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What: Shares of A123 Systems (Nasdaq: AONE) fell 12% today after the company announced a dilutive stock offering.

So what: A123 plans to offer 18 million shares of common stock and $125 million of convertible subordinated notes, with an option for underwriters to purchase an additional 2.7 million shares and $18.75 million in notes. Pricing for shares and an interest rate for the notes have not been released, but the market isn’t happy about being diluted once again.

Now what: A123 Systems has shown promise for a long time, but its production just hasn't ramped up the way the company anticipated. Worse yet, A123 has burned cash at an incredible rate, plowing through $323 million from 2009 to 2010, with no end in sight to the losses. I wasn’t excited about shares earlier this month, and I see no reason to buy the dip today. Until A123 can show us some solid profits, investors are in for nothing but disappointment.

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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.