Spire Corporation Reports Results for First-Quarter 2009

BEDFORD, Mass.--(BUSINESS WIRE)--Spire Corporation (Nasdaq: SPIR), a global solar company providing turnkey solar factories and capital equipment to manufacture photovoltaic (PV) modules and cells worldwide, today reported revenues for the first-quarter ended March 31, 2009 of $12.3 million, a 15% decrease from $14.5 million for the same quarter of 2008. Net loss for the first-quarter of 2009 was $1.5 million which includes a gain of $1.54 million from the termination of a contract, or $0.18 per share, compared with a net loss of $523,000, or $0.06 per share, for the first-quarter of 2008.

“Spire Biomedical processing services continued to show good performance and our contract research and development activity increased substantially due to the start of newly awarded contracts. We have no additional update on our catheter product line other than we are continuing to evaluate strategic alternatives”

Net cash used in operating activities was $2.8 million for the three months ended March 31, 2009 compared to net cash provided by operating activities of $936,000 for the same period last year. As of March 31, 2009, Spire had $6.4 million in cash and cash equivalents of which $2.3 million is unrestricted. Other expenses were $129,000 for the first-quarter of 2009 compared to $304,000 for the first-quarter of 2008.

Roger G. Little, Chairman and CEO, said, “The ongoing global recession impacted our business in the first-quarter as PV companies continue to be cautious with their capital expansions and financing remains tight; this was a disappointing quarter. Our sales were down principally due to delayed acceptances on two substantial orders. Timing of delivery on large projects can cause our revenues to vary dramatically from quarter to quarter.”

“Overall, we continue to see tremendous opportunity in the market and although our bookings have slowed, we have seen our sales and marketing activities increase as our focus on the United States market opportunity is kicking in. The American Recovery and Reinvestment Act has a strong focus on renewable energy and an opportunity for buying American-made equipment.”

“Additionally, in the next several years, a significant shortfall is expected between the increase in demand for solar energy and available production capacity, leading to significant factory expansion and demand for new Spire Solar capital equipment. We have initiated a new ‘Come to America’ program to take advantage of these opportunities.”

Mr. Little went on to say, “Spire Semiconductor revenues in the first-quarter of 2009 decreased compared to the same period last year. However, we began shipping and billing for the first set of deliverables to the Department of Energy’s National Renewable Energy Laboratory under our $3.7 million, 20% cost share program to develop a 42% efficient concentrator solar cell.”

“Spire Biomedical processing services continued to show good performance and our contract research and development activity increased substantially due to the start of newly awarded contracts. We have no additional update on our catheter product line other than we are continuing to evaluate strategic alternatives,” concluded Mr. Little.

Conference Call Information

Spire Corporation will conduct a conference call for investors to discuss the information contained in this news release today at 4:30 p.m. EDT. On the call, Chairman and CEO, Roger G. Little and Chief Financial Officer and Treasurer, Christian Dufresne will discuss Spire’s first-quarter 2009 financial results, as well as the Company’s business outlook and growth strategy. During the conference call, the Company may answer questions concerning business and financial developments, trends, and other business and financial matters. The Company’s responses to these questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.

Those who wish to listen to the conference call webcast should visit the “Investors” section of the Company’s website at www.spirecorp.com. The live call can also be accessed by dialing 800-510-9691 (international dial-in number: 1-617-614-3453) with the passcode 289 86 946. If you are unable to listen to the live call, the webcast will be archived on the Company’s website.

About Spire Corporation

Spire Corporation is a global solar company providing turnkey production lines and capital equipment to manufacture photovoltaic modules and cells worldwide. Spire Semiconductor provides processing technology for Spire’s silicon solar cell manufacturing lines and produces and sells custom gallium arsenide cells for solar concentrator systems. For corporate or product information, contact Spire Corporation, “The Turnkey Solar Factory Company,” at 781-275-6000, or 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,
	2009		2008
Net sales and revenues	$12,294		$14,538
Gain on termination of contract	1,535		—
Loss from operations	(1,368)		(219)
Other income (expense), net	151		(174)
Loss on equity investment in joint venture	(280)		(130)
Loss before income taxes	(1,497)		(523)
Income tax provision	(27)		—
Net loss	$(1,524)		$ (523)
Loss per share - basic and diluted	$ (0.18)		$ (0.06)
Weighted average number of common and common equivalent shares outstanding - basic and diluted	8,333,132		8,322,919

Summary of Unaudited Condensed Consolidated Balance Sheets
(in thousands)
	March 31, 2009		December 31, 2008
Assets
Current assets	$57,971		$57,876
Property and equipment, net	6,290		6,089
Other assets	3,717		4,053
Total assets	$67,978		$68,018
Liabilities and Stockholders' Equity
Current liabilities	$53,726		$51,041
Total long-term liabilities	2,038		3,459
Stockholders’ equity	12,214		13,518
Total liabilities and stockholders’ equity	$67,978		$68,018

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 Form 10-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.