Nov. 19, 2013 - Spire Corporation today reported revenues from continuing operations for the third-quarter ended September 30, 2013 of $4.2 million, as well as $4.2 million for the same quarter of 2012.
During the third quarter, the Company completed a transaction in which substantially all of the assets and assumption of certain liabilities related to Spire's biomedical business were acquired by N2 Biomedical LLC. As this transaction is being identified as giving rise to a variable interest entity and Spire is determined to be the primary beneficiary, the assets, liabilities and results of operations of N2 Biomedical LLC are consolidated into the Company's financial statements.
Net loss for the third-quarter of 2013 was $2.2 million, or $0.22 per diluted share, compared with a net loss of $2.3 million, or $0.27 per diluted share, for the third-quarter of 2012. Loss from continuing operations was $2.2 million for the three months ended September 30, 2013, as compared to net loss from continuing operations of $2.0 million for the same period in 2012.
Gross margin for the third-quarter of 2013 was $1.2 million, or 29% of revenue, compared to $1.0 million, or 23% of revenue, for the same period in 2012, representing an increase in gross margin percentage of 25% for the three months ended September 30, 2013, primarily due to increased margins realized in the equipment and EPC market segments.
Net cash used in operating activities was $3.7 million for the nine months ended September 30, 2013, which includes $0.2 million of cash used in operating activities of discontinued operations, as compared to net cash used in operating activities of $6.3 million for the nine months ended September 30, 2012 which includes $1.7 million of cash used in operating activities of discontinued operations. As of September 30, 2013, Spire had $5.9 million of unrestricted cash and cash equivalents.
Roger G. Little, Chairman and CEO, says, "With the divestiture of the Biomedical business unit, the Company was able to monetize its value on a standalone basis resulting in a cash infusion while still owning a portion of its equity. We can now concentrate resources on other opportunities."
"While the global market for PV systems continues to expand, we continue to experience low demand for module manufacturing equipment as a result of overcapacity in the industry. Many analysts believe that in 2014 this overcapacity will be absorbed and new capacity will be brought on line ending more than a two year drought."
Mr. Little concluded, "We have made substantial cost reductions during this period. We believe we are well positioned to capitalize on these market trends which include equipment re-tooling, the growth or regional PV module manufacturing, and PV module supply chain transactions."