Revenues for the three months ended September 30, 2004 were $9.2 million as compared to $8.8 million in the same period last year. For the year, revenues totaled $34.2 million in fiscal 2004 compared with $26.9 million in fiscal 2003. David Eisenhaure, SatCon's president and chief executive officer, said: "Our revenues for the fiscal year increased by 27% compared to a year ago and our backlog at year end was $24 million, the highest quarterly backlog number that we've had since we began reporting quarterly backlog data about two years ago."
“On an operating basis we lost $4 million for the fiscal year. In fiscal 2003, we had operating losses in excess of $26 million. That's a significant improvement and one that we can credit to a substantial increase in our business and a major reduction of our cost structure.”
"Our net operating loss totaled $1.5 million for the fourth quarter - an improvement from the $2.2 million recorded in last year's fourth quarter," continued Eisenhaure. "On an operating basis we lost $4 million for the fiscal year. In fiscal 2003, we had operating losses in excess of $26 million. That's a significant improvement and one that we can credit to a substantial increase in our business and a major reduction of our cost structure."
From an operational standpoint, we have seen great success from our Power Systems group. $5 million of the $7 million in revenue increases was from Power Systems. We have also seen modest increases in other divisions as well. As we look forward to 2005, we see improved sales in all of our markets, including defense systems, electronics, alternative energy, test and measurement and industrial automation. We are also confident that we can continue to manage our costs, increase our backlog and grow profitably in the future.
"As you read in our recent release we completed an $8 million financing transaction with several unrelated institutional investors. We intend to use the net proceeds from the financing for general corporate purposes, in particular to support our growth opportunities in 2005 and beyond. We expect to grow revenues at a double-digit rate in fiscal 2005 versus fiscal 2004 and some of these opportunities, like Rotary UPS sales might require commitment of funds in advance of collecting revenue. These new funds will allow us to capitalize on these opportunities that we might otherwise not be able to accept."
About SatCon Technology Corporation
SatCon Technology Corporation manufactures and sells power Control products for critical military systems, alternative energy applications and in high-reliability industrial automation. Products include inverter electronics from 5 kilowatts to 5 megawatts; power switches; and hybrid microcircuits for industrial, medical, military and aerospace applications. SatCon also develops and builds digital power electronics and high-efficiency machines and control systems for a variety of defense applications. For further information, please visit the SatCon website at www.satcon.com.
Statements made in this document that are not historical facts or which apply prospectively are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the Company's expectation. There can be no assurance that the company will be successful in achieving any of the objectives that are stated within the release, and such failure to achieve those objectives could have a material, adverse effect on the future of the Company. Additional information concerning risk factors is contained from time to time in the Company's SEC filings. The Company expressly disclaims any obligation to update the information contained in this release.
SatCon Technology Corporation
Consolidated Statements of Operations
($ in thousands, except Three months ended Twelve Months ended
per share data) September 30, September 30,
2004 2003 2004 2003
--------- -------- --------- --------
(Unaudited) (Unaudited)
Product revenue $7,717 $7,056 $26,971 $21,648
Funded research and
development revenue 1,483 1,728 7,187 5,282
----------------------------------------------------------------------
Total revenue 9,200 8,784 34,158 26,930
----------------------------------------------------------------------
Operating expenses:
Cost of product revenue 6,528 6,223 22,373 26,019
Research and development
expenses:
Funded research and
development expenses 1,771 2,011 5,982 5,038
Unfunded research and
development expenses (2) 65 3 1,492
----------------------------------------------------------------------
Total research and
development expenses 1,769 2,076 5,985 6,530
Selling, general and
administrative expenses 2,307 2,589 9,363 13,564
Amortization of intangibles 112 112 447 505
Write-off of impaired long-
lived assets - - - 700
Write-off of impaired
goodwill and intangible
assets - - - 5,751
----------------------------------------------------------------------
Total operating expenses 10,716 11,000 38,168 53,069
----------------------------------------------------------------------
Operating loss (1,516) (2,216) (4,010) (26,139)
Unrealized loss on warrants (10) 69 (90) 82
Unrealized gain on Series B
warrants - - 35 -
Unrealized loss on Series B
warrants - (1,879) - (1,879)
Write-down of investment in
Beacon Power - - - (542)
Realized gain from sale of
Beacon Power Corporate
Common Stock - 104 - 899
Other income/(expense) (4) 15 (1) 71
Interest income 3 - 12 5
Interest expense (73) (3,293) (6,905) (3,978)
----------------------------------------------------------------------
Net loss $(1,600) $(7,200) $(10,959) $(31,481)
======================================================================
Earnings per share, basic and
diluted:
Net loss ($0.06) ($0.37) ($0.41) ($1.72)
======================================================================
Shares used for computing
basic and diluted EPS 28,201 19,435 26,834 18,258
======================================================================
SATCON TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
September 30, September 30,
2004 2003
ASSETS --------------------------
Current assets:
Cash and cash equivalents $1,171,152 $728,415
Restricted cash and cash equivalents 1,011,900 506,776
Accounts receivable, net of allowance of
$848,565 and $937,030 at September 30,
2004 and 2003, respectively 6,274,178 5,498,998
Unbilled contract costs and fees 447,405 802,804
Funded research and development expenses in
excess of billings 552,768 150,411
Inventory 6,184,672 5,802,120
Prepaid expenses and other current assets 687,083 726,357
--------------------------
Total current assets 16,329,158 14,215,881
Warrants to purchase common stock 7,036 97,490
Property and equipment, net 5,913,211 6,927,411
Goodwill, net 704,362 704,362
Intangibles, net 2,391,193 2,918,188
Other long-term assets 501,634 118,610
--------------------------
Total assets $25,846,594 $24,981,942
==========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Bank line of credit $-- $1,801,869
Current portion of long-term debt 184,177 271,090
Accounts payable 3,823,249 5,967,651
Accrued payroll and payroll related
expenses 1,449,349 1,340,244
Other accrued expenses 2,412,409 2,917,176
Accrued contract losses 775,146 387,778
Deferred revenue 2,048,442 2,447,054
Accrued restructuring costs 495,612 495,612
--------------------------
Total current liabilities 11,188,384 15,628,474
Redeemable convertible Series A preferred
stock (132.7 shares issued and outstanding;
face value: $12,500 per share; liquidation
preference: 150%) -- 1,658,750
Redeemable convertible Series B preferred
stock (425 shares issued and outstanding;
face value $5,000 per share; liquidation
preference 100%) 2,125,000 --
Convertible subordinated debentures (Face
value: $762,500; liquidation preference:
150%) -- 762,500
Long-term debt, net of current portion 311,178 501,590
Other long-term liabilities 563,372 268,482
Commitments and contingencies (Note L)
Stockholders' equity:
Common stock; $0.01 par value, 50,000,000
shares authorized; 28,226,010 and
21,023,200 shares issued and outstanding
at September 30, 2004 and 2003,
respectively 282,261 210,232
Additional paid-in capital 139,208,000 122,792,791
Accumulated deficit (127,659,993)(116,701,523)
Accumulated other comprehensive loss (171,608) (139,354)
--------------------------
Total stockholders' equity 11,658,660 6,162,146
--------------------------
Total liabilities and stockholders' equity $25,846,594 $24,981,942
==========================
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