Satcon Reports 45% Increase In Sales For Second Quarter 2008

August 14, 2008 by Jeff Shepard

Satcon Technology Corp. reported that revenue for the second quarter of fiscal 2008 increased by 45% to $16.9 million, up from $11.7 million for the second quarter of fiscal 2007. For the first six months of 2008, revenue grew 59% to $31.8 million from $20.0 million in the first six months of 2007. These results were driven by continued strong sales of the company’s solar photovoltaic (PV) and fuel cell solutions, which increased by approximately 90% over the second quarter of fiscal 2007.

Net loss for the second quarter was approximately $8.0 million, compared with a net loss of $3.7 million for the second quarter of 2007. As compared to the second-quarter of 2007 net loss includes a $2.8 million non-cash charge related to the change in fair value of the company’s warrants, $0.4 million of non-cash employee stock-based compensation, $0.6 million in non-cash restructuring costs, as well as $0.6 million in costs associated with continued research and development, and increases in sales and marketing and general and administrative expenses. For the first six months of 2008, net loss was $11.4 million, compared with a net loss of $7.1 million in the same period in 2007.

Net loss attributable to common shareholders was $9.1 million, or ($0.18) per share, and $13.5 million, or ($0.27) per share, for the three- and six-month periods ending June 28, 2008, respectively. Cash and cash equivalents at June 28, 2008 were $9.8 million, compared with $11.7 million at March 29, 2008. Cash used in operations decreased approximately 16% over the March 29, 2008 period.

"The growing demand for renewable energy solutions across a variety of applications, combined with our strong presence in the distributed power markets, resulted in another quarter of solid top-line growth," said Steve Rhoades, President and Chief Executive Officer of Satcon. "Sales of our solar PV and fuel cell inverters continued to drive revenues during the quarter. Shipments of these solutions increased in the U.S. and Europe, and we made significant penetration in Asia. We continue to see promising growth opportunities for Satcon in the U.S. and overseas as countries begin to invest more resources in renewable energy as a primary power generation source."