August 13, 2013 - Spire Corporation today reported revenues from continuing operations for the second-quarter ended June 30, 2013 of $3.6 million, a 46% decrease from $6.6 million for the same quarter of 2012. This decline is primarily due to a decrease of $2.8 million in individual module equipment units delivered during the second-quarter of fiscal year 2013 as overcapacity in the global market continues to adversely affect the entire PV industry.
Net loss for the second-quarter of 2013 was $1.8 million, or $0.19 per diluted share, compared with a net loss of $1.8 million, or $0.21 per diluted share, for the second-quarter of 2012. Loss from continuing operations was $1.8 million for the three months ended June 30, 2013, as compared to net loss from continuing operations of $1.8 million for the same period in 2012.
Gross margin for the second-quarter of 2013 was $0.5 million, or 14% of revenue, compared to $1.2 million, or 18% of revenue, for the same period in 2012, representing a reduction in gross margin percentage of 22% for the three months ended June 30, 2013, primarily due to the decline in sales, lower indirect costs offset by the amount of overhead absorbed due to the reduction in sales volume.
Net cash used in operating activities was $1.9 million for the six months ended June 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 $4.3 million for the six months ended June 30, 2012 which includes $1.7 million of cash used in operating activities of discontinued operations. As of June 30, 2013, Spire had $1.7 million of unrestricted cash and cash equivalents.
Roger G. Little, Chairman and CEO, says, "The global market for PV systems continues to expand driven in part by low cost modules that have resulted from overcapacity in the industry. With the demise of many manufacturers and the growth of the market, we expect this overcapacity of module manufacturing to be absorbed by mid-2014. Once absorbed, we expect module prices to rise. Higher prices will improve the financial performance of the surviving manufacturers, as well as the rest of the value chain, and stimulate capacity expansion likely in late 2014. We have made substantial cost reductions and have put effort into our EPC business to sustain our solar equipment operations until module manufacturing expansion recovers. We recently completed the installation of 228 kilowatts of systems, for example. From late 2014 on, we expect the growth of the industry to continue but on a much healthier financial footing."