Satcon Technology Corp. (
Q3 2010 Earnings Call
October 28, 2010; 08:30 am ET
Steve Rhoades - President & Chief Executive Officer
Don Peck - Chief Financial Officer
Leah Gibson - Investor Relations Manager
Adam Krop – Adour Capital Investment
Dale Pfue – Cantor Fitzgerald
Joseph Maxa – Dougherty & Company
Sean Wieland – Piper Jaffray
Pavel Molchanov – Raymond James
Colin Rush – ThinkEquity Partners
Jesse Pichel - Jefferies & Company
Scott Reynolds – Stifel Nicolaus
Edwin Mok – Needham & Company
Carter Driscoll – Capstone Investments
Aaron Martin – AIGH Investment Partners
Robert Littlehale - JPMorgan
Previous Statements by SATC
» Satcon Technology Corporation Q2 2010 Earnings Call Transcript
» SatCon Technologies Corp. Q1 2010 Earnings Call Transcript
» SatCon Technology Corporation Q4 2009 Earnings Call Transcript
» SatCon Technology Corporation Q3 2009 Earnings Call Transcript
Good day and welcome everyone to SatCon’s third quarter 2010 conference call. Today’s call is being recorded. You may listen to the webcast on SatCon’s website located at
In addition, today’s news release is posted on the site for those of you who did not receive it by email. With us today, are SatCon’s President and Chief Executive Officer, Steve Rhoades, Chief Financial Officer, Don Peck, and Investor Relations Manager, Leah Gibson.
At this time for opening remarks, I’d like to turn the call over to Ms. Gibson. Please go ahead.
Thank you, Claudia and welcome to the call everyone. Before we begin, please note that the comments made on this conference call today may include forward-looking statements that involve a number of risks and uncertainties. For this purpose, any statements contained herein, that are not statements of historical facts, may be deemed to be forward-looking statements and may include the words, believe, anticipate, plans, expects, intend and similar expressions, which are intended to identify forward-looking statements.
Important factors that could cause actual results to differ materially from those inferred by such forward-looking statements are set forth under the caption Risk Factors in SatCon’s Annual Report on Form 10-K for the year ended December 31st, 2009, and the company’s quarterly report on Form 10-Q ended September 30th, 2010. These factors are included there for reference. Once filed with the SEC, copies of the 10-Q will be available from SatCon upon request and will be posted to the company’s Investor Relations website at stacon.com.
In addition, today’s call is being recorded and a webcast replay will be available on the Investor Relations website. This conference call and associated recordings belong to SatCon and are prepared for the benefit of our investors.
I will now turn the call over to our President and Chief Executive Officer, Steve Rhoades. Steve?
Thanks Leah and good morning everyone. I’m extremely pleased to report to you on yet another record revenue quarter for SatCon, inline with our preliminary results reported last week. We’re very pleased to have posted revenues ahead of our project of $56 to $58 million with Q3 2010 ending at $58.4 million.
This represents an increase of more than 480% over our reported renewable energy solution revenues for the same quarter a year ago. Gross margins came in within our goal at 27% and we expect this upward trend in gross margin to continue in the fourth quarter and into 2011.
As we introduced last week, we expect revenues for the fourth quarter of 2010 to be between $70 and $75 million and expect to achieve a gross margin percentage for the fourth quarter of between 28% and 32%.
During the quarter, we shipped 220 megawatts to SatCon industry leading solutions. SatCon’s 500 kilowatt PowerGate Plus solution, continue to be our strongest performing product, shipping 147 megawatts representing over 1100% growth over the number of 500 kilowatt units shipped in the third quarter of 2009.
Our 500 kilowatt PowerGate Plus continues to be the most widely deployed utility ready solar PV inverter in the large scale inverter category with over 800 megawatt sold worldwide since its introduction in 2005.
In addition to the continued success of our PowerGate Plus solutions, we have significant demand for our old Solstice 100 kilowatt and 500 kilowatt solutions, which have already generated significant sales since their introduction this year.
As of October 27th, 2010 the company’s backlog, which consists of purchase orders of customers was $132.6 million with total revenue year-to-date surpassing $100 million. Backlog from North America represented approximately 62% of the total while Asia contributed 23% and Europe contributed approximately 15%.
We have sold over 1300 units of our commercial and utility scale inverter solutions year-to-date and our current backlog consists of 560 megawatts of our large scale inverter solutions. This surge in sales has out paid for PV industry and clearly reflects the growth of the large commercial and utility scale PV market, which in 2011 is expected to grow five times faster than the rest of the industry according to recent analysis from IMS Research.
Given the continued strength of the utility scale market coupled with our robust revenue growth current backlog and pipeline we believe that we will acquire well over 20% of the global market for PV inverters at 250 kilowatt and above for 2010. Focusing for a moment on our strong sales performance, we continued to see significant contributions from each of our core growth markets in North America, Europe and Asia-Pacific.
In North America, sales represented 53% of the total revenue for the quarter and bookings reached over 194 megawatts. One of the driving forces behind this is the considerable growth in the utility scale solar market worldwide where SatCon has established itself as the most innovated solution provider and brand.
We have seen significant increased demand in each of our three core markets as demonstrated by the volume of our 500 kilowatt PowerGate Plus and 500 kilowatt Solstice solutions that have been selected for numerous multi megawatt solar power plants worldwide.