May. 10, 2013 - Spire Corporation today reported revenues from continuing operations for the first-quarter ended March 31, 2013 of $3.2 million, a 57% decrease from $7.5 million for the same quarter of 2012 primarily due to a decrease in solar equipment volume.
Net loss for the first-quarter of 2013 was $2.6 million, or $0.29 per share compared with net income of $3.4 million or $0.39 per share for the first-quarter of 2012. Net loss from continuing operations was $2.6 million for the three months ended March 31, 2013, as compared to net income of $0.4 million for the first-quarter of 2012. Net income for the first-quarter of 2012 includes net income from discontinued operations, net of taxes of $3.0 million or $0.35 per share related to the Company's Semiconductor business unit, which was sold in March 2012 and accordingly was classified as discontinued operations.
Gross margin for the first-quarter of 2013 was $0.2 million, or 7% of revenue, compared to $2.0 million, or 26% of revenue for the same period in 2012.
Net cash used in operating activities was $0.8 million for the three months ended March 31, 2013, as compared to net cash used in operating activities of $3.2 million for the three months ended March 31, 2012, which includes $1.6 million of cash used in operating activities of discontinued operations. As of March 31, 2013, Spire had $2.2 million in cash and cash equivalents.
Roger G. Little, Chairman and CEO, stated, "The solar industry continued to experience a severe slowdown in manufacturing expansion driven by sustained worldwide overcapacity. Although we are seeing evidence of some growth in PV systems on a global basis, this continued oversupply and imbalance of PV modules as it relates to market demand has resulted in a dramatic reduction in demand for PV manufacturing equipment which is expected to continue until the module supply/demand disparity is resolved. As a result, there is virtually no expansion of current module manufacturers to absorb existing equipment in inventory. In addition, we are seeing many module manufacturers going out of business, resulting in a flood of used equipment on the market. The Company has developed and continues to implement significant cost reduction efforts, and is looking at opportunities to expand revenue in other solar markets, and to identify potential strategic alternatives that could mitigate the decline in revenue as a result of global economic conditions."
Mr. Little continued, "Most recently the Company was awarded a contract to install a 228 kilowatt PV system in Connecticut; the Company believes the growth potential in this vertical market can partially offset the reduction in the solar equipment segment. Additionally, a 2 megawatt PV system installed at Berkshire School in 2012 by Spire Corporation was noted as Honorable Mention for 2013 Photovoltaic Projects of Distinction Award for PV Project of the Year by Solar Energy Industries Association and Solar Energy Power Association."