I hate to say that falling revenue and a widening loss are progress for A123 Systems
The crescendo begins
Like a conductor directing an orchestra, A123 is hoping this is the silence before a loud crescendo for the company. And hopefully it's right.
Revenue fell to $18.1 million, from $24.5 million in the first quarter of last year, and net loss exploded to $53.6 million, or $0.51 per share. But the focus was on the future and expected growth during the rest of the year.
The company began ramping production for Fisker Automotive in the first quarter and other automakers will follow. BMW, Daimler, and Navistar are all expected to move into mass production during this year. But the surprise of the day was an agreement with Smith Electric Vehicles on a production and supply agreement. Valence Technology
As a result of these product ramps, A123 is expecting revenue to double during 2011 from 2010 levels. Fisker will drive that growth, but grid shipments are also expected to double as utilities test their systems.
Battery makers are too risky right now, with losses mounting and periodic capital raises, but if they ramp sales fast enough, that could change by the end of the year.