A 123 Systems Inc. expects to post a net loss of $125 million(M) for the first quarter on revenue of $10.9M. A123 Systems revised their 2012 revenue forecast downward from $230M to $300m to $145 M to $175 M. Because the $300M revenue initially forecast less the $125M first quarter loss equals the new $175M revenue forecast, it looks like they think the rest of the year will be pretty smooth sailing. That is an optimistic call, it would seem, in view of only $10.9M revenue in the 1st quarter. Part of the first quarter loss was a $51M charge to fix the Fisker batter packs. To read more click here.
Besides making batteries for Fisker which I suppose is their principal client, A123 systems have made batteries for the GM Spark, BMW, and Shanghai Automotive. They have supplied batteries for Tata transit buses and Daimler hybrid buses. They have installed some 90MW of storage capacity for wind farms.
A1213 participated in Obama’s Energy Department and the State of Michigan’s incentives programs. In September 2010, A123 received a $249 million grant from the Energy Department and $125 million in state of Michigan incentives.
Do you think this company will survive? It’s a close call,one would think.
cbdakota
Climate Change Sanity 