SatCon Technology Corporation© (NASDAQ CM: SATC) has announced its operating results for the quarter ended June 30, 2007.
“This has been a strong revenue growth quarter for SatCon,” said David Eisenhaure, President and Chief Executive Officer. “As we have been predicting for some time, the Photovoltaic Inverter market opportunity is experiencing rapid growth and we have been positioned well to take advantage of the technical strength of our products.”
For the quarter our:
o Revenues increased 31% over last year to $11.7 million.
o Photovoltaic Inverters represented $3.8 million or over 30% of that total, a 70% increase over last year – highlighting our growth in this major market segment.
o Year to date our photovoltaic inverter revenues have more than doubled over last year to $7 million dollars.
In addition to our revenue increases:
o Our backlog grew to a record $48 million at the end of the quarter, an 80% increase over last year.
o We have continued to deliver a positive sales order booking to revenue ratio for the last 9 quarters.
o As a result, we continue to project that we will have revenues of $50 million for the year with an expectation of over $30 million of revenue in the second half of 2007. This compares to our 2006 annual revenue of $34 million, an increase of over 47%.
We also stated that we would need to find additional working capital to fund our growth. To that end, this July we:
o Executed a warrant conversion that raised $4.7 million, which improved our cash position and will allow us to fund the manufacture of photovoltaic inverters and other products that will bolster our increasing revenues.
o As we go forward we will continue to evaluate our capital needs to meet our revenue targets, but for the remainder of the year our current cash on hand and that generated from revenues should be sufficient to support our $50 million revenue projection for 2007. As we stated last quarter, we will need to raise additional funds to properly support our continued revenue growth.
In addition, we said that with the increased revenue of $50 million for the year that our losses from operations would decline.
o Had we not incurred unanticipated losses from a couple of 5-year-old legacy products in the Power Systems group, our losses in fact would have dropped over last year.
o As we look forward to the second half of 2007, we anticipate that the trend in the reduction of our operating losses will continue.
Revenues for the quarter ended June 30, 2007 were $11.7 million compared with $8.1 million in the second quarter of 2006, an increase of 31%. Revenues for the first six months totaled $20.1 million, a 27% increase over the $15.7 million in 2006.
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