Spire Corporation (Nasdaq: SPIR) today reported revenues of $8,579,000 for the three months ended June 30, 2007, compared to $3,895,000 for the three months ended June 30, 2006. Net loss was $1,864,000 or $0.23 per basic share for the three months ended June 30, 2007, compared with a net loss of $2,081,000 or $0.26 per basic share for the three months ended June 30, 2006.
Revenues for the six months ended June 30, 2007 were $15,576,000, compared to $9,268,000 for the six months ended June 30, 2006. Net loss was $3,611,000 or $0.44 per basic share for the six months ended June 30, 2007, compared with net loss of $4,085,000 or $0.54 per basic share for the six months ended June 30, 2006.
Roger G. Little, Chairman and CEO of Spire, said, "Our revenues more than doubled due to the growth of our solar equipment and turnkey factory products. To be responsive to this unprecedented demand, we are rapidly expanding our staff and manufacturing capacity. Since January 2007, we have expanded our workforce by over 83% and our manufacturing space by 50,000 sq. ft. to accommodate our growth. Our gross margins have improved, however not to the level we anticipated with the respective growth in volume due to some inefficiencies that were inevitable in a time of such rapid growth."
"Our Spire Biomedical and Bandwidth Semiconductor operations continued to make progress towards profitability. Biomedical had revenue growth in both services and products. We are beginning to see market acceptance of our coated heparin hemodialysis catheter. Bandwidth Semiconductor increased its revenues while completing the installation of the two new commercial reactors. These reactors are being used to increase manufacturing capacity for solar cells, light emitting diodes, RGB lasers and related components."
Mr. Little concluded, "Anticipating the need for more working capital to meet the demand for our products, we obtained a $3.5 million, three-year term loan from Silicon Valley Bank. Spire ended the quarter with approximately $7.5 million in cash."
About Spire Corporation
Spire Corporation provides products and services to the solar energy, biomedical and optoelectronics industries worldwide operating with three entities: Spire Solar, Spire Biomedical and Bandwidth Semiconductor. For more information visit www.spirecorp.com.
SPIRE CORPORATION AND SUBSIDIARIES | ||||||||||||||||
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
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| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| Â | 2007 | Â | Â | 2006 | Â | Â | 2007 | Â | Â | 2006 | Â | |||||
Net sales and revenues | $ | 8,579,000 | Â | $ | 3,895,000 | Â | $ | 15,576,000 | Â | $ | 9,268,000 | Â | ||||
Loss from operations | (1,845,000 | ) | (2,117,000 | ) | (3,600,000 | ) | (4,094,000 | ) | ||||||||
Other income (expense), net | Â | (19,000 | ) | Â | 36,000 | Â | Â | (11,000 | ) | Â | 9,000 | Â | ||||
Loss before income tax benefit | Â | (1,864,000 | ) | Â | (2,081,000 | ) | Â | (3,611,000 | ) | Â | (4,085,000 | ) | ||||
Net loss | $ | (1,864,000 | ) | $ | (2,081,000 | ) | $ | (3,611,000 | ) | $ | (4,085,000 | ) | ||||
Loss per share of common stock - basic and diluted  |  $ | (0.23 |  ) |  $ | (0.26 |  ) |  $ | (0.44 |  ) |  $ | (0.54 |  ) | ||||
Weighted average number of common and common equivalent shares outstanding - basic and diluted  |  | 8,263,571 |  |  | 7,905,479 |  |  | 8,255,178 |  |  | 7,572,598 |  | ||||
SUMMARY OF CONDENSED CONSOLIDATED BALANCE SHEET | |||
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| June 30, 2007 | |||
Assets | |||
| Current assets | $ | 24,662,000 | |
| Net property and equipment | 6,216,000 | ||
| Other assets | Â | 2,817,000 | |
| Total assets | $ | 33,695,000 | |
Liabilities and stockholders' equity | |||
| Current liabilities | $ | 21,476,000 | |
Total long-term liabilities | 6,006,000 | ||
Stockholders' equity | Â | 6,213,000 | |
| Total liabilities and stockholders' equity | $ | 33,695,000 | |
Certain matters described 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 market growth, competition and 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 and other periodic reports filed with the Securities and Exchange Commission.
