Spire Corporation Reports Results for Fourth-Quarter and Year-End 2012 Business Wire BEDFORD, Mass. -- March 29, 2013 Spire Corporation ("Spire") (Nasdaq: SPIR), a global solar company providing capital equipment and turn-key manufacturing lines to produce photovoltaic ("PV") modules, engineering, procurement and construction (“EPC”) integration services for solar systems and biomedical processing services, announced today revenues from continuing operations for the year ended December31, 2012 of $22.1million, a 64% decrease from $58.7million in 2011. Net loss for the year ended December 31, 2012 was $1.9million, or $0.22 per diluted share, compared to a net loss of $1.5million, or $0.18 per diluted share, for the same period of 2011. These results include a gain on the sale of its Semiconductor business unit of $3.5 million, net of a tax provision of $1.9 million or $0.34 per diluted share in 2012. Fiscal year 2011 net operating results reflect a gain on a settlement with a contract manufacturer of $1.4 million, net of a tax provision of $0.9 million, or $0.16per diluted share in 2011. In addition, the Company recorded a gain of $0.4million on a termination of a contract in 2011. Spire’s revenues from continuing operations for the fourth-quarter ended December 31, 2012 were $3.8 million, a decrease of 81% from $18.7million in the fourth-quarter of 2011. The decrease was primarily due to non-recurring solar systems revenue of $8.3 million coupled with continued softness in manufacturing expansion resulting in reduced solar equipment revenues of $7.6 million. Net income for the quarter was $1.1million, or $0.13 per diluted share, compared to net income of $1.6 million, or $0.19per diluted share, for the fourth-quarter of 2011. Spire recorded a net loss from continuing operations of $1.2million in the fourth-quarter of 2012, compared to a net income from continuing operations of $0.2million in the fourth-quarter of 2011, as adjusted for discontinued operations of the Semiconductor business unit. Gross margin from continuing operations for fiscal year 2012 was $5.3 million, or 24% of revenue, compared to $14.0 million, or 24% of revenue for fiscal year 2011. Net cash used in operating activities of continuing operations was $6.1million for the year ended 2012, as compared to net cash used in operating activities of continuing operations of $1.9 million for the same period last year. At year-end 2012, Spire had cash and cash equivalents of $3.0million, as compared to $4.8 million at December 31, 2011. Roger G. Little, Chairman and CEO, stated, “Although we are seeing growth in PV systems on a global basis, the continued oversupply of PV modules as it relates to market demand has resulted in a reduced demand for PV manufacturing equipment which is expected to continue until the module supply/demand imbalance is resolved. There is virtually no expansion of current module manufacturers. In addition, many module manufacturers have gone out of business resulting in a flood of used equipment on the market. The Company has developed and implemented significant cost reduction efforts, and is looking at opportunities to expand revenue in other solar markets, and to identify potential strategic alternatives that could mitigate the decline in revenue as a result of global economic conditions.” Mr. Little continued, “Based on current industry forecasts, the Company expects the PV equipment market to exhibit a recovery and expansion cycle beginning in late 2013 or the first half of 2014, with the expected increase in global demand extending through at least the next several years. As this resurgence evolves, the Company believes that it is well positioned to capitalize on the market trends, including equipment re-tooling, the growth of regional PV module manufacturing, and PV module supply chain transactions." 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 Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts) Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011 Net sales $ 3,787 $ 18,963 $ 22,110 $ 58,742 and revenues Gain on termination 35 409 -- 409 of contract Income (loss) from (1,189 ) 239 (6,603 ) (843 ) continuing operations Income (loss) from continuing operations (1,213 ) 198 (6,730 ) (976 ) before income tax benefit Income tax benefit (provision) (65 ) 908 1,951 890 – continuing operations Net income (loss) from (1,278 ) 1,106 (4,779 ) (86 ) continuing operations Loss from discontinued operations -- (874 ) (580 ) (2,769 ) before sale of business unit Gain on sale of discontinued operations & 160 1,372 3,501 1,372 legal settlement – net of taxes Net income $ (1,118 ) $ 1,604 $ (1,858 ) $ (1,483 ) (loss) Basic and diluted income (loss) per share: From continuing operations $ (0.15 ) $ 0.03 $ (0.56 ) $ (0.01 ) after income taxes From discontinued 0.02 0.16 0.34 (0.17 ) operations, net of tax Basic income (loss) per $ (0.13 ) $ 0.19 $ (0.22 ) $ (0.18 ) share Weighted average number of common and common equivalent shares 8,627,850 8,458,285 8,579,027 8,386,188 outstanding – basic Weighted average number of common and common equivalent shares 8,627,850 8,459,469 8,579,027 8,386,188 outstanding – diluted Summary of Condensed Consolidated Balance Sheet December 31, 2012 Assets Current assets $ 12,072 Net property and equipment 1,197 Other assets 3,356 Total assets $ 16,625 Liabilities and stockholders' equity Current liabilities $ 5,456 Total long-term liabilities 3,717 Stockholders’ equity 7,452 Total liabilities and stockholders’ equity $ 16,625 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 Form10-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. Contact: Spire Corporation Robert S. Lieberman, 781-275-6000 CFO & Treasurer
Spire Corporation Reports Results for Fourth-Quarter and Year-End 2012
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