20.8.2003: Meldung: Spire Corp.: Second Quarter 2003 Results
Tuesday August 19, 6:57 pm ET
BEDFORD, Mass.-- Aug. 19, 2003-- -- Spire Receives $5 Million Catheter License Payment Spire Acquires Bandwidth Semiconductor, LLC
Spire Awarded $5.2 Million Cost Shared Contract to Develop Super Sized Module Production Line
Spire Receives $750,000 NIH Grant to Develop Nanotechnology Coatings for Orthopedic Devices
Spire Corporation (Nasdaq: SPIR - News), which provides products and services, based upon a common technology platform, to the solar energy and biomedical industries worldwide, today reported revenues for the second quarter ended June 30, 2003 of $3,755,000, an 18% decrease, compared to $4,561,000 for the second quarter of 2002. Net earnings, including the gain on the second payment for the sale of a patent license, were $3,032,000, or $0.44 per share, compared to net earnings of $1,000, or $0.00 per share, for the second quarter of 2002.
Revenues for the six months ended June 30, 2003 were $6,714,000, a decrease of 15% from $7,888,000 for the same period of 2002. Net earnings for the six months were $2,258,000, or $0.33 per share, including the gain of $5,000,000 for the second payment from the sale of Spire"s catheter patent license to Bard Access Systems, Inc.
As of June 30, 2003, cash rose to $11,057,000 compared with $7,799,000 at December 31, 2002. The increase in cash was driven primarily by the receipt of the second milestone payment but decreased by the payment of the cash purchase price associated with the acquisition of Bandwidth Semiconductor, LLC. As of June 30, 2003, Spire had no outstanding bank debt.
Total assets increased to $26,541,000 on June 30, 2003 from $17,772,000 on December 31, 2002, while total liabilities also increased to $12,495,000 from $5,997,000 on December 31, 2002. These movements primarily reflected the recording of additions to property, plant and equipment and capital lease obligations arising from transactions related to the acquisition of Bandwidth Semiconductor, as well as the receipt of the cash milestone payment.
Roger G. Little, President and CEO of Spire Corporation, said, "We had a lot of activity in the second quarter in all areas of our business. We "re-acquired" our Optoelectronics business in the form of Bandwidth Semiconductor and began to direct its energy and resources toward our Biophotonics Lifesciences Initiative. We received the second $5 million payment from Bard in our catheter licensing transaction, giving us the resources to make investments in what we believe are major growth areas for the Company. We received new contracts to help further advance in our important solar equipment and orthopedics surface treatment markets."
"Revenues grew in all of our product lines from the first quarter however, so did costs. The cost of insurance, audit, legal and other forms of corporate services were considerably more than they have been in the past as a result of increased activity and audit compliance."
"Operationally, our solar equipment and solar systems revenues were greater than in the first quarter of 2003 but still not sufficient to cover their associated cost. However, a number of new orders were received during the quarter. Catheter sales for the quarter were comparable to those in the first quarter. Biomedical processing services and research and development contracting both performed well. We were able to book only six days of Bandwidth"s revenues during the quarter due to the timing of the acquisition."
"We are pleased that the Company"s balance sheet is strong, providing both liquidity for current operations and flexibility to pursue future strategic development," Mr. Little concluded.
Bard License Payment: During the second quarter of 2003, Spire received a second $5 million payment as part of its catheter patent license transaction with Bard Access Systems, Inc. Under the terms of the October 2002 agreement, Spire sold its exclusive patent license for a hemodialysis split-tip catheter to Bard Access Systems, Inc., a wholly owned subsidiary of C.R. Bard, Inc., in exchange for up to $16 million and a sublicense. Spire received an initial payment of $5 million upon execution of the agreement. The $5 million payment received in the second quarter of 2003 was for the first commercial sale of Bard"s catheter. Spire will receive an additional $6 million upon achievement of certain milestones by Bard.
Bandwidth Semiconductor, LLC Acquisition: Also during the quarter, Spire acquired Bandwidth Semiconductor, LLC of Hudson, New Hampshire, a wholly owned subsidiary of Stratos Lightwave, Inc. of Chicago. Methode Electronics, Inc. of Chicago formed Bandwidth Semiconductor as the entity to conduct Spire"s Optoelectronics business, which it acquired in 1999. In 2000, Methode Electronics spun off Stratos Lightwave in an initial public offering. Bandwidth can continue to grow its underlying defense and telecommunications business while providing key optoelectronic device building blocks to allow Spire and other manufacturers to take proprietary positions in the lifesciences instrument market. We intend to expand Bandwidth"s activities to support Spire"s important Biophotonics Lifesciences Initiative.
Super Sized Module Contract Award: Spire has been awarded a $5.2 million cost-shared contract from the U.S. Department of Energy"s National Renewable Energy Laboratories ("NREL") to develop automated manufacturing processes for fabricating large-scale solar electric modules. This contract will enhance Spire"s capabilities for building high-volume production equipment that can assemble solar modules as large as 10 feet by 8 feet or more than five times the size of today"s standard size module. We believe these new modules can be used to cover contaminated land sites with large utility-connected arrays to generate clean energy.
Nanotechnology Coating Orthopedic Contract Award: Spire received a two-year, $750,000 SBIR Phase II grant from the National Institute of Arthritis and Musculoskeletal and Skin Diseases to develop nanotechnology coatings. Under the grant, Spire will develop hard, extremely adherent nanocrystalline coatings for orthopedic implants. We are committed to continually developing new and innovative approaches for our orthopedic device customers.
For more information, please visit www.spirecorp.com.
David R. Lipinski, 781-275-6000
Source: Spire Corporation