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Should further confirmation be needed in relation to the collapse in the PV equipment market, then Spire Corporation’s second-quarter financial results should suffice. The company posted revenue of US$6.6 million, down 52% from US$13.9 million for the same quarter of 2011. The company posted a net loss of US$1.8 million, compared with a net income of US$0.7 million for the same period a year ago.
"The quarterly revenue and operating loss is in line with our expectations as a result of the collapse of the PV equipment market driven by worldwide overcapacity of module manufacturing,” noted Roger G. Little, chairman and CEO, Spire Corporation. “We anticipated the market collapse and have taken significant cost reduction measures."
The decline in quarterly revenue was said by management to be primarily due to a decrease of US$7.3 million on individual module equipment units delivered during the second-quarter.
Spire reported a gross margin of 19% on US$1.2 million of revenue, compared to US$5.3 million, or 38% of revenue for the same period in 2011. Net cash from operating activities was US$0.4 million for the six months of 2012, which included US$3.7 million of cash provided by operating activities of discontinued operations.
The decline in quarterly revenue was said by management to be primarily due to a decrease of US$7.3 million on individual module equipment units delivered during the second-quarter.
"Based on recent industry marketing forecasts, we expect the PV equipment market to begin to recover in late 2013 then potentially increasing in global demand extending through at least 2016,” added Little in a statement.
“During this quarter, we successfully introduced and delivered our first ‘Spi-Sun Simulator’ 5600SLP and anticipate sales of this new system to increase as module manufacturers replace older equipment, address measurement needs of high efficiency module technology and expand production," concluded Little.
