NORTHBOROUGH, Mass. – Aspen Aerogels Inc. reported a $6 million loss in the first quarter of 2019, or 25 cents per diluted share, an improvement from a $6.8 million loss in the first quarter of 2018, or 29 cents per diluted share, according to a filing with the Securities and Exchange Commission Friday.
Aspen Aerogels manufactures its products at an East Providence facility. The company, which designs, develops and manufactures aerogel insulation, reported revenue of $27.9 million for the quarter, a 21% increase year over year.
“First-quarter revenue growth of 21% was driven by strong demand in our U.S. and European markets and a high volume of subsea project work,” stated Don Young, president and CEO of Aspen Aerogels. “Despite the strong growth, we experienced a slight decline in Adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] versus the first quarter of 2018, principally due to a year-over-year increase in raw-material costs. We expect to realize the full benefit of our 2019 price increase and other actions intended to mitigate the impact of these raw-material cost increases beginning in the second quarter. As a result, we project strong revenue growth and profit improvement for the remainder of 2019.”
In its report, the company noted it is making investments to increase capacity at its Rhode Island manufacturing facility. The company also said it receives funding from several U.S. government agencies and other institutions in the form of research and development contracts.
The company’s product revenue was $26.8 million in the quarter, an increase from $22.5 million one year prior. Research services revenue increased to $1.1 million from $553,000 in that time.
“We have made significant progress thus far in 2019 toward achieving both our annual and longer-term objectives. We were awarded the $35 [million] to $40 million PTT LNG Nong Fab Terminal project, won our patent lawsuits in Germany against two Chinese infringers, and expanded the scope of our strategic partnership with [the German chemical company] BASF focused on the building-materials market,” added Young.
Chris Bergenheim is the PBN web editor. You may reach him at Bergeheim@PBN.com.