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August 22nd, 2005
SatCon Technology Corporation(C) (NASDAQ NM: SATC), a company with operations in microelectronics,
motors and electronic power management systems for the renewable energy market, reported that it recently has completed a
financial transaction that involved the sale of 4.7 million shares of common stock and warrants. The company recorded proceeds
from the stock and warrants of about $5.8 million. The company reported that it plans to use the proceeds for its marketing
and sales efforts in the alternative energy and power grid markets. According to SatCon President, Millard Firebaugh, "The
proceeds from this sale of common stock and warrants will allow SatCon to continue aggressive growth in the Alternative Energy,
Hybrid-Electric Vehicle and Grid Support markets. These markets are growing at accelerating rates. The Energy Policy Act further
reinforces the future market potential. SatCon already has successful products in these markets from which we are experiencing
our most rapid growth in product revenue. We are positioning for success with appropriate investment."
The company also released financial information with the announcement of the financing, "Our revenue for the quarter
was $8.2 million dollars compared to $8.6 million in 2004," said David Eisenhaure, CEO at SatCon. "However, we have an additional
$1.3 million in deferred revenue related to the shipment of a Rotary UPS made during the quarter, and $1.5 million in revenue
deferred from Q2 for the EDO program. Our operating loss for the third quarter was $2.2 million, compared to $0.7 million
in 2004. That loss was primarily due to higher costs of manufacturing as we ramp up our support in the Power Systems Division
for planned increased production in the Alternative Energy, HEV and Grid Support market sector."
The company also indicated that the solar market was on its list of business opportunities.
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