Spire Corporation Reports Third-Quarter 2010 Results

Revenues of $20.6 million resulting in year-to-year growth of 23.4%.

BEDFORD, Mass.--(BUSINESS WIRE)-- Spire Corporation (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 third-quarter ended September 30, 2010 of $20.6 million, a 24.6% increase from $16.6 million for the same quarter of 2009. Net loss for the third-quarter of 2010 was $915 thousand, or $(0.11) per share, compared with a net loss of $3.5 million, or $(0.42) per share for the third-quarter of 2009. Included in the operating results for the three month period ended September 30, 2009 was a loss of $1.2 million, or $(0.15) per share from the Company’s Medical Products Business unit which has been classified as a discontinued operation.

Revenues from continuing operations for the nine months ended September 30, 2010 were $61.9 million, a 23% increase from $50.1 million for the same nine month period in 2009. Net loss for the nine months ended September 30, 2010 was $208 thousand, or $(0.03) per share compared with a net loss of $9.6 million, or $(1.15) per share, for the same period in 2009. These results include a net gain of $1.5 million or $0.18 per share and a net loss of $1.6 million, or $(0.20) per share, for the nine month period ended September 30, 2010, and 2009, respectively, from the Company’s Medical Products Business unit which has been classified as a discontinued operation.

Net cash used in operating activities of continuing operations was $2.4 million for the nine months ended September 30, 2010, as compared to net cash provided by operating activities of $429 thousand for the same period in 2009. As of September 30, 2010, the Company had cash and cash equivalents of $6.6 million of which $6.4 million is unrestricted.

Roger G. Little, Chairman and CEO, said, “We are pleased that the Company continues to experience record revenues and substantial, year over year growth of 25.3% in our Solar business segment. Our Solar Business now accounts for 83.4% of total revenues for the nine months ended September 30, 2010.”

Mr. Little continued, “Gross margins increased to 18.2% for the nine months ended September 30, 2010; a year over year increase of 61% for the same nine months ended September 30, 2009. This was another solid quarter with revenue growth in the Solar business line, driven by high quality customers that have been added to our customer portfolio. The increase in business activity was due to the strong demand of solar equipment and solar systems have steadily progressed since the beginning of the fiscal year through the third quarter. The Company remains focused on margin enhancement by driving productivity and efficiency programs as we scale the business to meet continued top line growth while generating value to our shareholders.”

Conference Call Information

Spire Corporation will host its third-quarter 2010 financial results conference call on Wednesday, November 10, 2010 at 4:30 P.M. (EST). On the call, Chairman and CEO, Roger G. Little and Chief Financial Officer and Treasurer, Robert S. Lieberman will discuss Spire’s third-quarter 2010 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 webcast should visit the “Investors” section of the Company’s website at www.SpireCorp.com. The live call also can be accessed by dialing 866.203.3436 (international dial-in number: 617.213.8849) with the passcode: 10 99 00 77. 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 an American global solar company providing EPC integration services for solar systems, advanced technology, and capital equipment to manufacture PV modules. For more information, please email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Spire Corporation and Subsidiaries

Unaudited Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Net sales and revenues	$	20,645		$	16,564		$	61,855		$	50,124
Gross margin		3,850			2,541			11,270			5,683
Loss from continuing operations		(1,050	)		(1,999	)		(2,659	)		(6,633	)
Other expense, net		(32	)		(257	)		(184	)		(1,275	)
Loss from continuing operations before income tax provision		(1,082	)		(2,256	)		(2,843	)		(7,908	)
Income tax benefit (provision) – continuing operations		167			(23	)		1,146			(64	)
Net loss from continuing operations		(915	)		(2,279	)		(1,697	)		(7,972	)
Income (loss) from discontinued operations – net of taxes		—			(1,248	)		1,489			(1,639	)
Net loss	$	(915	)	$	(3,527	)	$	(208	)	$	(9,611	)
Loss per share – basic and diluted	$	(0.11	)	$	(0.42	)	$	(0.03	)	$	(1.15	)
Weighted average number of common and common equivalent shares outstanding – basic and diluted		8,338,188			8,334,688			8,336,406			8,334,175

Summary of Unaudited Condensed Consolidated Balance Sheets (in thousands)

	September 30, 2010		December 31, 2009
Assets
Current assets	$	24,645	$	44,981
Property and equipment, net		4,926		5,364
Other assets		3,175		3,048
Total assets	$	32,746	$	53,393
Liabilities and stockholders' equity
Current liabilities	$	18,888	$	41,263
Total long-term liabilities		4,105		2,626
Stockholders’ equity		9,753		9,504
Total liabilities and stockholders’ equity	$	32,746	$	53,393

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.

Contacts

Spire Corporation
Robert S. Lieberman, 781-275-6000
Chief Financial Officer & Treasurer
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Source: Spire Corporation