Revenue and Operating Losses Up at SatCon

December 27, 2005 by Jeff Shepard

SatCon Technology reported revenue for fiscal year 2005 was $36 million, an increase of $1.8 million over 2004. This year's revenue included the recognition of the EDO contract of $1.5 million; however, it excluded the recognition of the Rotary Uninterruptible Power Supply for the National Institute for Standards and Technology, which was shipped in third quarter, and other revenue deferrals in the fourth quarter totaling approximately $1.8 million. Operating Loss was approximately $9.5 million, an increase of $5.4 million from 2004.

"This past year we have put in place aggressive measures to manage our cash usage. As a result, our cash usage from operations in the last two quarters was reduced to approximately $1.5 million per quarter. Our plans in 2006 are to reduce our cash usage from the 2005 rates. We believe that our current cash and availability will sustain our operations through our fiscal 2007. In the past year we focused on the strategy of building shareholder value over both the near and long term," David Eisenhaure, SatCon's Chief Executive Officer said in a statement.

"That has led us to make some significant, and we believe positive, changes in management, business strategy, cost controls and near term objectives setting. We strengthened our management team with several additions. We have developed a strategic plan with both near and long-term objectives and focused our target markets on specific technologies and products involved in Alternative Energy, Hybrid-Electric Vehicles, Grid Support, High Reliability Microelectronics and Advanced Power Technology," Eisenhaure continued.

"We are aggressively managing all aspects of the Balance Sheet with division management focused on cash usage, receivables days outstanding, and inventory turns. Our cash position this week is approximately $9 million. Our cash usage for the past two quarters is in the $1.5 million range per quarter. Our plans for 2006 are to diminish our cash usage from the 2005 rates. What is important to note here is that we believe that our current cash and availability will sustain our operations through our fiscal 2007 and possibly beyond to a cash positive operation," Eisenhaure concluded.