Spire Corporation Reports Results For First-Quarter 2012

Spire Corporation ("Spire") (Nasdaq: SPIR), a global solar company providing capital equipment and turn-key manufacturing lines to produce photovoltaic ("PV") modules and providing engineering, procurement and construction ("EPC") integration services for solar systems today reported revenues from continuing operations for the first-quarter ended March 31, 2012 of $7.5 million, a 58% decrease from $17.7 million for the same quarter of 2011 primarily due to a decrease of $7.2 million in non-recurring solar cell materials revenue.

Net income for the first-quarter of 2012 was $3.4 million, or $0.39 per share compared with a net loss of $2.0 million or $(0.24) per share for the first-quarter of 2011. Income from continuing operations was $0.4 million for the three months ended March 31, 2012, as compared to a loss of $1.3 million, or an improvement in operating income of $1.7 million as compared to the three months ended March 31, 2011. Net income for the first-quarter of 2012 includes net income from discontinued operations, net of taxes of $3.0 million or $0.35 per 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 first quarter of 2012 was $2.0 million, or 26.1% of revenue, compared to $3.1 million, or 17.6% of revenue for the same period in 2011, representing an improvement in gross margin percentage of 8.5% as compared to the three months ended March 31, 2011, primarily due to lower margins realized on solar cell materials in the prior year.

Net cash provided by operating activities was $1.5 million for the three months ended March 31, 2012, which includes $3.9 million of cash provided by operating activities of discontinued operations, as compared to net cash used in continuing operations of $0.5 million for the three months ended March 31, 2011. As of March 31, 2012, Spire had $8.4 million in cash and cash equivalents.

Roger G. Little, Chairman and CEO, stated, “With the divestiture of the Semiconductor business unit, the Company can now concentrate resources on capital equipment and systems for the photovoltaic solar industry.”

Mr. Little concluded, “We anticipate the softness in the solar industry to continue for a while longer. However, the bottom in equipment spending is expected to occur sometime toward the end of 2012, as manufacturers begin capital improvement programs including equipment updates and expansion. Market researchers predict a return to double digit growth sometime in 2013 that would extend for at least the next several fiscal years. We are positioned to capitalize on this projected growth with the recent introduction of our newest simulator, the Spi-Sun Simulator TM 5600SLP and new Spi-Assembler TM 8000. We are also combining our solar product lines by offering systems capabilities to our manufacturing line customers.”

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 March 31,
2012   2011

Net sales and revenues
$ 7,475   $ 17,728  

Operating loss from continuing operations
(1,609 ) (1,280 )

Total other expense, net

(29
) (28 )

Income tax benefit – continuing operations
  1,992      

Income (loss) from continuing operations
354 (1,308 )

Income (loss) from discontinued operations – net of tax
  3,011     (703 )

Net income (loss)
$ 3,365   $ (2,011 )

Basic and diluted income (loss) per share:
From continuing operations, net of tax $ 0.04 $ (0.16 )
From discontinued operations, net of tax   0.35     (0.08 )

Basic and diluted income (loss) per share
$ 0.39   $ (0.24 )

Weighted average number of common and common

equivalent shares outstanding – basic
  8,562,633     8,360,383  

Weighted average number of common and common

equivalent shares outstanding – diluted
  8,565,487     8,360,383  
 

Summary of Unaudited Condensed Consolidated Balance Sheet

(in thousands)
   

March 31,2012

December 31,2011

Assets
Current assets $ 19,181 $ 17,636
Property and equipment - net 1,216 1,354
Other assets   3,967   5,188
Total assets $ 24,364 $ 24,178

Liabilities and stockholders' equity
Current liabilities $ 8,412 $ 11,936
Total long-term liabilities 3,497 3,532
Stockholders’ equity   12,455   8,710
Total liabilities and stockholders’ equity $ 24,364 $ 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.

Copyright Business Wire 2010

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