, 2012 of $6.6 million, a 52% decrease from $13.9 million for the same quarter of 2011. This decline is primarily due to a decrease of $7.3 million in individual module equipment units delivered during the second-quarter of fiscal year 2012 as overcapacity in the global market continues to adversely affect the entire PV industry.
“The quarterly revenue and operating loss is in line with our expectations as a result of the collapse of the PV equipment market driven by worldwide overcapacity of module manufacturing. We anticipated the market collapse and have taken significant cost reduction measures.”
Net loss for the second-quarter of 2012 was $1.8 million, or $0.21 per diluted share, compared with a net income of $0.7 million or $0.08 per diluted share for the second-quarter of 2011. Loss from continuing operations was $1.8 million for the three months ended June 30, 2012, as compared to net income of $1.2 million for the same period in 2011, or a reduction in operating income of $3.0 million for the three months ended June 30, 2012. Net income for the second-quarter of 2011 includes a net loss from discontinued operations, net of taxes of $0.5 million or $0.06 per diluted share from the Company’s Semiconductor business unit, which was sold in March 2012 and accordingly was classified as discontinued operations.
Gross margin for the second-quarter of 2012 was $1.2 million, or 19% of revenue, compared to $5.3 million, or 38% of revenue for the same period in 2011, representing a reduction in gross margin percentage of 19% for the three months ended June 30, 2012, primarily due to the reduced volume and resulting unabsorbed fixed overhead cost.
Net cash provided by operating activities was $0.4 million for the six months ended June 30, 2012, which includes $3.7 million of cash provided by operating activities of discontinued operations, as compared to net cash used in operating activities of $0.7 million for the six months ended June 30, 2011 which includes $0.8 million of cash used in operating activities of discontinued operations. As of June 30, 2012, Spire had $7.2 million of unrestricted cash and cash equivalents.
Roger G. Little, Chairman and CEO, stated, “The quarterly revenue and operating loss is in line with our expectations as a result of the collapse of the PV equipment market driven by worldwide overcapacity of module manufacturing. We anticipated the market collapse and have taken significant cost reduction measures.”
Mr. Little concluded, “Based on recent industry marketing forecasts, we expect the PV equipment market to begin to recover in late 2013 then potentially increasing in global demand extending through at least 2016. As this happens, we believe that we are positioned to capitalize on equipment re-tooling, the growth of regional PV module manufacturing and PV module supply chain transactions. During this quarter, we successfully introduced and delivered our first Spi-Sun SimulatorTM 5600SLP and anticipate sales of this new system to increase as module manufacturers replace older equipment, address measurement needs of high efficiency module technology and expand production.”
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, | |||||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
| Net sales and revenues | $ | 6,620 | $ | 13,871 | $ | 14,095 | $ | 31,599 | ||||||||||||||||
| Operating income (loss) from continuing operations | (1,787 | ) | 1,243 | (3,396 | ) | (37 | ) | |||||||||||||||||
| Total other expense, net | (35 | ) | (39 | ) | (64 | ) | (67 | ) | ||||||||||||||||
| Income (loss) from continuing operations before | ||||||||||||||||||||||||
| income tax benefit (provision) | (1,822 | ) | 1,204 | (3,460 | ) | (104 | ) | |||||||||||||||||
| Income tax benefit (provision) – continuing | ||||||||||||||||||||||||
| operations | — | (15 | ) | 1,992 | (15 | ) | ||||||||||||||||||
| Income (loss) from continuing operations | (1,822 | ) | 1,189 | (1,468 | ) | (119 | ) | |||||||||||||||||
| Income (loss) from discontinued operations, | ||||||||||||||||||||||||
| net of tax | — | (495 | ) | 3,011 | (1,198 | ) | ||||||||||||||||||
| Net income (loss) | $ | (1,822 | ) | $ | 694 | $ | 1,543 | $ | (1,317 | ) | ||||||||||||||
| Basic income (loss) per share: | ||||||||||||||||||||||||
| From continuing operations, net of tax | $ | (0.21 | ) | $ | 0.14 | $ | (0.17 | ) | $ | (0.02 | ) | |||||||||||||
| From discontinued operations, net of tax | — | (0.06 | ) | 0.35 | (0.14 | ) | ||||||||||||||||||
| Basic income (loss) per share | $ | (0.21 | ) | $ | 0.08 | $ | 0.18 | $ | (0.16 | ) | ||||||||||||||
| Diluted income (loss) per share: | ||||||||||||||||||||||||
| From continuing operations, net of tax | $ | (0.21 | ) | $ | 0.14 | $ | (0.17 | ) | $ | (0.02 | ) | |||||||||||||
| From discontinued operations, net of tax | — | (0.06 | ) | 0.35 | (0.14 | ) | ||||||||||||||||||
| Diluted income (loss) per share | $ | (0.21 | ) | $ | 0.08 | $ | 0.18 | $ | (0.16 | ) | ||||||||||||||
| Weighted average number of common and | ||||||||||||||||||||||||
| common equivalent shares outstanding – basic | 8,562,633 | 8,362,633 | 8,562,633 | 8,361,514 | ||||||||||||||||||||
| Weighted average number of common and | ||||||||||||||||||||||||
| common equivalent shares outstanding – diluted | 8,562,633 | 8,362,937 | 8,562,633 | 8,361,514 | ||||||||||||||||||||
| Summary of Unaudited Condensed Consolidated Balance Sheets | ||||||||||
| (in thousands) | ||||||||||
| June 30, 2012 |
December 31, 2011 |
|||||||||
| Assets | ||||||||||
| Current assets | $ | 17,044 | $ | 17,636 | ||||||
| Property and equipment, net | 1,084 | 1,354 | ||||||||
| Other assets | 3,021 | 5,188 | ||||||||
| Total assets | $ | 21,149 | $ | 24,178 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||||
| Current liabilities | $ | 7,371 | $ | 11,936 | ||||||
| Long-term liabilities | 3,302 | 3,532 | ||||||||
| Stockholders’ equity | 10,476 | 8,710 | ||||||||
| Total liabilities and stockholders’ equity | $ | 21,149 | $ | 24,178 | ||||||
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.
 (Nasdaq: SPIR), a global solar company providing capital equipment and turn-key manufacturing lines to produce photovoltaic (“PV”) modules, engineering, procurement and construction (“EPC”) integration services for solar…){kind=link}