Revenues Increase 70 Percent on Turnkey Solar Factory Demand
Spire Corporation Reports Record Third Quarter 2007 Results
Sales of Turnkey Solar Factories and Capital Equipment Increase by 268 Percent
Spire Corporation, (Nasdaq: SPIR), a global solar company providing turnkey solar factories and capital equipment to manufacture photovoltaic modules worldwide, today announced that revenues increased 70 percent in the third quarter of 2007 on strong sales of solar photovoltaic production equipment.
The Company reported revenues of $9,845,000 for the three months ended September 30, 2007, compared to $5,794,000 for the same period in 2006. In addition, the Company recorded a gain of $2,707,000 from the sale of rights to utilize its trademark, income tax benefit of $884,000 and an extraordinary gain of $1,311,000, net of tax, on its equity investment in its joint venture, Gloria Spire Solar.
Net income after extraordinary gain was $2,755,000, or $0.33 per basic share for the three months ended September 30, 2007, compared with a net loss of $1,941,000, or $0.24 per basic share, for the same period in 2006.
Revenues for the nine months ended September 30, 2007 were $25,421,000, compared to $15,062,000 for the nine month period in 2006.
In addition, the Company recorded a gain of $2,707,000 from the sale of rights to utilize its trademark, income tax benefit of $884,000 and an extraordinary gain of $1,311,000 net of tax on its equity investment in the joint venture.
Net loss after extraordinary gain was $856,000, or $0.10 per basic share, for the nine months ended September 30, 2007, compared with a net loss of $6,026,000, or $0.77 per basic share, for the same period in 2006.
Roger G. Little, Chairman and CEO of Spire, said, “We have now achieved three consecutive quarters of record revenues. During the third quarter, we have solidified our position as the worldwide leader in developing and providing turnkey factories for solar energy manufacturing and we continue to see strong growth in solar capital equipment sales going forward.
Sales of our turnkey factories and manufacturing equipment increased by 268 percent over the comparable quarter last year. In addition to the strong current sales levels, we are also encouraged by the continued level of sales backlog in the pipeline.
Margins increased compared to last year, and we expect to see continued improvement as we complete our extensive manufacturing expansion, become more efficient and integrate our growing workforce.
Part of the gain from the improved margins was offset by higher selling expenses as a result of increased sales and marketing activity.
“During the quarter, we closed several major sales, including our first fully automated turnkey 50-megawatt (MW) module production line for Martifer Solar S.A., a division of Martifer Group, located in Oliverira de Frades, Portugal. And shortly after the close of the quarter, we provided a turnkey, 12-MW module manufacturing line to a customer in Russia, making them the largest module manufacturer in that country.
These sales are a testament to the strength of Spire as a global equipment supplier and our dominance as the recognized leader for turnkey solar factory solutions.”
“We also successfully restructured our solar systems operation with the formation of a joint venture with Gloria Solar, a leading manufacturer in Taiwan.
We exchanged our existing building integrated Photovoltaics (PV) systems business for a 45 percent interest in the new venture, Gloria Spire Solar, LLC, which was capitalized by Gloria.
In addition, we sold a 50-MW module production line to Gloria’s existing operations in China, along with the right to mark their PV modules with the Spire trademark.
This will enable Spire’s management to better concentrate on our equipment business while continuing to extend the Spire brand in the marketplace.
The joint venture is focused on the high-growth domestic systems market and we believe this new structure will allow Gloria Spire Solar to become a major player.”
Mr. Little, concluded, “Our Bandwidth Semiconductor and Spire Biomedical operations continued to make progress towards profitability.
Bandwidth Semiconductor increased its revenues while qualifying its two new commercial reactors with a key customer. We also are starting a new program to develop high-efficiency gallium arsenide solar concentrator cells and we are seeing strong customer interest in partnering with Bandwidth in this exciting new market. And our Biomedical operation reported revenue growth in both services and products.”
Conference Call Information
Spire Corporation will conduct a conference call for investors to discuss the information contained in this news release today at 5:00 p.m. (ET). On the call, Chairman, CEO and President Roger G. Little and Chief Financial Officer Christian Dufresne will discuss Spire’s third-quarter financial results, as well as the Company’s business outlook and growth strategy.
Investors who wish to listen to the conference call webcast should visit the “Investors” section of the company’s website at www.spirecorp.com. The live call also can be accessed by dialing 800-431-4190 or 913-905-1087. If you are unable to listen to the live call, the webcast will be archived on the company’s website.
About Spire Corporation
Spire Corporation is a global solar company providing turnkey solar factories and capital equipment to manufacture photovoltaic modules worldwide. Spire’s wholly owned LLC, Bandwidth Semiconductor provides high efficiency gallium arsenide (GaAs) solar concentrator cells to systems manufacturers as well as specialized optoelectronics components for biomedical, telecommunications and consumer products markets. The company’s Spire Biomedical subsidiary is a leader in hemodialysis catheters and implantable device processing services.
For corporate or product information, contact Spire Corporation at 781-275-6000, or visit www.spirecorp.com.
SUMMARY OF CONDENSED CONSOLIDATED BALANCE SHEET
September 30, 2007
Current assets $ 40,715,000 Net property and equipment 5,949,000 Other assets 5,321,000 Total assets $ 51,985,000 Liabilities and stockholders' equity
Current portion of capital lease obligations - related party $ 779,000 Current portion of equipment line of credit 1,167,000 Accounts payable and accrued liabilities 10,087,000 Advances on contracts in progress 22,096,000 Total current liabilities 36,706,000
Total long-term liabilities 6,031,000 Stockholders’ equity 9,248,000
Total liabilities and stockholders’ equity $ 51,985,000
Certain matters described in this news release may be forward-looking statements 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-KSB and other periodic reports filed with the Securities and Exchange Commission.
Spire Corporation Christian Dufresne, 781-275-6000 CFO & Treasurer
Source: Business Wire (November 19, 2007 - 4:52 PM EST)
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