NORTHBOROUGH, Mass. – Aspen Aerogels reported another third-quarter loss, of $2.5 million, despite “record” revenue of $31.5 million.
The energy-technology company on Thursday reported a third quarter loss of 11 cents per diluted share, an increase of 4.5 percent, compared with third-quarter 2014’s loss of $2.4 million, or 10 cents per share.
The company did not give a detailed explanation regarding the reasons for the loss and a representative did not respond immediately to requests for comment. It did report an interest expense of $46,000, compared with $47,000 last year, as well as more than $500,000 in sales and marketing expenses.
Don Young, president and CEO of Aspen Aerogels, said the company’s third production line helped boost growth in the quarter, “despite lower than planned manufacturing yields and unplanned manufacturing downtime due to a CO2 supply disruption.”
Officials said that due to the CO2 supply disruption, the East Providence manufacturing facility had to be idled, and nearly four days of production were lost, reducing output and revenue by $1.45 million.
Still, third-quarter revenue rose 24 percent. In addition, product revenue climbed 26 percent to $30.9 million in the quarter that ended Sept. 30.
Young added that strong demand in the North American, European and subsea markets offset weakness in the Latin American market.
The company also announced that a second manufacturing facility will be built in Statesboro, Ga.
“The region is home to a strong, available workforce and will provide Aspen with secure and low-cost utilities and good access to critical raw materials,” Young said in a statement about the planned new facility.
The company updated its full-year outlook, and is estimating that revenue will range from $120 million to $122 million. Revenue estimates previously were between $118 million to $120 million. Earnings per share are projected to range between a loss of 28 and 31 cents, compared with previous estimates of a loss of 26 and 30 cents.
“We expect continued solid growth in the refinery, petrochemical and LNG segments of the energy market in 2016. However, we will be challenged to offset the expected decrease in revenue due to the completion of the multiyear Asian petrochemical project and a reduction in the number and volume of subsea projects from this year’s record levels,” Young said.
“Accordingly, we are projecting revenue for 2016 at approximately the same level projected for 2015,” he said.
