A123 Systems (AONE) Misses With Another Large Loss, Still Optimistic About Q2 Revenue Ramp

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08:23:25 pm on May 9, 2011

A123 Systems (AONE) continues to bleed red ink, but the CEO still remains positively upbeat and confident that a revenue ramp begins this quarter and continues through the rest of the year.  We shall see, but for now the company is far away from profits and still in survival mode as the stock continues to tank.

The company posted an EPS loss of  .51/share which was larger than what analysts expected (loss of .46/share)  Considering the EPS loss was nearly double over the year ago period with a drop in revenues too, this is a company going backwards, not forwards.  Let’s see what they post for Q2 though.  It’s time to put up or shut up.  CEO David Vieau reiterated the same points he made last quarter about revenues ramping up.

"Our first quarter results were in-line with our expectations," said David Vieau, CEO of A123 Systems. "Even more importantly, in the first quarter, we commenced volume production of battery systems for Fisker. The ramping of this program reinforces our expectation for a revenue inflection point beginning in the second quarter. We continue to expect strong revenue growth throughout the second half of the year as well, which is supported by our customers already in production, as well as a number of customer programs that are expected to enter production during the year, including BMW, Daimler, and Navistar. Additionally, we advanced our relationship with Smith Electric Vehicles by entering into a production and supply agreement, and we anticipate delivering batteries under this program in the second half of this year."

Shares are down just a bit in after hours trading and it’s possible that the bulk of the bad news is out on AONE.  I think the action over the next week will be a big clue as to whether that’s the case or not.  What I’d want to see if a big surge with volume over the $7 level followed by an orderly digestion of gains to signal that a possible bottom may be in place.  For now it’s too soon to jump into shares of AONE.

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Comments  

yeah the companys finacials and stock are struggling because they built before demand kicked in. Now they are promising big sales growth for the next few quarters. Hopefully they are transparent about this and investors will get their money back.

 
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