Spire Corporation Reports Results for Second-Quarter 2014

Published August 18th 2014 at 2:31pm
Spire Solar 
August 13, 2014 - Spire Corporation announced today revenues for the second-quarter ended June 30, 2014 of $3.8 million, an 8% increase from $3.6 million for the same quarter of 2013 primarily due to an increase in solar module equipment sales.

Net loss attributable to common stockholders for the second-quarter of 2014 was $1.4 million, or $0.16 per share, compared with a net loss attributable to common stockholders of $1.8 million, or $0.19 per share, for the second-quarter of 2013. Net loss was $1.1 million for the three months ended June 30, 2014 compared to net loss of $1.8 million for the same period in 2013.

Gross margin for the second-quarter of 2014 was $0.7 million, or 19% of revenue, compared to $0.5 million, or 14% of revenue, for the same period in 2013.

Net cash used in operating activities was $1.9 million for the six months ended June 30, 2014, compared to net cash used in operating activities of $1.9 million for the six months ended June 30, 2013 which includes $0.2 million of cash used in operating activities of discontinued operations. As of June 30, 2014, Spire had $1.0 million of unrestricted cash and cash equivalents and $0.7 million in restricted cash.

These results include the completion of a transaction previously reported in which substantially all of the assets and assumption of certain liabilities related to Spire's biomedical business were acquired by N2 Biomedical, LLC. As this transaction is being identified as giving rise to a variable interest entity and Spire is determined to be the primary beneficiary, the assets, liabilities and results of operations of N2 Biomedical, LLC are consolidated into the Company's financial statements. In addition, the 2013 transaction gave rise to a deemed dividend in the amount of $9.5 million which is not reported as a gain for financial reporting purposes and is eliminated in consolidation.

Rodger W. LaFavre, President and CEO, stated, "We continue to see an increase in demand and related growth in the global PV market in 2014. We have experienced an increase in sales for equipment components and turnkey module lines in some of our key markets and are pleased with the increase we have seen in revenue this quarter and on a year to date basis compared to our results in the previous year. Sales in our solar business unit increased 32% during the first six months of 2014 compared to the prior year. Our optoelectonics group continues to contribute to our revenue and gross margin as it builds its services support effort and we are optimistic for the future. Under current conditions we do not see the cash benefit of our turnkey lines until shipment, which is approximately four to five months from the receipt of the order. On that basis, our current reporting does not show the true benefit of our contracted line backlog."

Mr. LaFavre continued, "The continued upward trend as forecasted by the market analysts remains encouraging as it relates to the PV equipment market. We believe we are in a position to take advantage of this growth and anticipate working through our short-term working capital needs and as such, we maintain our focus on making sound financial decisions."

ENF Profiles For Companies Mentioned in This Article

Spire Solar (Production Equipment): http://www.enfsolar.com/directory/equipment/2590
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