Aspen Aerogels posts $29.6M loss in Q3

ASPEN AEROGELS Inc. posted a loss of $29.6 million in the third quarter, or 75 cents per diluted share, compared with a $7.8 million loss one year prior, or 24 cents per diluted share.

NORTHBOROUGH, Mass. – Aspen Aerogels Inc. Wednesday reported a loss of $29.6 million in the third quarter of 2022, or 75 cents per diluted share, compared with a $7.8 million loss one year prior, or 24 cents per diluted share.

The loss was higher than Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for a loss of 54 cents per share.

The company, which designs, develops and manufactures aerogel insulation and has a manufacturing facility in East Providence, said revenue for the quarter totaled $36.7 million, an increase from $30.3 million one year prior.

Five analysts surveyed by Zacks expected $50.1 million.

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The company said its PyroThin thermal barrier business generated a record $12 million in revenue in the quarter.

At the same time, however, Aspen’s total operating expenses were $22 million for the third quarter, up from $14.6 million in the same period a year ago. The company posted increased expenses for research and development ($4.7 million, up $1.6 million from a year ago), sales and marketing ($7.3 million, up $2.4 million from a year ago) and general and administrative costs ($10 million, up $3.4 million from a year ago).

“We believe both our [electric vehicle] and energy industrial businesses continue to provide a favorable backdrop for us to reach our 2023 revenue target of $240 million and our 2025 revenue target of $720 million,” said Don Young, CEO and president of Aspen. “Our strategy to finance our growth plan has continued to focus on strategic investors who know our company and the markets we serve. We believe that a strategic investor as the centerpiece of a financing will add validation to our business strategy and strengthen our balance sheet.”

Aspen Aerogels shares have decreased 78% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $10.96, a drop of 77% in the last 12 months.

(Material from the Associated Press was used in this report)

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