Solstice deliversfine-grained power harvesting and control with advanced utility ready gridinterconnection capabilities, while boosting total system power production andoverall performance. Satcon Spectrum is the world`s first complete solarmicro-grid solution built on a platform of the company`s proven industrial solarinverter solutions. It utilizes integrated energy storage in order to manageintermittency and provide the advanced control capabilities that utilitiesrequire in order to incorporate solar energy as a stable and controllablecontributor to their power generation portfolio. "We are pleased that while market conditions stressed the overall solarindustry, we were still able to increase our revenue over the same quarter lastyear," said Steve Rhoades, President and Chief Executive Officer at Satcon. "Inconjunction with improving our operational efficiency and expanding ourcommercial capabilities, we also invested heavily in R&D, as indicated by therecent general availability release of the PowerGate Plus 1 megawatt inverterand the launch of our next generation power conversion platform, Solstice." Financial ResultsThe company reported total revenue for the first quarter of 2009 of $14.9million, an increase from $11.4 million in the first quarter of 2008.
Grossmargin for the quarter was 10%, compared with 6% in the same period of 2008. Loss from operations for the first quarter was approximately $5.2 million,compared with a loss of $2.8 million for the same period in 2008. Net loss attributable to common shareholders was $11.9 million, or ($0.23) pershare, compared with net loss attributable to common shareholders of $4.3million, or ($0.09) per share in the same period in 2008. The loss includes $1.1million of non-cash charges for dividends and accretion related to the company`sSeries C preferred stock. This loss also includes $5.4 million of non-cashcharges related to Satcon`s warrant liability of which $4.7 million are a directresult of the company`s mandatory adoption of EITF 07-05 "Determining Whether anInstrument (or Embedded Feature) Is Indexed to an Entity`s Own Stock", whichrequires the company to record previously issued warrants as a liability ratherthan an equity as reported in prior financial statements. These charges tooperations do not reflect new financing activity, but are due to the company`srequired adoption of new accounting pronouncements from the FASB, which mandatethe company account for its previously issued warrants in this manner. Cash and cash equivalents at April 4, 2009 were $6.8 million, compared with$10.0 million at December 31, 2008.
The company reported an ending backlog on April 4, 2009 of approximately $12.2million, compared with backlog of $23 million on December 31, 2008. The decreasein backlog for the first quarter was due to the impact of the challengingmacroeconomic environment. "We believe that our firm commitment to technology innovation and productdevelopment will enable us to extend our leadership position in the worldwidelarge scale and utility grade PV market," said Rhoades. "Looking ahead, weanticipate the weak economic environment to continue to impact our financialperformance in the second quarter. However, we have a strong pipeline of largescale projects worldwide and anticipate improved sales of our renewable energysolutions in the second half of 2009 which enables us to continue to guidetoward operating profitability in the second half of the year." Conference Call ReminderThe company will hold a conference call to review its financial results andbusiness highlights today, May 6, 2009 at 5:00 p.m ET. During the conferencecall, the company may answer questions concerning business and financialdevelopments and trends, and other business and financial matters. The company`sresponses to these questions, as well as other matters discussed during theconference call, may contain or constitute information that has not beenpreviously disclosed.