Satcon Sees Q2 Revenue of $45M to $47M vs. $50M to $60 Prior

Satcon Technology Corporation® SATC today announced preliminary unaudited results for revenue and gross margin for its second quarter ended June 30, 2011. Based on preliminary financial data and subject to the final closing of the company's financial statements, Satcon expects second-quarter 2011 revenue will be between $45 million and $47 million, compared with its previously announced guidance of $50 million to $60 million. The narrowed revenue range reflects the continued impact of changes in government incentives in the company's higher margin markets in Europe as well as delays on a few projects that have been pushed into the third quarter. The company also revised its gross margin estimate for the quarter, which is now expected to be between 7% and 11%, below the company's previously announced guidance of 17% to 20%. Q2 gross margin was affected by the lower revenue range, and the effects of the slowdown in the European market. Additionally, the company incurred one-time expenses relating to the revaluation of material due to lower component costs, an excess inventory provision, and a non-recurring expense associated with a major project in North America. This project, along with an increase in accounts receivable reserves, will also impact the company's Q2 operating expenses.