NORTHBOROUGH, Mass. – Aspen Aerogels Inc., an energy technology company, widened its third-quarter loss to $3.1 million, or 13 cents per diluted share, and saw a decrease in revenue in the period that ended Sept. 30.
Aspen had recorded a loss in the 2015 third quarter of $2.5 million, or 11 cents per diluted share.
Third-quarter revenue dropped 6.3 percent to $29.6 million from $31.5 million during the year-ago quarter.
Non-GAAP EBIDTA, a measure of operating performance that the company uses 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, totaled $1.5 million in the third quarter, compared with $1.7 million a year ago.
“We operated well in the third quarter, despite the anticipated weakness in the upstream energy markets. We achieved solid improvement in gross profit and the modest declines in net income and adjusted EBITDA were driven primarily by the increase in expense associated with our patent enforcement actions. Record revenues in the Asian market, led by continued shipments to the South Asia petrochemical project, were offset by recent softness in the North American and European downstream markets,” Don Young, president and CEO of Aspen Aerogels, said in a statement.
He said that looking ahead, the company anticipates “that the general uncertainty in the energy markets and recent weakness in the downstream markets will continue into 2017.”
“With this view of the market, we believe that we could be challenged to maintain our business levels. Accordingly, we have decided to temporarily delay the board approved Statesboro, Ga., manufacturing expansion and its related financing to better align the expansion project with our assessment of demand for the 2018-to-2020 period,” Young said.
He said the company completed construction and began operation of the pilot line in its East Providence facility, which is designed to support creation of next-generation products for new and existing markets.
The company also updated its full-year outlook, with revenue expected to range between $118 million and $121 million; it previously said it expected revenue between $117 million to $125 million. It also expects the net loss to range between $9.4 million and $10.6 million, an increase from $6.8 million to $8.6 million previously announced.