Spire Corporation Reports Results for Third-Quarter 2013 Business Wire BEDFORD, Mass. -- November 19, 2013 Spire Corporation (“Spire”) (OTCQB: SPIR), a global solar company providing capital equipment and turn-key manufacturing lines to produce photovoltaic (“PV”) modules, providing engineering, procurement and construction (EPC) integration services for solar systems, and optoelectronic thin-film services today reported revenues from continuing operations for the third-quarter ended September30, 2013 of $4.2million, as well as $4.2million for the same quarter of 2012. During the third quarter, the Company completed a transaction 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. Net loss for the third-quarter of 2013 was $2.2 million, or $0.22 per diluted share, compared with a net loss of $2.3 million, or $0.27 per diluted share, for the third-quarter of 2012. Loss from continuing operations was $2.2 million for the three months ended September 30, 2013, as compared to net loss from continuing operations of $2.0million for the same period in 2012. Gross margin for the third-quarter of 2013 was $1.2 million, or 29% of revenue, compared to $1.0million, or 23% of revenue, for the same period in 2012, representing an increase in gross margin percentage of 25% for the three months ended September 30, 2013, primarily due to increased margins realized in the equipment and EPC market segments. Net cash used in operating activities was $3.7million for the nine months ended September 30, 2013, which includes $0.2 million of cash used in operating activities of discontinued operations, as compared to net cash used in operating activities of $6.3 million for the nine months ended September30, 2012 which includes $1.7 million of cash used in operating activities of discontinued operations. As of September 30, 2013, Spire had $5.9 million of unrestricted cash and cash equivalents. Roger G. Little, Chairman and CEO, says, "With the divestiture of the Biomedical business unit, the Company was able to monetize its value on a standalone basis resulting in a cash infusion while still owning a portion of its equity. We can now concentrate resources on other opportunities." "While the global market for PV systems continues to expand, we continue to experience low demand for module manufacturing equipment as a result of overcapacity in the industry. Many analysts believe that in 2014 this overcapacity will be absorbed and new capacity will be brought on line ending more than a two year drought." Mr. Little concluded, "We have made substantial cost reductions during this period. We believe we are well positioned to capitalize on these market trends which include equipment re-tooling, the growth or 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 Unaudited Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2013 2012 2013 2012 Net sales and $ 4,154 $ 4,228 $ 10,966 $ 18,323 revenues Operating loss from (2,211 ) (2,018 ) (6,581 ) (5,414 ) continuing operations Total other (20 ) (39 ) (58 ) (103 ) expense, net Loss from continuing operations before (2,231 ) (2,057 ) (6,639 ) (5,517 ) income tax benefit (provision) Income tax benefit (provision) – (1 ) 24 (3 ) 2,016 continuing operations Loss from continuing (2,232 ) (2,033 ) (6,642 ) (3,501 ) operations Income (loss) from discontinued -- (250 ) -- 2,761 operations, net of tax Net loss (2,232 ) (2,283 ) (6,642 ) (740 ) Less: Net loss attributable to (187 ) -- (187 ) -- noncontrolling interest Net loss attributable to common $ (2,045 ) $ (2,283 ) $ (6,455 ) $ (740 ) stockholders Basic and diluted income (loss) per share: From continuing $ (0.22 ) $ (0.24 ) $ (0.70 ) $ (0.41 ) operations, net of tax From discontinued -- (0.03 ) -- 0.32 operations, net of tax Basic and diluted loss $ (0. 22 ) $ (0.27 ) $ (0.70 ) $ (0.09 ) per share Weighted average number of common and common equivalent 9,207,874 8,562,633 9,165,844 8,562,633 shares outstanding – basic and diluted Summary of Unaudited Condensed Consolidated Balance Sheet (in thousands) September 30, 2013 December 31, 2012 Assets Current assets $ 13,114 $ 12,072 Property and equipment - net 959 1,197 Other assets 3,622 3,356 Total assets $ 17,695 $ 16,625 Liabilities and stockholders' equity Current liabilities $ 7,396 $ 5,456 Total long-term liabilities 9,211 3,717 Stockholders’ equity 1,088 7,452 Total liabilities and $ 17,695 $ 16,625 stockholders’ equity 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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Spire Corporation Reports Results for Third-Quarter 2013
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