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Spire Corporation Reports Results for Third-Quarter 2013

  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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