UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended January 1, 2005
Commission File Number 1-11512
SATCON TECHNOLOGY CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware |
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04-2857552 |
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(State or other
jurisdiction of |
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(IRS Employer Identification No.) |
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27
Drydock Avenue |
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02210 |
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(Address of principal executive offices) |
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(Zip Code) |
(617) 897-2400
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Common Stock, $0.01 Par Value,
33,255,527 shares outstanding as of February 14, 2005.
TABLE OF CONTENTS
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January 1, |
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September 30, |
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(Unaudited) |
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(Audited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
7,067,496 |
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$ |
1,171,152 |
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Restricted cash and cash equivalents |
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1,011,900 |
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1,011,900 |
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Accounts receivable, net of allowance of $821,744 and $848,565 at January 1, 2005 and September 30, 2004, respectively |
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5,033,309 |
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6,274,178 |
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Unbilled contract costs and fees |
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486,469 |
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447,405 |
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Funded research and development expenses in excess of billings |
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399,575 |
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292,111 |
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Inventory |
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6,393,376 |
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6,184,672 |
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Prepaid expenses and other current assets |
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1,049,108 |
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687,083 |
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Total current assets |
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21,441,233 |
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16,068,501 |
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Warrants to purchase common stock |
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28,975 |
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7,036 |
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Property and equipment, net |
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5,687,826 |
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5,913,211 |
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Goodwill, net |
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704,362 |
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704,362 |
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Intangibles, net |
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2,260,028 |
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2,391,193 |
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Other long-term assets |
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536,704 |
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501,634 |
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Total assets |
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$ |
30,659,128 |
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$ |
25,585,937 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Current portion of long-term debt |
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$ |
154,936 |
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$ |
184,177 |
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Accounts payable |
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3,980,652 |
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3,823,249 |
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Accrued payroll and payroll related expenses |
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1,509,717 |
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1,449,349 |
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Other accrued expenses |
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2,478,445 |
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2,412,409 |
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Accrued contract losses |
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247,444 |
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514,489 |
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Deferred revenue |
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1,027,400 |
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2,048,442 |
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Accrued restructuring costs |
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240,000 |
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495,612 |
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Total current liabilities |
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9,638,594 |
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10,927,727 |
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Redeemable convertible Series B preferred stock (425 shares issued and outstanding; face value: $5,000 per share; liquidation preference: 100%) |
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2,125,000 |
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2,125,000 |
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Long-term debt, net of current portion |
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294,342 |
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311,178 |
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Other long-term liabilities |
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516,070 |
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563,372 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Common stock; $0.01 par value, 50,000,000 shares authorized; 33,182,694 and 28,226,010 shares issued and outstanding at January 1, 2005 and September 30, 2004, respectively |
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331,828 |
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282,261 |
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Additional paid-in capital |
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146,972,424 |
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139,208,000 |
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Accumulated deficit |
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(129,092,433 |
) |
(127,659,993 |
) |
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Accumulated other comprehensive loss |
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(126,697 |
) |
(171,608 |
) |
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Total stockholders’ equity |
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18,085,122 |
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11,658,660 |
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Total liabilities and stockholders’ equity |
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$ |
30,659,128 |
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$ |
25,585,937 |
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The accompanying notes are an integral part of these consolidated financial statements.
2
(Unaudited)
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Three Months Ended |
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January 1, |
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December 27, |
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Revenue: |
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Product revenue |
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$ |
8,270,224 |
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$ |
6,208,546 |
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Funded research and development and other revenue |
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912,865 |
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1,978,602 |
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Total revenue |
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9,183,089 |
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8,187,148 |
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Operating costs and expenses: |
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Cost of product revenue |
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7,221,362 |
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5,198,152 |
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Research and development and other revenue expenses: |
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