A123 Systems Keeps Flowing Red Ink, Delays Production Ramp
A123 Systems (AONE) reported resultsafter the bell Tuesday that indicated the red ink continues to flowas the company missed analyst estimates and reported the 3rdstraight quarter of accelerating losses while revenues remainrelatively stagnant. The company reported a non GAAP loss of.42/share vs the analyst estimate of a .30/share loss on revenuesof $26 million which basically matched the analyst estimate. Tomake matters worse, they also indicated that their production rampwill now be delayed about six months until Q2 2011. However, thegoal of doubling year over year worldwide manufacturing capacity bythe end of 2010 remains on track.
CEO David Vieau tried to focus onthe future saying, "We remain very optimistic about ouropportunities and the pace of customer activity. We continue toexecute against a strategy to be the leading supplier oflithium-ion batteries to the transportation and electric gridmarkets, which we believe will create a very large and profitablecompany over the long-term."
The future may indeed be brightfor AONE, but investors are likely growing impatient and will haveto wait a lot longer before this company to be profitable. Perhapsit's time for a management shakeup. Shares are down nearly 12percent in after hours trading and taking out support of the 50 daymoving average.
Reprinted with permission fromGreen Stocks Central