A123 Systems (AONE) Misses, Announces Ford/Eaton Deal, Shares Down AH

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06:21:31 pm on May 11, 2010

A123 Systems (AONE) is giving back today’s gains and then some after reporting a wider loss than expected after the bell.  While revenues were in line at $24.5 million, the company reported a loss of .28/share which was .06/share greater than expectations.  That’s also a wider loss than the year ago quarter (.18/share loss) with revenues just 5% higher.  A disappointing quarter from AONE for sure, but it’s all about the future. 

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CEO David Vieau discussed it: “We are very pleased with the growing momentum of the advanced battery systems market and A123’s business in particular. We are solidifying our leadership position in the transportation market, where we have been awarded a development program by one of the largest automotive manufacturers to develop next-generation battery cells. This is further validation of the competitiveness of our technology and represents an advancement in our relationship with a major passenger OEM. We also continue to grow in the heavy duty segment of the transportation market where we have been selected by Eaton to supply battery systems for Ford F550 chassis-based plug-in hybrid electric vehicles.

Other highlights:

– doubles number of customers its engaged in development/design with
– customer activity levels increasing in the electric grid market
– plans to expand final cell assembly capacity by 200MW-hours (about 35% increase)

Technically, this is a stock that is really struggling and has yet to indicate that it’s stabilizing even after dropping more than 50% since the beginning of the year.  It looks like it may find some support around the $10 level, but it needs some healthy buy interest to make that more of a certainty.

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