SATC SatCon Technology Reports Financial Results for the Third Quarter Ended September 29, 2007

SatCon Technology Reports Financial Results for the Third Quarter Ended September 29, 2007Business Wire "US Press Releases "
BOSTON--(BUSINESS WIRE)--
SatCon Technology Corporation(C) (NASDAQ CM: SATC), a developer and supplier of power management and system architecture solutions for the alternative energy and distributed power markets, today announced its operating results for the quarter ended September 29, 2007.
"This has been another strong revenue growth quarter for SatCon," said David Eisenhaure, President and Chief Executive Officer. "As reported last quarter, the Photovoltaic Inverter market opportunity continues to experience rapid growth and we continue to be well positioned due to the technical strength of our products." Highlights:
-- Revenues increased 147% over last year to $21.0 million.
-- Photovoltaic Inverters represented $6.1 million or 29% of that
total, a 177% increase over last year.
-- Year-to-date, photovoltaic inverter revenues have more than
doubled over last year to $13.1 million dollars.
-- Losses from Operations declined to $1.2 million from $3.5
million in 2006
In addition to revenue increases:
-- Sales Order backlog was approximately $47 million at the end
of the quarter, a 78% increase over last year.
-- The sales order booking to revenue ratio has remained positive
for 9 of the past 10 quarters.
-- As a result, we expect to achieve annual revenues for 2007 on
the order of $55 million compared to 2006 annual revenues of
$34 million, an increase of over 60%.
-- We continue to expect our annual losses from operations to
decline accordingly as compared to 2006. We anticipate our 4th
quarter losses to be impacted by continued pressures from the
weakened US dollar vs. Canadian dollar and continued R&D on
new products under development and start up costs as we
prepare to introduce our next generation line of inverters.
Revenues for the quarter ended September 29, 2007 were $21.0 million compared with $8.5 million in the third quarter of 2006, an increase of 147%. Revenues for the first nine months totaled $41.0 million, a 69% increase over the $24.2 million in 2006.
Revenues within the Power Systems Division in Canada increased by over 250% to $14.7 million for the quarter compared to $4.1 million in the third quarter of 2006. For the first 9 months of 2007, Revenue in Power Systems Canada was $23.5 million a 142% increase over the $9.7 million in 2006. In addition, the Applied Technology Division revenue recorded a third quarter growth of over 115% to $2.8 million from $1.3 million and over 80% to $6.3 million for nine months in 2007 from $3.5 million in 2006. Revenues in the Motors and Hybrid Electric Vehicle business for the nine months were up 42% to $2.7 million compared to $1.9 million in 2006. This overall revenue growth reflects the results of the company's effort to focus on products targeted at the alternative energy and distributed power markets.
Operating Losses for the third Quarter of 2007 were $1.1 million, as compared to $3.5 million in the third quarter 2006. The losses for the first nine months of 2007 were $7.7 million as compared to $10.2 million for the same period of 2006. In addition, we experienced increased labor costs as well as increased materials costs due to the availability of materials from our supplier base to meet increased demand for photovoltaic inverters and the continued weakening of the US dollar vs. the Canadian dollar during the past two quarters. The company continued to increase direct investment spending in R&D with an increase of $0.6M to $2.2M for the first nine months of 2007, primarily to support the development of new photovoltaic products. These cost increases were partially offset by reduced SG&A expenses for the first nine months of 2007 of $0.7 million, or 7%, primarily due to a decrease in corporate costs related to legal and other fees, reduced payroll and other overhead costs.
About SatCon Technology Corporation
SatCon Technology Corporation is a developer and manufacturer of electronics and motors for the Alternative Energy, Hybrid-Electric Vehicle, Grid Support, High Reliability Electronics and Advanced Power Technology markets. For further information, please visit the SatCon website at www.satcon.com. SATC-E
Statements made in this document that are not historical facts or which apply prospectively are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "will," "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the Company's expectation. There can be no assurance that the company will continue to maintain this level of new orders or that it can successfully deliver the components and systems ordered. Additional information concerning risk factors is contained from time to time in the Company's SEC filings. The Company expressly disclaims any obligation to update the information contained in this release. SATCON TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
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September 29, September 30,
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2007 2006
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Revenue:
Product revenue $18,266,367 $7,232,110
Funded research and development and other
revenue 2,724,819 1,259,301
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Total revenue $20,991,186 $8,491,411
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Operating costs and expenses:
Cost of product revenue 16,148,865 7,263,847
Research and development and other revenue
expenses:
Funded research and development and
other revenue expenses 1,989,552 1,123,566
Unfunded research and development
expenses 847,743 522,073
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Total research and development and other
revenue expenses $2,837,295 $1,645,639
Selling, general and administrative
expenses 3,058,335 2,898,676
Amortization of intangibles 78,573 97,794
Gain on sale of assets held for sale -- (209,054)
Restructuring costs -- 262,000
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Total operating costs and expenses $22,123,068 $11,958,902
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