Satcon Technology revealed that its second quarter 2011 revenue was finalized at US$45.5 million, dropping from Q1 2011’s posted revenue of US$62 million. The company noted that its Q2 revenue did fall in line with its revised guidance, which saw it reporting Q2 revenue between US$45 and US$47 million. Satcon shipped 195MW of its PowerGate Plus, Prism and Equinox solutions, compared to 240MW shipped in Q1, while its gross margin for Q2 2011 was finalized at 8%, compared to 24% in Q1.
North America continued to serve as the company’s most profitable market, with 80% of its revenue coming from the region. Asia and Europe represented 12% and 8% of Q2 revenues, respectively. As of June 30, Satcon’s backlog of purchase orders from its customers totaled to US$55.2 million. North America, once again led the way, representing 74% of the orders to be delivered.
“The market environment in the second quarter was challenging. Despite the strength of North America, the market conditions in Europe and Asia had negative effects on our overall performance,” said Steve Rhoades, president and CEO of Satcon. “In addition, we incurred one-time charges associated with inventory, restructuring, and the strategic decision to accelerate product development. Although these measures have resulted in a higher than expected operating loss, they have effectively strengthened our ability to achieve our revenue and cost targets by the end of 2011.”
During Q3 2011, Satcon anticipates revenue to fall between US$45 and US$52 million while its gross margin percentage is expected to be in the mid-teens. “Going forward, we see a strong North American market with upside coming from Asia and Europe,” continued Rhoades. “We believe that the measures we have taken in the quarter give us the flexibility to adapt to the current market volatility, position us to achieve our guidance, and put us on a path to a sustainable business.”