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Technology Stocks : SatCon Technology (SATC) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Oravetz who wrote (388)	10/2/2001 1:17:38 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 440

BOSTON -- SatCon Technology Corp. (SATC) shares were down about 13% Monday, after the firm made a pro rata dividend distribution in the form of shares of stock it held in an affiliate. David Eisenhaure, SatCon's chief executive, attributed the decline to the shares going "ex-dividend," as shareholders of SatCon received a dividend of 0.3023 shares of Beacon Power Corp. (BCON), a firm in which SatCon has a stake. The value of the dividend was equal to about 50 cents for each share of SatCon, Eisenhaure said. The distribution amounted to 5 million shares of Beacon Power and was sent to shareholders of record as of Sept. 24. SatCon held a 23% stake, or 10 million shares of Beacon Power, a Wilmington, Mass., company that manufactures flywheel energy storage products. After the distribution, SatCon holds 11% of Beacon's shares. Beacon is a maker of flywheel energy storage systems, which SatCon incorporates Beacon's flywheel into some of its own devices. SatCon manufactures electrical power and alternative energy management systems and components for use in backup power systems, telecommunications, factory automation, and energy management in aircraft, satellites and automobiles. SatCon shares recently traded at $4.71, down 68 cents, on volume of 789,900, compared with average daily volume of 99,900. Earlier, shares traded as low as $4, below the previous 52-week low of $4.25, set Sept. 17. Shares of SatCon have been steadily weakening over the past three months, from a closing price of $10.64 on July 2 to Monday's 52-week low of $4. Analyst David Kurzman, of H.C. Wainwright & Co., said he doesn't think the issuance of the Beacon share dividend is the reason for the decline in SatCon's shares. He said Monday's drop is the continuation of the longer-term decline, which reflects investors shifting their focus to profitable companies in the alternative energy sector, away from those that aren't yet profitable but have promising technology. "But they're not finding much to choose from," Kurzman said. SatCon lost $1.01 a share in fiscal 2000. It has lost 80 cents a share through the first three quarters of this year. Kurzman expects SatCon to lose $1.08 a share for 2001, and said a continued economic slowdown will hurt performance next year as well. His revenue estimate for fiscal 2002 is $63.8 million, up from his estimate of $43 million for 2001, but that may need to be reduced, he said. "We are keeping our estimates unchanged for now, but investors should be cognizant that a reduced revenue ramp could further delay profitability and accelerate the cash burn," he said. Kurzman added that increased cash burn could prompt the company to tap its remaining investment in Beacon Power. Excluding its Beacon holdings, SatCon ended the June quarter with about $26 million in cash and investments, which should last it through fiscal 2003 at the current burn rate, he said. H.C. Wainwright has rated SatCon's shares at accumulate.