Satcon Q1 results fall below expectations

The company adds that it anticipates "significant" worldwide photovoltaic growth this year, particularly in the U.S. and Canada.

Announcing its preliminary unaudited results, Satcon says that first quarter revenue should reach between $61 million and $63 million. While this is a significant increase on the first quarter of 2010, which achieved $14.7 million, the results are not as positive as the $65 million to $70 million the company had hoped for.

It says the discrepancy comes from a small number of customers, who have requested that delivery of their inverter systems be delayed until later in the year. Analysts at Jefferies & Co. add that the shipment pushouts were weather related and mostly occurred in Europe and North America.

Due to the changes in revenue expectations, Satcon says that gross margins are now expected to be within a range of 23 to 25 percent, which is below the company’s previously announced range of 25 to 27 percent.

"While we are pleased our quarterly revenue has grown year over year, our Q1 2011 revenue reflects delays in construction projects," says Steve Rhoades, Satcon’s president and chief executive officer.

"We continue to see significant year over year growth as a result of our diversified geographic strategy. We expect the global environment to improve as we head into the peak construction season. When combined with demand trends in the U.S. and Canada, as well as emerging new global markets, we continue to anticipate significant worldwide growth in 2011."