In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our views change. Therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today.We will also be referring to non-GAAP measures on this call. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of GAAP to non-GAAP measures is available in our press release issued today, which is available on our website at www.a123systems.com. Now, let me turn the call over to Dave Vieau for his remarks. Dave Vieau Thanks, Garo and thanks for those of you joining us on our call today. On today's call, we will discuss our financial performance for the second quarter of 2012, operational stability we have achieved since our last call and new technology and customers that we expect to help drive our future growth. Before we do that, I would like to discuss an announcement we made this morning that we consider to be an important step toward removing the uncertainty regarding A123's financial situation. Last quarter, we indicated that we were actively pursuing strategic partnership options to strengthen our liquidity and stabilize our financial situation. This morning, we announced a non-binding memorandum of understanding with Wanxiang Group Corporation that establishes the framework for strategic agreement through which Wanxiang would invest up to $450 million in A123. According to the proposed terms of the strategic agreement Wanxiang would provide A123 with initial bridge financing of up to $75 million and subsequently we purchased $200 million aggregate principle amount of A123's senior secured convertible notes subject to necessary conditions and approvals.
Agreement would also include potential for Wanxiang to invest up to an additional $175 million if it exercises the warrants that would be issued in connection with the Bridge Facility and the convertible notes for cash. We believe this proposed strategic agreement would provide financial stability to A123 as we continue to grow our business and as we progress towards profitability targets, including achieving positive adjusted EBITDA on a quarterly basis during 2013.Wanxiang Group Corporation is China's largest automotive components manufacturer and one of China's largest non-government owned companies. Wanxiang has more than $13 billion in revenue and more than 45,000 employees including more than 3,000 in the U.S. Wanxiang's global businesses include equipment and automotive parts manufacturing, clean energy, financial services, natural resources and other industries. We believe the proposed agreement with Wanxiang makes financial and strategic sense for A123, and we see a number of synergies between the two companies. For example, we expect this partnership to provide A123 with even greater access to China's growing vehicle electrification and grid energy storage markets which we think would drive demand in the near-term. We believe, we could leverage Wanxiang's global supply chain and automotive manufacturing efficiencies to reduce our cost. We believe that Wanxiang's capital investment will remove the uncertainty regarding A123's financial situation and enable us to resolve our liquidity constraints that have impacted business growth. Wanxiang has stated its intention to build on the strong manufacturing and systems' engineering capabilities that A123 has established in Michigan and Massachusetts. Dave will provide you with more details on the framework of the agreement, but the bottom line is that we expect this proposed strategic agreement to provide A123 with sufficient capital to fund their operating requirements and grow our business. Now let me turn to our results for the second quarter. Revenue for the second quarter was $17 million. Not included in this total is approximately $3 million of revenue from prismatic cell shipments that was not recognized in the quarter. We anticipate that we will recognize the revenue later this year once these cells have achieved sufficient field experience. Read the rest of this transcript for free on seekingalpha.com