SatCon Reports FY Second-Quarter 2005 Results

May 16, 2005 by Jeff Shepard

SatCon Technology Corp. (Cambridge, MA), a developer of power control electronics, reported financial results for its fiscal 2005 second quarter, which ended April 2, 2005. Revenue for the quarter was $8.3 million dollars compared to $8.2 million in 2004. The $8.3 million does not reflect an expected $1.5 million of revenue recognition from the completion of the EDO program.

Operating loss for the second quarter was $2.1 million, a $1.0 million dollar increase over 2004. That loss included about $0.4 million of settlements and severance costs and some higher costs of manufacturing as the company ramps up its infrastructure in the Power Systems Division for planned increased production.

The first six months of fiscal 2005 showed revenue growing by 7% from $16.3 million to $17.5 million, primarily in the company's Power Systems Division. The operating loss for the first six months of fiscal 2005 was $3.3 million, which was an increase over 2004's operating loss of $1.8 million, primarily due to settlement, severance and manufacturing costs.