Spire Corporation Reports Results for First-Quarter 2013

  Spire Corporation Reports Results for First-Quarter 2013

Business Wire

BEDFORD, Mass. -- May 10, 2013

Spire Corporation ("Spire") (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 and biomedical processing services,
today reported revenues from continuing operations for the first-quarter ended
March 31, 2013 of $3.2million, a 57% decrease from $7.5million for the same
quarter of 2012 primarily due to a decrease in solar equipment volume.

Net loss for the first-quarter of 2013 was $2.6million, or $0.29per share
compared with net income of $3.4million or $0.39per share for the
first-quarter of 2012. Net loss from continuing operations was $2.6million
for the three months ended March 31, 2013, as compared to net income of
$0.4million for the first-quarter of 2012. Net income for the first-quarter
of 2012 includes net income from discontinued operations, net of taxes of $3.0
million or $0.35 per share related to the Company’s Semiconductor business
unit, which was sold in March 2012 and accordingly was classified as
discontinued operations.

Gross margin for the first-quarter of 2013 was $0.2 million, or 7% of revenue,
compared to $2.0million, or 26% of revenue for the same period in 2012.

Net cash used in operating activities was $0.8million for the three months
ended March 31, 2013, as compared to net cash used in operating activities of
$3.2 million for the three months ended March31, 2012, which includes $1.6
million of cash used in operating activities of discontinued operations. As of
March 31, 2013, Spire had $2.2 million in cash and cash equivalents.

Roger G. Little, Chairman and CEO, stated, “The solar industry continued to
experience a severe slowdown in manufacturing expansion driven by sustained
worldwide overcapacity. Although we are seeing evidence of some growth in PV
systems on a global basis, this continued oversupply and imbalance of PV
modules as it relates to market demand has resulted in a dramatic reduction in
demand for PV manufacturing equipment which is expected to continue until the
module supply/demand disparity is resolved. As a result, there is virtually no
expansion of current module manufacturers to absorb existing equipment in
inventory. In addition, we are seeing many module manufacturers going out of
business, resulting in a flood of used equipment on the market. The Company
has developed and continues to implement 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, “Most recently the Company was awarded a contract to
install a 228 kilowatt PV system in Connecticut; the Company believes the
growth potential in this vertical market can partially offset the reduction in
the solar equipment segment. Additionally, a 2megawatt PV system installed at
Berkshire School in 2012 by Spire Corporation was noted as HonorableMention
for 2013 Photovoltaic Projects of Distinction Award for PV Project of the Year
by Solar Energy Industries Association and Solar Energy Power Association.”

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
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
                                                 
                                                 Three Months Ended March 31,
                                                 2013           2012
Net sales and revenues                           $ 3,238        $ 7,475     
Operating loss from continuing operations          (2,602    )     (1,609    )
Total other expense, net                           ( 24      )     ( 29      )
Income tax benefit (provision) –                  (2        )    1,992     
continuing operations
Income (loss) from continuing operations           (2,628    )     354
Income from discontinued operations – net         --            3,011     
of tax
Net income (loss)                                $ (2,628    )   $ 3,365     
Basic and diluted income (loss) per share:
From continuing operations, net of tax           $ ( 0.29    )   $ 0.04
From discontinued operations, net of tax          --            0.35      
Basic and diluted income (loss) per share        $ (0.29     )   $ 0.39      
Weighted average number of common and
common
equivalent shares outstanding – basic             9,080,385     8,562,633 
Weighted average number of common and
common
equivalent shares outstanding – diluted           9,080,385     8,565,487 
                                                                             

                                                        
Summary of Unaudited Condensed Consolidated Balance Sheet
(in thousands)
                                                             
                                                 March 31,   December 31,
                                                 2013        2012
Assets
Current assets                                   $  10,198   $   12,072
Property and equipment - net                        1,144        1,197
Other assets                                       3,724       3,356
Total assets                                     $  15,066   $   16,625
Liabilities and stockholders' equity
Current liabilities                              $  5,815    $   5,456
Total long-term liabilities                         4,068        3,717
Stockholders’ equity                               5,183       7,452
Total liabilities and stockholders’ equity       $  15,066   $   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
 
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