Aspen cuts 2Q loss

ASPEN AEROGELS Inc. reduced its second-quarter loss by 49.4 percent to $1.4 million. It also reported a 7.9 percent decline in revenue to $27.7 million.
ASPEN AEROGELS Inc. reduced its second-quarter loss by 49.4 percent to $1.4 million. It also reported a 7.9 percent decline in revenue to $27.7 million.

NORTHBOROUGH – Aspen Aerogels Inc. reduced its second-quarter loss by 49.4 percent, or just over $1.3 million, to $1.4 million, or 6 cents per diluted share, from $2.7 million, or 12 cents per diluted share, in the second quarter of 2015.
However, it also said that on a non-GAAP basis, a measure of operating performance that companies use that reverses out restructuring, financing, hedging, changes in the fair value of fixed and intangible assets, deferred income tax and other tax expense and amortization of financing costs, the company had profit of $2.5 million in the first quarter, compared with profit of $1.3 million a year ago.
The energy technology company also reported a 7.9 percent decline in revenue in its earnings report released this week.
In the quarter that ended June 30, Aspen Aerogels reported $27.7 million in revenue, compared with $30.1 million in the year-ago period.
Don Young, Aspen Aerogels president, said the company achieved “solid improvement in gross profit, net loss and adjusted EBITDA” supported by output from its third production line.
“Resurgent demand in the building materials market and strong growth in the Asian and North American energy markets helped offset the declines in demand in the subsea market and reduced shipments to the South Asian petrochemical project during the quarter,” he added.
Young said the company made “great progress” in the second quarter to diversify its markets, increase capacity and expand its technology. He noted that Aspen Aerogels signed an exclusive supply agreement and a joint development agreement with BASF initially focused on the building materials market, and that it completed third-phase engineering designs for the planned Statesboro, Ga., manufacturing facility. It also financed a portion of the construction costs with the scheduled prepayments from the supply agreement with BASF.
“In addition, we commenced construction of the pilot line in our East Providence facility designed to support the creation of next generation products for both new and existing markets. We expect to complete the pilot line in the third quarter of this year,” Young said.
The company also said it continues to expect that total 2016 revenue will range between $117 million and $125 million, and the net loss will range between $6.8 million and $8.6 million. Adjusted EBITDA is expected to be lower, however, ranging from $7 million to $8.5 million from the prior guidance range of $11.5 million and $13 million. That reflects between $3.4 million and $3.9 million in costs and expenses associated with Aspen’s patent enforcement actions for the year.

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