SATCON TECHNOLOGY CORPORATION ANNOUNCES FIRST QUARTER RESULTS
SATCON TECHNOLOGY POSTS 108% INCREASE IN REVENUE TO $9.5 MILLION
FOR FISCAL 2001 FIRST QUARTER
Cambridge, MA - February 7, 2001 - SatCon Technology Corporation® (Nasdaq:SATC), a leader in power and energy management products, today announced financial results for its fiscal 2001 first quarter ended December 31, 2000.
Revenue for the first quarter rose 108% to $9.5 million compared with $4.6 million in the same period last year. Net loss for the quarter ended December 31, 2000, excluding an unrealized loss on $2.9 million on an investment, was $2.8 million, equal to $.20 per share, compared with $3.1 million, or $.29 per share, in the fiscal 2000 first quarter. During the quarter, SatCon adopted Statement of Financial Accounting Standards No. 133 that requires the carrying value of the warrants we hold to purchase 300,000 shares of Mechanical Technology Incorporated common stock to be adjusted to market value. As a result, SatCon recorded an unrealized loss of $2.9 million, or $.21 per diluted share, on this investment . Including this charge, net loss for the fiscal first quarter was $5.6 million, or $.41 per share. The net operating loss for fiscal 2001 first quarter improved to $2.3 million from $2.4 million in the first quarter of fiscal 2000.
First quarter revenue for the Electronics Products segment increased 44% to $2.6 million over the prior year's period. The Motion Control Products segment revenue rose 257% to $4.8 million. Within this segment, revenue from Ling Electronics increased 215% to $2.5 million, while MagMotor revenue increased 196% to $2.3 million. As Ling Electronics was acquired on October 21, 1999, revenue for the first 21 days of October 1999 was not included in SatCon's results for the quarter ended December 31, 1999. Revenue from the Technology Center, the Funded Research and Development segment, was up 48% to $2.1 million.
For the three months ended December 31, 2000, the breakdown of revenue by operating segment is as follows:
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"We are pleased to kick off the 2001 fiscal year with growth in each of our business segments and first quarter revenue that doubled over the first quarter last year," said David Eisenhaure, president and chief executive officer of SatCon. "In the Electronics Products segment, revenue growth was primarily driven by sales in the RF (radio frequency) product lines, including satellite uplink amplifiers, communications uplinks and power resistors for cellular telephones, all of which serve markets that continue to appear healthy. In our Motion Control Products segment, increased sales at both MagMotor and Ling Electronics contributed to record-level revenue growth. At MagMotor, results were driven by sales of our MagLev™ systems to Applied Materials and by increased sales of our industrial automation motors. Because of the demand for our technology and products, we are planning to lease a new 60,000 square foot facility in Worcester, Massachusetts to replace our current 17,000 square foot facility."
Eisenhaure continued, "Revenue growth at the Technology Center reflects our continuing work on the Department of Energy's AIPM (Automotive Integrated Power Module) program to develop low cost power conversion modules for electric and hybrid-electric automobiles; a contract from General Dynamics Land Systems to build a high-power density power conversion module for a military vehicle; and a contract to develop components for the new Navy Electro-Magnetic Aircraft Launch System. In the first quarter, SatCon was awarded several new contracts, including one to develop the use of silicon carbide based power semiconductors, which will further advance the technology of high-power electronics such as those used in SatCon's PowerGate™ power conversion systems, and two contracts worth $2.9 million to develop power conversion modules and electronics for the next generation "all-electric" ship for the U.S. Navy.
"In the first quarter, we focused our resources on a marketing program to support the launch of our new uninterruptible power supply, or UPS, product line that we introduced at the Los Angeles Power Association Winter Conference on January 31, 2001," Eisenhaure said. "Designed to provide up to 2.0 megawatts of power during power outages, the system is also designed to protect against voltage surges and sags. In the StarSine MegaPower™ UPS, SatCon will combine Ling Electronics' StarSine power converters and controls with commercially available battery banks or flywheels to produce an integrated system that provides uninterruptible power during brownouts or blackouts, such as those recently experienced by consumers and businesses in California. Currently, customers are enduring long delays in the delivery of these systems, which typically sell for more than $1 million. SatCon anticipates selling UPS products into this marketplace based on market demand. With tightening product availability and power quality problems spreading nationwide, we believe SatCon is well positioned to benefit from the growing demand for UPS products.
Eisenhaure said the UPS product line enhances SatCon's product offerings for the alternative power and energy management sector that now includes its PowerGate™ power conversion systems and the GridLink™ utility interface for distributed power generation that work with fuel cells, microturbines, wind turbines and solar arrays, motors, controllers and drivetrains for alternative fuel vehicles and, through SatCon's affiliate, Beacon Power Corporation, flywheel energy storage devices. The StarSine MegaPower™ UPS family, based on Ling Electronics' StarSine line of high-quality power output electronics, is modular, allowing for a number of UPS power levels that can accommodate a variety of businesses from hotels and hospitals to offices and manufacturing facilities. The UPS products will be manufactured at Ling Electronics and sold, distributed and serviced by Ling Electronics' worldwide sales and service network.
Also during the quarter, Beacon Power (Nasdaq:BCON) completed its initial public offering, raising an aggregate of approximately $51,300,000. As of December 31, 2000 we increased the carrying value of our investment in Beacon Power by $10.2 million. This reflects the increase in our beneficial share of Beacon Power's book equity after the completion of Beacon public offering, reduced by the $5.8 million of previously recorded losses of Beacon Power and the $549,000 equity loss recorded in the quarter. We currently own approximately 9,705,000 shares or 22.7% of Beacon Power's outstanding common stock. Beacon Power recently announced that it has installed two model 20C1000 flywheel energy storage systems to provide standby power for one of San Diego Gas and Electric's (SDG&E) telecommunications customers, Cox Communications. SatCon's Fuel Cell Power Products Division also received an order for an additional 65 UPS power electronics systems from Beacon Power. These new systems are being designed to be field serviceable, to meet UL certification, and reflect reduced size and cost. |
