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A123 SYSTEMS, INC. Message Board

  • efisher2323 efisher2323 Mar 1, 2012 5:53 PM Flag

    Early Earning Release By CEO!!

    Why is there no movement on this stock in after hours.. the ceo just announced earning for the 4th quarter early!!!

    Net loss in the fourth quarter of 2011 is expected to be approximately ($85.0) million. Anticipated net loss for the fourth quarter includes a non-cash fair value impairment charge of $11.6 million to its existing investment in Fisker Automotive, Inc. The company elected not to participate in a subsequent round of financing for Fisker. Also included in anticipated net loss are additional warranty charges of $10.6 million related to a joint campaign to repair and update packaging and electronics for one customer program, and costs associated with repairing battery packs for a separate, previously announced customer program, and $10.1 million related to greater than anticipated scrap rates in the fourth quarter. Net cash used in operating activities is expected to be ($53.6) million in the fourth quarter of 2011. Cash and cash equivalents are anticipated to be $186.9 million at the end of 2011.

    "While we dealt with a number of factors in the fourth quarter that impacted both revenue and costs, we have taken actions to address these issues," said David Vieau, CEO of A123 Systems. "Over the past three months, we have been awarded five contracts with new customers representing over 17 MW in new electric grid business, underscoring our leadership position in the grid space. With our recent strength in the grid and commercial programs, we expect these markets to approach 50% of our revenue in 2012."

    Vieau continued, "In addition, we have taken a number of actions to improve our manufacturing efficiency, including the addition of a new chief operating officer, Ed Kopkowski, who is leading our efforts to reduce costs, improve quality and better utilize assets. As a result of some of these actions, we are pleased to see early indications of manufacturing yields for prismatic cells produced in Michigan reaching our target range. With new customers such as Tata contributing to our growth, we also expect to see improvements in our capacity utilization in 2012, and we anticipate that additional cost reduction efforts will result in progressive improvements in margins during 2012. Since the end of the third quarter, we have increased our liquidity through a strategic partnership with IHI and a registered direct stock offering in January, strengthening our balance sheet and helping support the growth of our business."

    "Over the next several weeks, we expect to announce additional significant developments that we believe will further help us drive our growth and increase utilization of our facilities in 2012 and beyond, while helping drive down operating costs.

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