Headlines > News > SpaceDev Reports Year-End 2005 Results

SpaceDev Reports Year-End 2005 Results

Published by Sigurd De Keyser on Thu Mar 30, 2006 6:51 pm
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Twelfth Consecutive Quarter of Revenue Growth

POWAY, CA – March 28, 2006 – SpaceDev, Inc. (OTCBB: SPDV) reported its financial results for the year ended December 31, 2005. The Company recorded its twelfth consecutive quarter of revenue growth and eighth consecutive quarter of operating profit.

For the fiscal year ended December 31, 2005, SpaceDev’s revenue was approximately $9.0 million, an increase of 84% compared to approximately $4.9 million for 2004. The increase in revenue was due primarily to successful execution and performance under the Company’s contract with the Missile Defense Agency and other smaller government contracts.

“With a lot of hard work and dedication from the SpaceDev team, we achieved many technical and financial targets for fiscal 2005,” said Mark N. Sirangelo, SpaceDev’s new chief executive officer. “I am honored to have joined such an innovative and ground-breaking company. Recently, SpaceDev completed the acquisition of Starsys Research Corporation, closed on a $5.2 million equity financing to be used for the Starsys acquisition and for growth capital, and was awarded several new small contacts in 2005 and early 2006 for initial phases for its sophisticated micro- and nano-satellites and hybrid rocket motor propulsion systems.”

Additionally, Mr. Sirangelo reported, the Company introduced, in 2005, a low-cost modular micro-satellite, called the SpaceDev Mission Xcelerator(TM) Solution, which offers high performance at a low cost per pound. The package includes a SpaceDev MMB-100 satellite bus, payload integration services, a launch and one year of technical support, all for less than $20 million in less than 20 months. SpaceDev also introduced a unique concept for the SpaceDev Dream Chaser(TM) vehicle, a six-passenger human space transport system. The system is designed to meet the needs of the emerging commercial space tourism market, as well as NASA’s need for routine, safe and affordable crew and cargo access to the International Space Station.

Net income for the year ended December 31, 2005 was approximately $501,000, or $0.02 per share, compared to a loss of approximately $3,027,000, or $0.16 per share, for 2004. The increase was primarily due to the non-recurrence in 2005 of 2004’s non-cash interest expense of approximately $3,254,000, which was related to the Company’s revolving credit facility with Laurus Master Fund, Ltd.

Income from operations was approximately $312,000 for the year ended December 31, 2005, compared to approximately $144,000 for 2004. During the year ended December 31, 2005, EBITDA increased to approximately $503,000, or 5.6% of revenue, compared to an EBITDA of approximately $228,000, or 4.7% of revenue, for 2004. EBITDA is a non-GAAP measure defined as GAAP net income before net interest income (expense), taxes, depreciation and amortization.

Interest expense, including non-cash interest expense, is not included in the calculation of EBITDA. The Company has substantially reduced its non-cash charges from financing activities in 2005 but may continue to incur charges related to stock and stock-based compensation to employees and others, as required under FAS No. 123R, or related to the exercise of warrants under previous debt financings.

The following table reconciles EBITDA to net income (loss) for the years ended December 31, 2005 and 2004:
this table reconciles EBITDA to net income (loss) for the years ended December 31, 2005 and 2004:

EBITDA is a non-GAAP financial measure and should not be considered as an alternative to net income (as an indicator of operating performance) or as an alternative to cash flow (as a measure of liquidity or ability to service debt obligations).

Net cash provided by operating activities totaled approximately $397,000 for the year ended December 31, 2005, an increase of approximately $507,000 compared to about $110,000 used in operating activities during 2004. The improvement in cash from operating activities resulted from the Company’s performance under government contracts.

SpaceDev’s President and chief financial officer, Richard B. Slansky said, “During 2005, in an effort to further grow our Company and create value for our stockholders, we began to focus our attention on creating a larger engineering and technical staff to support the growing need for our technology, products and services. Our recent merger with Starsys, we believe, will add critical mass to SpaceDev by increasing not only our revenues but also our ability to compete for and successfully execute on larger programs and projects. We believe the merger will also prove advantageous to our stockholders, be accretive and help position us as a viable competitor in the mid-sized aerospace marketplace.”

To download this entire Financial Press Release including all the Financial Tables click here.

Year-End Conference Call Details

SpaceDev will host a conference call March 29, 2006 at 11:00 a.m. EST to discuss the year-end results. All those interested in hearing management’s discussion are invited to join the call by dialing (877) 407-9205. International participants may access the call by dialing (201) 689-8054. Participants may also access a live webcast of the conference call through the Investor Relations section of SpaceDev’s website, www.spacedev.com. A replay of the webcast will be available for 90 days.

For more information on SpaceDev, please review the Company’s filings on the SEC EDGAR system at www.sec.gov or at www.spacedev.com.

Non-GAAP Financial Measures

This release contains disclosure of EBITDA, which is a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The definition of EBITDA used to calculate the EBITDA figures presented above, while considered the most common definition used by investors and financial analysts, may not be comparable to similarly titled measures reported by other companies. The Company believes that EBITDA provides an important additional perspective on its operating results, its ability to service its long-term obligations, its ability to fund continuing growth, and its ability to continue as a going concern. The Company’s management regularly evaluates its progress based on EBITDA. The Company believes that EBITDA, while providing useful information, should not be considered in isolation or as an alternative to other financial measures determined under GAAP, such as net income or loss (as an indicator of operating performance) or cash flow (as measure of liquidity).

About SpaceDev

SpaceDev (OTCBB: SPDV) creates and sells affordable and innovative space products and solutions to government and commercial enterprises. SpaceDev’s innovations include the design, manufacture, marketing and operation of sophisticated micro- and nano-satellites, hybrid rocket-based orbital Maneuvering and orbital Transfer Vehicles as well as sub-orbital and orbital hybrid rocket-based propulsion systems for safe human space flight. In addition, Starsys Research Corporation was acquired by SpaceDev on January 31, 2006, was renamed Starsys, Inc., and is now a wholly-owned subsidiary of SpaceDev. Starsys is engaged in the design and manufacture of mechanical and electromechanical subsystems and components for spacecraft. Starsys’ subsystems enable critical spacecraft functions such as pointing solar arrays and communication antennas and restraining, deploying and actuating of moving spacecraft components. For more information, visit www.spacedev.com.

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