Spire Corporation Reports Results For First-Quarter 2011

Spire Corporation (Nasdaq: SPIR), a global solar company providing capital equipment and turn-key manufacturing lines to produce photovoltaic (PV) modules and Engineering, Procurement and Construction (EPC) integration services for solar systems, today reported revenues from continuing operations for the first-quarter ended March 31, 2011 of $18.4 million, a 2% decrease from $18.9 million for the same quarter of 2010.

Net loss for the first-quarter of 2011 was $2.0 million, or $0.24 per share compared with a net loss of $0.7 million or $0.08 per share for the first-quarter of 2010. Loss from continuing operations was $2.0 million for the three months ended March 31, 2011 as compared to $1.3 million before a gain on termination of contracts for the first-quarter of 2010, or an increase in operating loss of $0.7 million year-over-year. The net loss for the first-quarter of 2010 includes a net loss of $87 thousand or $0.01 per share from the Company’s Medical Products business unit, which was sold in December 2009 and was classified as discontinued operations.

Net cash used in continuing operations was $0.5 million for the three months ended March 31, 2011, as compared to net cash used in continuing operations of $5.1 million for the three months ended March 31, 2010. As of March 31, 2011, Spire had $5.7 million in cash and cash equivalents.

Roger G. Little, Chairman and CEO, said “Revenues in the first-quarter of fiscal 2011 were about the same as last year, although we were less profitable due to product mix. In particular, we had an increase of 43% in solar cell sales, on a year-over-year basis, to $7.1 million at lower profit margin than from sales of solar equipment and turn-key lines.”

“During the quarter, we shipped a record number of Spi-Sun Simulators™, which are now used in over 30 PV module test laboratories and hundreds of manufacturing facilities worldwide.”

“Although turn-key line sales were down during the quarter, we are in the process of installing lines for a number of customers. These include MAGE SOLAR, where we are providing a line in the U.S. to assemble laminates into completed modules at the rate of 50 megawatts (MW) per year. Also, Rahimafrooz Renewable Energy, Ltd. of Bangladesh is installing one of our 20MW per year advanced manufacturing lines, and Tecnometal Equipamentos LTDA, a Brazilian company, is setting up another Spire 20MW semi-automated module manufacturing line.”

Mr. Little continued, “Our PV systems group that supplies EPC integration services began the construction of a 2MW, eight-acre solar PV system at Berkshire School in Sheffield, Massachusetts. This group is also providing Rahimafrooz with PV systems technology to help them expedite the sale of their modules in Bangladesh.”

Conference Call Information

Spire Corporation will host a conference call on Wednesday, May 11, 2011 at 4:30 p.m. (EDT). On the call, Chairman and CEO, Roger G. Little and Chief Financial Officer and Treasurer, Robert S. Lieberman, will discuss Spire’s first-quarter 2011 financial results, as well as the Company’s business outlook and growth strategy. During the conference call, the Company may answer questions concerning business and financial developments, trends, and other business and financial matters. The Company’s responses to these questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.

Those who wish to listen to the conference call should visit the Investors section of the Company’s website, www.SpireCorp.com. The live call can also be accessed by dialing 866.804.6925; international callers should dial +1 857.350.1671. The passcode for all participants is 85 38 57 43. If you are unable to listen live, the call will be archived on the Company’s website.

About Spire Corporation

Spire Corporation is a global solar company providing advanced technology, capital equipment and turn-key production lines to manufacture PV modules. To learn more about Spire Corporation, visit www.SpireCorp.com or email PR@SpireCorp.com.

Spire Corporation and Subsidiaries

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts)
Three Months Ended March 31,
  2011     2010  

Net sales and revenues
$ 18,441   $ 18,865  

Gain on termination of contracts

Loss from continuing operations
(1,983 ) (448 )

Total other expense, net
  (28 )   (127 )

Net loss from continuing operations
(2,011 ) (575 )
Net loss from discontinued operations – net of tax       (87 )

Net loss
$ (2,011 ) $ (662 )

Basic and diluted loss per share:

From continuing operations, net of tax






From discontinued operations, net of tax       (0.01 )
Basic and diluted loss per share $ (0.24 ) $ (0.08 )

Weighted average number of common and common

equivalent shares outstanding – basic and diluted
  8,360,383     8,334,688  

Summary of Unaudited Condensed Consolidated Balance Sheets

(in thousands)

March 31,2011

December 31,2010


Current assets
$ 25,857 $ 26,451
Property and equipment, net 4,280 4,588
Other assets   3,625   3,546
Total assets $ 33,762 $ 34,585

Liabilities and Stockholders' Equity
Current liabilities $ 22,150 $ 21,285
Total long-term liabilities 3,522 3,395
Stockholders’ equity   8,090   9,905
Total liabilities and stockholders’ equity $ 33,762 $ 34,585

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.

Copyright Business Wire 2010

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