Mar. 29, 2013 - Spire Corporation ("Spire") announced today revenues from continuing operations for the year ended December 31, 2012 of $22.1 million, a 64% decrease from $58.7 million in 2011. Net loss for the year ended December 31, 2012 was $1.9 million, or $0.22 per diluted share, compared to a net loss of $1.5 million, or $0.18 per diluted share, for the same period of 2011. These results include a gain on the sale of its Semiconductor business unit of $3.5 million, net of a tax provision of $1.9 million or $0.34 per diluted share in 2012. Fiscal year 2011 net operating results reflect a gain on a settlement with a contract manufacturer of $1.4 million, net of a tax provision of $0.9 million, or $0.16 per diluted share in 2011. In addition, the Company recorded a gain of $0.4 million on a termination of a contract in 2011.
Spire's revenues from continuing operations for the fourth-quarter ended December 31, 2012 were $3.8 million, a decrease of 81% from $18.7 million in the fourth-quarter of 2011. The decrease was primarily due to non-recurring solar systems revenue of $8.3 million coupled with continued softness in manufacturing expansion resulting in reduced solar equipment revenues of $7.6 million. Net income for the quarter was $1.1 million, or $0.13 per diluted share, compared to net income of $1.6 million, or $0.19 per diluted share, for the fourth-quarter of 2011. Spire recorded a net loss from continuing operations of $1.2 million in the fourth-quarter of 2012, compared to a net income from continuing operations of $0.2 million in the fourth-quarter of 2011, as adjusted for discontinued operations of the Semiconductor business unit.
Gross margin from continuing operations for fiscal year 2012 was $5.3 million, or 24% of revenue, compared to $14.0 million, or 24% of revenue for fiscal year 2011.
Net cash used in operating activities of continuing operations was $6.1 million for the year ended 2012, as compared to net cash used in operating activities of continuing operations of $1.9 million for the same period last year. At year-end 2012, Spire had cash and cash equivalents of $3.0 million, as compared to $4.8 million at December 31, 2011.
Roger G. Little, Chairman and CEO, stated, "Although we are seeing growth in PV systems on a global basis, the continued oversupply of PV modules as it relates to market demand has resulted in a reduced demand for PV manufacturing equipment which is expected to continue until the module supply/demand imbalance is resolved. There is virtually no expansion of current module manufacturers. In addition, many module manufacturers have gone out of business resulting in a flood of used equipment on the market. The Company has developed and implemented 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, "Based on current industry forecasts, the Company expects the PV equipment market to exhibit a recovery and expansion cycle beginning in late 2013 or the first half of 2014, with the expected increase in global demand extending through at least the next several years. As this resurgence evolves, the Company believes that it is well positioned to capitalize on the market trends, including equipment re-tooling, the growth of regional PV module manufacturing, and PV module supply chain transactions."