A123 Systems Announces Fourth Quarter and Full Year 2011 Financial Results

A123 Systems announced financial results for the fourth quarter and full year ended December 31, 2011, consistent with preliminary results as announced on March 1, 2012.

"We believe our customer momentum and recent actions taken across our business will position A123 for strong revenue growth and improving profitability margins during 2012," said David Vieau, CEO of A123 Systems. "Our growing success in grid and commercial markets is expected to be a meaningful driver of our revenue growth in 2012, and it also has the potential to dramatically increase the diversification of our overall revenue base. At the same time, our pipeline of business in the transportation sector was at a record level as we began the new fiscal year, which provides us with optimism regarding A123’s long-term revenue growth opportunity."

"We believe that A123 is well positioned to make progressive improvements in margins during 2012. While we faced challenges with manufacturing yields during 2011, we are pleased to see that our Michigan plant has recently produced prismatic cells within our targeted yield range. In addition, with more than 60 production programs across our targeted vertical markets, we expect to see a significant increase in capacity utilization by mid-2012, providing additional cost benefits," Vieau added. "In addition, our strengthened balance sheet provides us with resources to continue executing our growth strategy, and we will continue to seek additional opportunities to further expand our available resources."

Total revenue for the fourth quarter of 2011 was $40.4 million, an increase of 68% from $24.0 million in the fourth quarter of 2010. Within total revenue, product revenue was $34.5 million, a 76% increase from $19.5 million in the fourth quarter of 2010, and services revenue was $5.9 million, compared to $4.5 million the fourth quarter of 2010.

For the year ended December 31, 2011, total revenue was $159.1 million, an increase of 64% compared to revenue of $97.3 million in the same period in 2010. Product revenue for the year ended 2011 was $139.1 million, compared to $73.8 million in the same period of 2010, and services revenue was $20.1 million, compared to $23.5 million in the same period of 2010.

Gross loss was ($37.5) million in the fourth quarter of 2011, compared to a gross loss of ($9.4) million in the fourth quarter of 2010. For the year ended December 31, 2011, gross loss was ($90.0) million, compared to ($17.4) million in the same period of 2010.

Net loss was ($85.0) million, or ($0.65) per common share, based on 129.9 million weighted average common shares outstanding in the fourth quarter of 2011. This compared to a net loss of ($45.7) million in the fourth quarter of 2010, or ($0.43) per common share, based on 105.0 million weighted average common shares outstanding.

For the year ended December 31, 2011, net loss was ($257.7) million, or ($2.12) per common share, based on 121.6 million weighted average common shares outstanding. This compares to a net loss of ($152.6) million, or ($1.46) per common share based on 104.4 million weighted average common shares outstanding.

Adjusted EBITDA, a non-GAAP financial measure, was a loss of ($58.6) million in the fourth quarter of 2011, compared to ($35.2) million in the fourth quarter of 2010. For the year ended December 31, 2011, Adjusted EBITDA was ($194.5) million, compared to ($119.8) million for the full year 2010.

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