Spire Corporation (“Spire” or the "Company") (OTCQB: SPIR), a global solar company providing capital equipment and turn-key manufacturing lines to produce photovoltaic (“PV”) modules and optoelectronics thin film services, announced today revenues for the first-quarter ended March 31, 2014 of $4.1 million, a 26% increase from $3.2 million for the same quarter of 2013 primarily due to an increase in equipment research and development and an increase in solar module equipment.
Net loss attributable to common stockholders for the first-quarter of 2014 was $3.1 million, or $0.34 per share compared with net loss attributable to common stockholders of $2.6 million or $0.29 per share for the first-quarter of 2013. Net loss was $2.7 million for the three months ended March 31, 2014 compared to $2.6 million for the same quarter in 2013.
Gross margin for the first-quarter of 2014 was $0.5 million, or 12% of revenue, compared to $0.2 million, or 7% of revenue for the same period in 2013.
Net cash used in operating activities was $1.2 million for the three months ended March 31, 2014, as compared to net cash used in operating activities of $0.8 million for the three months ended March 31, 2013. As of March 31, 2014, Spire had $2.4 million in cash and cash equivalents.
These results include the completion of a transaction previously reported in which substantially all of the assets and assumption of certain liabilities related to Spire’s biomedical business were acquired by N2 Biomedical, LLC. As this transaction is being identified as giving rise to a variable interest entity and Spire is determined to be the primary beneficiary, the assets, liabilities and results of operations of N2 Biomedical, LLC are consolidated into the Company’s financial statements. In addition, the 2013 transaction gave rise to a deemed dividend in the amount of $9.5 million which is not reported as a gain for financial reporting purposes and is eliminated in consolidation.
Rodger W. LaFavre, President and CEO, stated, “We are seeing strong indications of realized and sustainable growth in the global PV market. There is evidence of heightened sales activity in specific geographies that Spire is well positioned to support. This quarter’s revenue increase on a year over year basis is encouraging and we expect this to continue into the second half of 2014.”
Mr. LaFavre continued, “With analyst’s predictions of sequential PV equipment growth in key markets, coupled with the consumption of excess production capacity we have seen a notable increase in equipment sales to date and bookings of module line systems. We continue to focus on working capital, such that we can make prudent financial decisions while supporting a growing business.”
About Spire Corporation
Spire Corporation is a global solar company providing technology, equipment and turn-key production lines to manufacture photovoltaic modules and providing optoelectronics thin film services. For further details on the Company and its products, please visit www.spirecorp.com.
Spire Corporation and Subsidiaries | |||||
Condensed Consolidated Statements of Operations | |||||
(in thousands, except share and per share amounts) | |||||
(unaudited) | |||||
| Three Months Ended March 31, | |||||
| 2014 | 2013 | ||||
Net sales and revenues | $ 4,086 | $ 3,238 | |||
Loss from operations | (2,629) | (2,602) | |||
Loss from operations before income tax provision | (2,704) | (2,626) | |||
Income tax provision | -- | (2) | |||
Net Loss | (2,704) | (2,628) | |||
Less: Net income attributable to noncontrolling interest | 418 | -- | |||
Net loss attributable to common stockholders | $(3,122) | $(2,628) | |||
| Basic and diluted loss per share | $ (0.34) | $ (0.29) | |||
Weighted average number of common and common equivalent shares outstanding – basic and diluted | 9,207,874 | 9,080,385 | |||
Summary of Unaudited Condensed Consolidated Balance Sheet | |||||
(in thousands) | |||||
March 31, |
December 31, | ||||
Assets | |||||
| Current assets | $12,401 | $14,696 | |||
| Property and equipment - net | 903 | 941 | |||
| Other assets | 421 | 432 | |||
Total assets | $13,725 | $16,069 | |||
Liabilities and stockholders' deficit | |||||
| Current liabilities | $10,993 | $ 10,992 | |||
| Total long-term liabilities | 5,769 | 5,790 | |||
| Stockholders’ deficit | (3,037) | (713) | |||
| Total liabilities and stockholders’ deficit | $13,725 | $16,069 | |||
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:
Robert S. Lieberman, 781-275-6000
CFO &
Treasurer
