SpaceDev, Inc.
today reported financial results for the third quarter
of 2003.
“SpaceDev made significant progress this quarter both in terms of
our ability to bring in new projects and customers and in managing the
financial side of our business,” said Jim Benson, SpaceDev founding
chairman and chief executive. “We were awarded four new contracts and
enhanced our ability to manage costs, resulting in considerable
strides towards profitability.”
Revenue for the third quarter of 2003 was $768,000 compared to
$754,000 in the second quarter of 2003 and $757,000 in the third
quarter of 2002. SpaceDev reported a net loss for the quarter of
$208,000, or $0.01 per share, compared to a net loss of $413,000, or
$0.03 per share, in the second quarter of this year and $355,000, or
$0.03 per share, in Q3 of 2002, prior to accounting for a one-time
credit of $454,000 related the resolution in the Company’s favor of a
legal claim. Including this credit, the company reported net income of
$99,000, or $0.01 per share, in the third quarter of 2002.
For the nine-months ending September 30, 2003, SpaceDev reported
net sales of approximately $2.1 million compared to net sales of
approximately $2.6 million for the same period in 2002. Sales in 2003
were mainly from new contracts with the Air Force Research Laboratory
(“AFRL”) and Missile Defense Agency (“MDA”); although the Scaled
proprietary propulsion (private sector rocket motor) contract, CHIPSat
microsatellite program and other programs also contributed. In the
first nine-months of 2002, sales were mainly comprised of the CHIPSat
program and the private sector rocket motor contract.
During the nine-months ending September 30, 2003, SpaceDev
incurred a net loss of approximately $1.0 million, or $0.06 per share,
compared to a net loss of approximately $18,000, or $0.01 per share,
for the same period in 2002. The increase in the net loss was due to
the substantial completion of the CHIPSat program in early 2003
combined with delays in the initiation of new government contracts and
the previously mentioned one-time recovery charge related to a
transaction in the third quarter of 2002.
During the quarter, SpaceDev won the following new contracts:
- The AFRL Small Business Innovation Research (SBIR) program
engaged SpaceDev to develop microsatellite and nanosatellite
bus and subsystem designs. This contract will enable SpaceDev
to explore the further miniaturization of its unique and
innovative microsat subsystems. It will also enable SpaceDev
to explore ways to reduce the time and cost to build small
high performance satellites, through further standardization,
in order to help define de facto standards for payload
hardware and software interfaces. - SpaceDev won a second AFRL SBIR contract to design and begin
the development of the SpaceDev Streaker(TM) small launch
vehicle. The SpaceDev Streaker(TM) will be designed to
responsively and affordably lift microsats and payloads up to
1,000 lbs. to Low Earth Orbit. SpaceDev has obtained
additional Congressional funding for the development of its
small launch vehicle. - The MDA contracted SpaceDev to design three formation-flying
microsatellites for a multi-billion-dollar national missile
defense program. The application of microsats to missile
defense is a major breakthrough and is being led by SpaceDev.
The total value of this second MDA contract is $800,000. - Lunar Enterprise of California awarded a contract to SpaceDev
for a first phase project to begin developing a conceptual
mission and spacecraft design for a robotic Lunar Dish
Observatory lander. This follow-on to the SpaceDev/Boeing
lunar orbiter project will be designed to put a small dish
antenna near the south pole of the Moon. From that location it
will be in near-constant sunlight for solar power generation
and should be able to perform radio astronomy while
communicating with ground stations on Earth.
In addition to the AFRL and MDA contracts and SBIRs recently
awarded to SpaceDev, in the current quarter, the Company was chosen as
the exclusive provider of hybrid technology and critical components
for the rocket motor on Scaled Composites’ manned SpaceShipOne. The
SpaceDev hybrid propulsion system, which is safe, low-cost and the
largest of its kind in the world, burns a combination of rubber and
laughing gas. The Company had competed for this project with another
rocket motor subcontractor for almost two years, and was recently
announced the winner and exclusive supplier.
For more information regarding the Company, please review the
Company’s filings on the SEC EDGAR system at www.sec.gov or at
www.spacedev.com.
About SpaceDev
SpaceDev s=spdv.ob&d=t”>SPDV – News) creates and sells affordable and innovative
space products and solutions to government and commercial enterprises.
For more information, visit www.spacedev.com.
This news release may contain forward-looking statements
concerning the Company’s business and future prospects and other
similar statements that do not concern matters of historical fact.
Forward-looking statements relating to product development, business
prospects and development of a commercial market for technological
advances are based on the Company’s current expectations. The
Company’s current expectations are subject to all of the uncertainties
and risks customarily associated with developing business ventures
including, but not limited to, risks associated with new product
development and availability of raw resources and suppliers, risks to
marketed products and availability of financing and other sources of
income, as well as risks discussed in the Company’s periodic reports
filed with the U.S. Securities & Exchange Commission. The Company’s
actual results may differ materially from current expectations.
Readers are cautioned not to put undue reliance on forward-looking
statements contained in this release and to read it in conjunction
with the Company’s annual report on Form 10-KSB, including the
consolidated financial statements filed therewith. The Company
disclaims any intent or obligation to update publicly these
forward-looking statements, whether as a result of new information,
future events or for any other reason.
SpaceDev, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
At September 30, 2003 2002
----------------------------------------------------------------------
Assets
Current Assets
Cash $314,229 $35,743
Accounts receivable 297,037 117,552
Other assets 10,581 -
----------------------------------------------------------------------
Total current assets 621,847 153,295
Fixed Assets - Net 115,288 2,090,925
Capitalized Software Costs - 138,010
Other Assets 35,544 82,465
----------------------------------------------------------------------
$772,679 $2,464,695
The accompanying notes are an integral part of these condensed
consolidated financial statements.
SpaceDev, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
At September 30, 2003 2002
----------------------------------------------------------------------
Liabilities and Stockholders' Deficit
Current Liabilities
Current portion of notes payable $44,654 $215,065
Current portion of capitalized
lease obligations 19,804 35,480
Notes payable - related party 80,000 234,666
Accounts payable and accrued
expenses 349,464 542,786
Accrued payroll, vacation and
related taxes 116,725 132,786
Customer deposits and deferred
revenue - 219,957
Billing in excess of costs
incurred and estimated earnings
(Note 2) - 81,010
Provision for anticipated loss
(Note 2) - 17,914
Revolving credit facility (Note 4) 629,500 -
Other accrued liabilities (Note 3) 139,759 -
----------------------------------------------------------------------
Total current liabilities 1,379,906 1,479,664
Notes Payable, Less Current Maturities
(Note 4) 55,012 2,330,126
Capitalized Lease obligations, Less
Current Maturities 6,239 16,018
Notes Payable - Related Party, Less
Current Maturities 506,397 559,931
Deferred Gain - Assets Held for Sale
(Note 4) 1,094,539 -
Deferred Revenue 5,000 5,000
----------------------------------------------------------------------
Total liabilities 3,047,093 4,390,739
Commitments and Contingencies
Stockholders' Deficit
Convertible preferred stock,
$.0001 par value, 10,000,000
shares authorized no shares
issued or outstanding - -
Common stock, $.0001 par value;
50,000,000 shares authorized,
and 16,029,360 and 14,391,008
shares issued and outstanding,
respectively 1,602 1,439
Additional paid-in capital 8,921,791 7,785,810
Additional paid-in capital -
stock options 750,000 750,000
Deferred compensation (250,000) (250,000)
Accumulated deficit (11,697,807) (10,213,293)
----------------------------------------------------------------------
Total stockholders' deficit (2,274,414) (1,926,044)
----------------------------------------------------------------------
$772,679 $2,464,695
The accompanying notes are an integral part of these condensed
consolidated financial statements.
SpaceDev, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three and Nine Months Ending Three Months Ending
September 30, 2003 % 2002 %
------------------------------------ ----------- ---- ----------- ----
Net Sales $767,780 100% $757,116 100%
Total Cost of Sales 642,940 84% 709,419 94%
Gross Margin 124,840 16% 47,697 6%
------------------------------------ ----------- ---- ----------- ----
Operating Expenses
Marketing and sales expense 112,321 15% 89,762 12%
Research and development 20,555 3% - 0%
Stock and stock option based
compensation 4,685 1% (454,062) -60%
General and administrative 137,324 18% 247,731 33%
------------------------------------ ----------- ---- ----------- ----
Total Operating Expenses 274,885 36% (116,569) -15%
------------------------------------ ----------- ---- ----------- ----
Profit (Loss) from Operations (150,045) -20% 164,266 22%
------------------------------------ ----------- ---- ----------- ----
Non-Operating Expense (Income)
Interest expense 30,056 4% 65,093 9%
Non-cash interest expense debt
discount (recovery) (Note 5) (88,408) -12% - 0%
Gain on Building Sale (Note 4(a)) (29,319) -4% - 0%
Loan Fee - Equity Compensation 148,412 19% - 0%
------------------------------------ ----------- ---- ----------- ----
Total Non-Operating Expense (Income) 60,741 8% 65,093 9%
------------------------------------ ----------- ---- ----------- ----
Profit (Loss) Before Taxes (210,786) -27% 99,173 13%
Income tax benefit (2,526) 0% - 0%
Net (Loss) Income $(208,260) -27% $99,173 13%
------------------------------------ ----------- ---- ----------- ----
Net Loss Per Share:
Net loss ($0.01) $0.01
------------------------------------ ----------- ---- ----------- ----
Weighted-Average Shares
Outstanding 15,525,203 14,877,307
Three and Nine Months Ending Nine Months Ending
September 30, 2003 % 2002 %
----------------------------------- ------------ ---- ----------- ----
Net Sales $2,054,576 100% $2,569,524 100%
Total Cost of Sales 1,682,424 82% 2,150,996 84%
Gross Margin 372,152 18% 418,528 16%
----------------------------------- ------------ ---- ----------- ----
Operating Expenses
Marketing and sales expense 311,368 15% 158,534 6%
Research and development 272,537 13% - 0%
Stock and stock option based
compensation 4,685 0% (454,062) -18%
General and administrative 661,943 32% 546,695 21%
----------------------------------- ------------ ---- ----------- ----
Total Operating Expenses 1,250,533 61% 251,167 10%
----------------------------------- ------------ ---- ----------- ----
Profit (Loss) from Operations (878,381) -43% 167,361 7%
----------------------------------- ------------ ---- ----------- ----
Non-Operating Expense (Income)
Interest expense 64,683 3% 185,105 7%
Non-cash interest expense debt
discount (recovery) (Note 5) 112,500 5% - 0%
Gain on Building Sale (Note 4(a)) (78,181) -4% - 0%
Loan Fee - Equity Compensation 148,412 7% - 0%
----------------------------------- ------------ ---- ----------- ----
Total Non-Operating Expense (Income) 247,414 12% 185,105 7%
----------------------------------- ------------ ---- ----------- ----
Profit (Loss) Before Taxes (1,125,795) -55% (17,744) -1%
Income tax benefit - 0% - 0%
Net (Loss) Income $(1,125,795) -55% $(17,744) -1%
----------------------------------- ------------ ---- ----------- ----
Net Loss Per Share:
Net loss ($0.07) $0.00
----------------------------------- ------------ ---- ----------- ----
Weighted-Average Shares
Outstanding 15,408,961 14,853,988
The accompanying notes are an integral part of these condensed
consolidated financial statements.
Contact:
SpaceDev, Inc.
Richard B. Slansky, 858-375-2030
richard.slansky@spacedev.com
or
The Investor Relations Group
Investor Contact:
Laura Wyrick or Dian Griesel, 212-825-3210
Media Contact:
Janet Vasquez or Stephanie Schroeder, 212-825-3210
