Spire Corporation Reports Results for Fourth-Quarter and Year-End 2012

  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