NORTHBOROUGH, Mass. – Aspen Aerogels on Thursday reported a $6.8 million loss in the third quarter, or 25 cents per diluted share.
The company, which designs, develops and manufactures aerogel insulation and has a manufacturing facility in East Providence, logged a loss of $2.3 million in the third quarter of 2019, or 9 cents per diluted share.
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The increase in losses was attributed to the effects of the COVID-19 pandemic on the company’s energy-infrastructure business.
“As expected, our third quarter revenue declined 32% due to the impact of COVID-19 on our energy-infrastructure business, most notably in the North American petrochemical and refinery market,” said Don Young, president and CEO of Aspen. “Despite our initiatives to reduce compensation, discretionary expenses and bill of material costs, we experienced a decrease in gross profit and Adjusted EBITDA and an increase in net loss versus the third quarter of 2019.”
Company revenue totaled $24.2 million, a decline from $35.4 million one year prior. Product revenue declined 31.7% year over year, to $23.9 million. Service revenue totaled $256,000, a decline from $379,000 one year prior.
“Looking forward to 2021, we are projecting that the COVID-19 pandemic will continue to constrain demand for Aspen’s products in the energy-infrastructure markets,” continued Mr. Young. “In this light, we expect our revenue and profitability profile in 2021 will remain roughly in line with our 2020 full-year outlook. However, we anticipate that demand will rebound when the pandemic subsides and contractor access restrictions in energy infrastructure facilities are removed.”
The company also noted that in the quarter, it entered into a contract with a major United States automotive original-equipment manufacturer to supply thermal barriers for use in its battery platform, with production expected to begin in 2021. Details of the contract were not provided.
