SatCon Reports Second-Quarter 2001 Results

May 01, 2001 by Jeff Shepard

SatCon Technology Corp. (Cambridge, MA) announced financial results for its fiscal 2001 second quarter and six-month period ended March 31, 2001. Revenue for the second quarter rose 53 percent to $11.5 million, compared with $7.5 million in the same period last year. Revenue for the six months ended March 31, 2001, increased 74 percent to $21.0 million, compared with $12.1 million for the first six months ended March 31, 2000.

For the quarter, the electronics products segment's revenue increased 97 percent, to $3.3 million. The motion control products segment's revenue rose 33 percent, to $5.2 million. SatCon's research and development segment's revenue increased 55 percent, to $3.0 million.

Excluding the write-off of $1.3 million of public offerings costs, the pro-forma operating loss for the second quarter was $2.5 million, or $0.18 per share, as compared to an operating loss of $2.0 million, or $0.16 per share, in the second quarter of 2000. Net loss for the second quarter was $6.4 million, or $0.46 per share. Net loss for the first six months of fiscal 2001 was $10.4 million, or $0.75 per share.

The company had $7.2 million of cash on hand at March 31, 2001, as compared to $8.8 million at September 30, 2000. For the first six months of 2001, operating activities used $1.9 million, capital expenditures used $1.0 million and $1.2 million was raised from capital lease financing.

For the second quarter, gross margin as a percentage of product revenue improved to $1.7 million, or 20.4 percent, compared with $0.8 million, or 13.5 percent, in the comparable quarter of last year. Gross margin on research and development revenue of approximately 25 percent was also improved significantly compared with approximately 16 percent in the prior-year quarter.

“Our strong revenue results for the second quarter further underscore the growing demand for our enabling products for the power- and energy-management marketplace," said David Eisenhaure, president and CEO of SatCon. “Each of our operating segments produced robust revenue increases, reflecting sales growth throughout our product lines. Revenue from power quality products, electronics, RF semiconductor products, magnetic levitated motor systems and engineering contracts all increased."

Eisenhaure added, “As we look to the future, we will continue our strategy to drive toward revenue growth and profitability through the introduction of enabling and proprietary products, increasing sales and marketing, growing our capabilities through acquisitions and adding unique production capabilities, and using government and outside funds to leverage our product investments."