MIDDLEBOROUGH – Aspen Aerogels Inc. lost $5.3 million in the second quarter of 2019, or 22 cents per diluted share, despite showing a 36.3% increase in revenue year over year to $29.5 million. Performance for the three months over the year was an improvement on the $7 million loss, 29 cents per diluted share, recorded in the second quarter of 2018.
The company, which designs, develops and makes aerogel insulation, has a manufacturing facility in East Providence.
The increase in revenue over the year was largely attributable to an increase in product revenue to $28.9 million from $21.1 million.
“Second-quarter revenue growth of 36% was driven by a high volume of subsea project work, initial shipments to the PTT LNG Nong Fab Terminal project and strong demand in our core U.S. petrochemical and refinery markets,” said Don Young, CEO and president of Aspen Aerogels, in a statement. “As a result of this strong growth, we experienced solid improvement in net loss and Adjusted EBITDA versus the second quarter of 2018.”
The company said that it is continuing to explore the role of aerogel technology in the battery materials market. The company spent $1.9 million on research and development in the quarter, a 14% increase year over year.
Young added that “We also made good progress on our strategic initiative to leverage our aerogel technology platform to develop breakout opportunities in new markets. We continue to work closely with BASF to commercialize a line of next-generation, high-performance building insulation. … Our initial discussions with prospective battery industry partners have helped us to focus our development efforts on high-value and high-potential opportunities for our carbon aerogel technology.”
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
