Spire Corporation Reports Third Quarter 2000 Results
TUESDAY, NOVEMBER 14, 2000 4:48 PM
- BusinessWire
BEDFORD, Mass., Nov 14, 2000 (BUSINESS:SPIR), which provides products and services to solar and biomedical markets worldwide,
today reported revenues and results of operations for the three and nine month periods ended 30 September 2000.
Financial Results
Spire Corporation reported revenues of $2,826,000 for the quarter compared with $2,722,000 for the quarter ended 30 September
1999. Net loss for the quarter was $127,000 or $0.04 per share compared to a net loss of $862,000 or $0.27 per share for the same
quarter of 1999. Revenues for the nine month period ended 30 September 2000 were $10,517,000 compared to $9,221,000 for the
nine month period ended 30 September 1999. Net loss for the nine month period was $127,000 or $0.04 per share compared to a
net loss of $1,570,000 or $0.48 per share for the same nine month period of 1999.
Roger G. Little, President and CEO of Spire Corporation, said, "During this quarter, we continued to transition out of our
optoelectronics research and development contract activities. We solidified both our solar and biomedical commercial businesses and
are now investing in the future. While sales increased a modest 4% for the quarter and 15% year-to-date compared to last year, our
sales mix has changed and our cost structure has been greatly reduced. This has resulted in a significant reduction in losses
compared to a year ago."
"We have begun to ship PV products out of our Spire Solar Chicago operations, installing over $300,000 in systems this quarter. We
had anticipated booking approximately $400,000 in sales of PV manufacturing equipment purchased by our partner BP Solarex for
our Chicago factory. However, the Company has not yet recognized any revenue, as the criteria for revenue recognition has not yet
been met."
Recent Corporate Actions
On October 25, 2000, Spire made an important corporate change that bears on the futures of both businesses. Spire announced that
it formed "Spire Biomedical Inc." as a wholly-owned subsidiary and declared a dividend of one share of Spire Corporation common
stock for each outstanding share.
Roger Little said, "Separating Spire into two autonomous, market-driven entities is part of our continuing plan to focus Spire as a `pure
play' in the solar energy industry to increase stockholder value. It has been difficult for the financial markets to understand our
Company with totally-different businesses. This focus began with the sale of our optoelectronic assets at the end of last year. Now,
with its own identity, Spire Biomedical can more easily pursue its own corporate development activities, strategic partnerships, and
acquire its own capital."
The dividend will be distributed on December 22, 2000, to shareholders of record on November 22, 2000. Included in the dividend are
552,160 shares of treasury stock that the Company now holds. The stock dividend increases Spire's float to make it easier for
institutions and individual investors to purchase stock.
Spire Solar Activities
Spire Solar uses its core PV module manufacturing technology to focus on providing equipment, turnkey factories, and solar energy
businesses to customers worldwide.
Mr. Little said, "The growth of our fundamental commercial business of PV equipment is consistent with market trends. However, we
are investing in new product development, marketing, and building a stronger staff to take the Company to new levels of revenue
generation and profitability. Investments were particularly heavy in start-up costs for our Spire Solar Chicago operations."
Spire is also investing in its core technology of PV module manufacturing equipment to maintain its position as the world leader. Spire
continues to cost share on its $3 million Department of Energy equipment development contract and has begun to market new
equipment developed under that program. Among other equipment orders, Spire has recently received an order from Siemens Solar
for manufacturing equipment totaling about $1 million. Spire has also added new staff in equipment engineering and manufacturing.
Mr. Little further said, "Spire Solar Chicago was established with a guaranteed $8 million market from the City of Chicago and ComEd,
the local utility. This market opportunity has more than doubled by leveraging the state program for PV system purchases and the
announcement by ComEd that a Solar Brightfield array will be put on a local brownfield. To prepare for this growth, Spire has invested
in building up engineering, marketing, and manufacturing staff in Chicago."
"We have added key marketing staff to lead Spire's efforts to establish other "Spire Solar Chicago's" in other cities throughout the
United States by partnering with local utilities to convert environmental brownfields into Solar Brightfields. This takes advantage of new
opportunities created by electric utility deregulation and the demand for clean, reliable power."
Spire Biomedical Activities
Spire Biomedical uses its core surface and materials technologies to provide products and services for improved implantable medical
devices with a focus on orthopedics.
Mr. Little said, "Spire Biomedical has been adding to its infrastructure in the form of key staff and investing in new capital equipment to
increase its production capacity for our IonGuard(TM) orthopedic surface treatments because of a growing market. Spire Biomedical
received ISO-9001 certification, demonstrating the Company's commitment to provide its customers with the highest quality processing
services."
"In order to achieve the growth rate that we are targeting, Spire Biomedical is investing in developing a new generation of tissue
engineering surface treatments for the orthopedic market. These treatments result in bone integration of prosthetic devices and
eventually may even be able to cause new tissue to grow."
About Spire Corporation
Spire Corporation is the world's largest supplier of photovoltaic module manufacturing equipment, turnkey production lines, and solar
energy businesses with equipment in 144 customer facilities in 39 countries worldwide. Spire Biomedical is a leader in providing
surface treatments to orthopedic and other implantable medical devices to improve their performance in the body.
Certain matters discussed in this News Release may be forward-looking statements subject to risks and uncertainties that could cause
actual results to differ materially from those indicated in the forward-looking statements. Such risks and uncertainties include, but are
not limited to, the risk of dependence on government agencies and other third parties for funding contract research and services, as
well as other factors described in the Company's Form 10-KSB filed with the Securities and Exchange Commission.
Visit our web site at www.spirecorp.com.
SPIRE CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Net sales
and revenues $2,826,000 $2,722,000 $10,517,000 $ 9,221,000
Loss from
operations (546,000) (829,000) (788,000) (1,488,000)
Loss before
income taxes (426,000) (862,000) (425,000) (1,570,000)
Income tax
expense (benefit) (299,000) -- (299,000) --
Net loss $ (127,000) $ (862,000) $ (127,000) $(1,570,000)
Loss per
share of
common stock
- basic $ (0.04) $ (0.27) $ (0.04) $ (0.48)
Loss per
share of
common stock
- diluted $ (0.04) $ (0.27) $ (0.04) $ (0.48)
Weighted average
number of common
and common
equivalent
shares
outstanding
- basic 3,318,317 3,245,016 3,307,743 3,244,266
Weighted average
number of common
and common
equivalent
shares
outstanding
- diluted 3,318,317 3,245,016 3,307,743 3,244,266
SUMMARY OF CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2000 1999
Assets
Current assets $13,082,000 $15,229,000
Net property and equipment 2,161,000 2,019,000
Other assets 118,000 115,000
Total assets $15,361,000 $17,363,000
Liabilities and Stockholders' Equity
Current liabilities $ 3,413,000 $ 5,511,000
Stockholders' equity 11,948,000 11,852,000
Total liabilities and
stockholders' equity $15,361,000 $17,363,000
CONTACT: Spire Corporation
Richard S. Gregorio
Vice President & Chief Financial Officer
781-275-6000
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