Satcon Technology Corp., a Boston-based maker of utility scale power management technology, saw its revenue for the second quarter of 2010 soar by more than 250 percent over the same period in 2009, setting a sales record. The company still saw its net losses grow as well, however.
For Q2 2010, Satcon (Nasdaq: SATC) reported a revenue jump to $27.6 million, versus the $7.6 million the company took in during the second quarter of 2009. Because operating costs to make that sales revenue also climbed, Satcon saw its losses grow from $7.1 million in Q2 2009 to $8.5 million in this most recent quarter that ended June 30, 2010.
Cash and cash equivalents on hand grew from $13.4 million in Q2 2009 to $14.4 million in Q2 2010. In addition, accounts receivable at the end of this quarter were $28.5 million, significantly up from the $17.6 million in AR that Satcon reported for the same time frame last year.
According to Steve Rhoades, Satcon’s president and CEO, the sales revenue in the most recent quarter “represented the largest quarter in Satcon’s history.” Gross margin also climbed to 21 percent, Rhoades said, mainly from the savings from moving its main production plant to Shenzhen, China.
In June, Satcon took on $12 million in debt under a new subordinated debt facility with Compass Horizon Funding Company LLC, a division of Horizon Technology Finance. The company tapped Donald R. Peck as its new CFO in March, coming to Satcon with experience as CFO and treasurer at data center virtualization company Egenera Inc.
As of March, Satcon reported approximately 225 employees. The company has had down quarters for at least the last five, with a loss of $5.5 million in the first quarter of 2010 on revenue of $14.7 million. That cut the losses of the first quarter of 2009 nearly in half, however. Satcon lost $10.7 million in Q1 2009, on revenue of $13.4 million.