Spire Corp: Results for Q4 and Full Year 2011
Spire Corporation ("Spire") (Nasdaq: SPIR), a diversified global company providing solar photovoltaic (PV) equipment and systems, biomedical processing services and optoelectronic components announced today revenues from continuing operations for the year ended December 31, 2011 of $61.6 million, a 22.8% decrease from $79.8 million in 2010. Net loss for the year ended December 31, 2011 was $1.5 million, or $0.18 per diluted share, compared to a net loss of $0.4 million, or $0.05 per diluted share, for the same period of 2010. These results include a gain on a settlement with a contract manufacturer of $1.4 million, net of a tax provision of $0.9 million, or $0.16 per diluted share for 2011. Fiscal year 2010 results include a gain on the sale of the assets of its Medical Device business to Bard Access Systems, Inc. of $1.6 million, net of a tax provision of $1.0 million, or $0.20 per diluted share. In addition, the Company recorded gains of $0.4 million and $1.9 million, respectively, on terminations of contracts for 2011 and 2010.
Spire’s revenues for the fourth-quarter ended December 31, 2011 were $19.5 million from continuing operations, an increase of 8.5% from $18.0 million in the fourth-quarter of 2010. Net income for the quarter was $1.6 million, or $0.19 per diluted share, compared to a net loss of $0.2 million, or ($0.02) per diluted share, for the fourth-quarter of 2010. Spire recorded net income from continuing operations of $0.2 million in the fourth-quarter of 2011 compared to a net loss from continuing operations of $0.2 million in the fourth-quarter of 2010.
Gross margin for fiscal year 2011 was $12.5 million, or 20.3% of revenue, compared to $14.7 million, or 18.4% of revenue for fiscal year 2010, representing an improvement in gross margin percentage of 10.3% over the prior year.
Net cash used in operating activities of continuing operations was $3.1 million for the year ended 2011 as compared to net cash used in operating activities of continuing operations of $2.4 million for the same period last year. At year-end 2011, Spire had cash and cash equivalents of $4.8 million as compared to $6.3 million at December 31, 2010.
Roger G. Little, Chairman and CEO, stated “I am pleased with our revenue performance as evidenced by the top line growth on a quarter over quarter basis. Our Solar Business comprised 82% of our total revenue in 2011 which included the delivery of several Turn-Key Module Lines and a Back-End Thin Line along with increased volume for our high margin solar Simulators. The operating improvements are a result of the Company focusing on our core competencies, continued process improvements for our PV equipment business, and pursuing cost containment measures.”
Mr. Little continued, “The new staff additions to the Engineering Procurement and Construction business unit has help support the completion of a two megawatt solar system installed during the fourth-quarter of fiscal year 2011.
About Spire Corporation
Spire Corporation is a diversified company serving the solar energy, biomedical, telecommunications and defense industries worldwide with innovative products and services based upon a common technology platform. For further details on the Company and its products, please visit www.spirecorp.com.
Spire Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
Three Months Ended
2011 2010 2011 2010
Net sales and revenues
$ 19,511 $ 17,987 $ 61,558 $ 79,842
Gain on termination of contracts
409 1,051 409 1,888
Loss from continuing operations
(635 ) (176 ) (3,612 ) (2,835 )
Loss from continuing operations before income tax benefit
(676 ) (200 ) (3,745 ) (3,043 )
Income tax benefit – continuing operations
908 0 890 1,146
Net income (loss) from continuing operations
232 (200 ) (2,855 ) (1,897 )
Loss from discontinued operations before sale of business unit
0 0 0 (123 )
Gain on sale of discontinued operations & legal settlement –
net of taxes
1,372 0 1,372 1,612
Net income (loss)
$ 1,604 $ (200 ) $ (1,483 ) $ (408 )
Basic and diluted income (loss) per share:
From continuing operations after income taxes $ 0.03 $ (0.02 ) $ (0.34 ) $ (0.23 )
From discontinued operations, net of tax 0.16 0.00 0.16 0.18
Basic income (loss) per share $ 0.19 $ (0.02 ) $ (0.18 ) $ (0.05 )
Weighted average number of common and common
equivalent shares outstanding – basic
8,458,285 8,356,044 8,386,188 8,341,356
Weighted average number of common and common
equivalent shares outstanding – diluted
8,459,469 8,356,044 8,386,188 8,341,356
Summary of Condensed Consolidated Balance Sheet
Current assets $ 17,636
Net property and equipment 3,281
Other assets 3,261
Total assets $ 24,178
Liabilities and stockholders' equity
Current liabilities $ 11,936
Total long-term liabilities 3,532
Stockholders’ equity 8,710
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.
Robert S. Lieberman, 781-275-6000
CFO & Treasurer