Satcon Technology: Q2 Results
Satcon Technology Corporation, a leading provider of utility scale power conversion solutions for the renewable energy market, announced its results for the second quarter ended June 30, 2011.
Three Months Ended
(in millions except margin data)
Revenue $45.5 $27.6 64.7%
Gross Margin 8.0% 21.0% (37%)
Operating Income (Loss) ($20.1) ($5.3) (283%)
Revenue for the second quarter of 2011 was $45.5 million, in line with its previously revised guidance of $45-$47 million, and an increase of approximately 64.7% over the same period last year.
"The market environment in the second quarter was challenging. Despite the strength of North America, the market conditions in Europe and Asia had negative effects on our overall performance," said Steve Rhoades, President and Chief Executive Officer of Satcon. "In addition, we incurred one-time charges associated with inventory, restructuring, and the strategic decision to accelerate product development. Although these measures have resulted in a higher than expected operating loss, they have effectively strengthened our ability to achieve our revenue and cost targets by the end of 2011."
During the second quarter, the company shipped 195 MWs of its industry-leading PowerGate(R) Plus, Prism(R) Platform, and Equinox(R) solutions. North America continued to be the company's strongest performing region, representing 80% of total revenue, with 12% coming from Asia and 8% from Europe. Satcon's utility scale solutions of 250kW and above continued to be the company's strongest performing offering, shipping over 167 MW, and representing 86% of total units shipped in the quarter.
At June 30, 2011, the company's backlog, which consists of purchase orders from its customers, was $55.2 million. Backlog from North America represented 74% of orders to be delivered. Asia contributed 15%, while Europe contributed 11%.
For the third quarter of 2011 the company expects revenue to be in the range of $45 million to $52 million, and gross margin percentage to be in the mid-teens. "Going forward, we see a strong North American market with upside coming from Asia and Europe," continued Rhoades. "We believe that the measures we have taken in the quarter give us the flexibility to adapt to the current market volatility, position us to achieve our guidance, and put us on a path to a sustainable business."
Satcon Technology Corporation is a leading provider of utility-grade power conversion solutions for the renewable energy market, enabling the industry's most advanced, reliable and proven clean energy alternatives. For more than ten years, Satcon has designed and delivered advanced power conversion products that enable large-scale producers of renewable energy to convert the clean energy they produce into grid-connected efficient and reliable power. To learn more about Satcon, please visit http://www.Satcon.com.
Statements made in this document that are not historical facts or which apply prospectively, including those relating to preliminary Q2 2011 financial results, expected cost savings from our workforce reduction, and the use of proceeds from the offering, are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "will," "intends," "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. Additional information concerning risk factors is contained from time to time in the company's SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this 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 expressly disclaims any obligation to update the information contained in this release.
SOURCE: Satcon Technology Corporation
Satcon Technology Corporation
Leah Gibson, 617-897-2400