SOURCE: SpaceDev, Inc.

November 09, 2007 09:00 ET

SpaceDev Reports Third Quarter and Nine Month Fiscal 2007 Results

Nine Month Revenue Increases 11%, Net Income Increases Over 230%, EBITDA Increases Over 150%

POWAY, CA--(Marketwire - November 9, 2007) - SpaceDev, Inc. (OTCBB: SPDV) reported its financial results for the nine and three months ended September 30, 2007 with revenue over $25.3 million and $7.6 million for the two periods, respectively, as well as net income of over $214,000 and $57,000 for the nine and three month periods ended September 30, 2007, respectively. The Company also experienced EBITDA for the nine and three month periods of approximately $1.7 million and $548,000, respectively.

"We are focused on continuing to show financial progress as we build SpaceDev to the next level," said Mark N. Sirangelo, SpaceDev Chief Executive Officer and Chairman of the Board. "The Company is performing to plan for the year, and we believe that we are positioning ourselves to take advantage of future opportunities in the mid-market aerospace industry. We have a lot of work still to do; however, we are progressing as anticipated and are laying the foundation for our future."

The Company's primary financial information is shown below, comparing the first nine months of 2007 with the first nine months of 2006 and the three months ending September 30, 2007 with the three months ending September 30, 2006. The discussion of the Company's financial results should be read in conjunction with the Company's consolidated financial statements and the notes thereto and the other financial information appearing in the Company's Form 10-QSB filing with the Securities and Exchange Commission.

Revenue - SpaceDev reported revenue of approximately $25.3 million for the nine months ended September 30, 2007, an increase of approximately $2.5 million, or 11%, from the approximately $22.8 million in revenue reported for the same period in 2006. The Company reported revenue of approximately $7.6 million and $7.0 million in the three months ended September 30, 2007 and 2006, respectively, an increase of approximately $600,000, or 9%.

Income from Operations - The Company realized income from operations of approximately $539,000 in the first nine months of 2007, compared to an operating loss of $32,000 for the same nine months in 2006. During the first nine months of 2007, the Company's EBITDA increased to approximately $1.7 million, or 7% of net sales, compared to an EBITDA of $682,000, or 3% of net sales, for the same nine months in 2006. SpaceDev also realized income from operations of approximately $164,000 in the third quarter of 2007, compared to operating income of approximately $4,000 for the same three month period in 2006. During the three months ended September 30, 2007, the Company's EBITDA increased to approximately $548,000, or 7% of net sales, compared to an EBITDA of $230,000, or 3% of net sales, for the same three months in 2006.

Net Income - Net income for the first nine months of 2007 was approximately $214,000, compared to approximately $65,000 for the same nine month period in 2006. Net income for the three months ended September 30, 2007 was approximately $58,000, compared to approximately $21,000 for the same three month period in 2006.

Cash Position - At September 30, 2007, the Company's cash position, which included cash reserves and cash available for investment, was approximately $5.1 million compared to approximately $1.4 million at December 31, 2006, an increase of approximately $3.7 million.

"In September, we raised approximately $4.4 million in a financing arrangement with two strategic and accredited aerospace investors: OHB Technology AG, a leading European space technology company and MT Aerospace, a subsidiary of OHB and an established supplier in the aeronautics, aerospace and defense sectors," said Richard B. Slansky, SpaceDev's Chief Financial Officer. "We believe that the relationship between SpaceDev and OHB/MT may evolve into a strategic one of mutual high level benefit by actively exploring manufacturing opportunities using our production facilities, systems development by both organizations, and new business program opportunities in Europe as well as in the United States."

Third Quarter Conference Call Details

As previously announced, SpaceDev will host a conference call on Tuesday, November 13, 2007, at 10:30 a.m. EST. All those interested in hearing management's discussion of the quarter are invited to join the call by dialing (866) 289-3234 and entering the PIN 8832 when prompted. A replay of the conference call will also be available for 7 days through the investor relations section of SpaceDev's website, www.spacedev.com.

SpaceDev's Acquisition of Starsys. SpaceDev's financial results for 2006 included only partial operations from Starsys, since the merger was only effective on January 31, 2006. Beginning on February 1, 2006, Starsys' operations and financial results were consolidated into SpaceDev's financial statements. Comparisons of 2007 results to 2006 reflect the partial period disclosure.

Non-GAAP Financial Measures


                                              September 30,  September 30,
For the nine months ended                         2007           2006
                                               (Unaudited)    (Unaudited)
                                              -------------  -------------
Net Income                                    $     214,221  $      64,678
                                              -------------  -------------

Interest Income                                     (44,847)       (43,466)
Interest Expense                                    196,416         18,471
Provision for Income Taxes                              800         14,290
Non-Cash Loan Fee                                   259,865          1,918
Depreciation and Amortization                       887,031        613,166
Stock Option Expense                                302,144        101,142
Gain on Building Sale                               (87,955)       (87,956)
                                              -------------  -------------
EBITDA *                                      $   1,727,675  $     682,243
                                              =============  =============


                                              September 30,  September 30,
For the three months ended                        2007           2006
                                               (Unaudited)    (Unaudited)
                                              -------------  -------------
Net Income                                    $      57,806  $      21,457
                                              -------------  -------------

Interest Income                                     (13,868)        (2,714)
Interest Expense                                     63,104          7,842
Provision for Income Taxes                                -          5,055
Non-Cash Loan Fee                                    86,302          1,918
Depreciation and Amortization                       294,110        240,665
Stock Option Expense                                 90,040        (14,551)
Gain on Building Sale                               (29,319)       (29,319)
                                              -------------  -------------
EBITDA                                        $     548,175  $     230,353
                                              =============  =============

This release contains disclosure of EBITDA, which is a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Because not every company defines EBITDA in the same way, our EBITDA figures may not be fully comparable to those reported by other companies. We define EBITDA as net income before interest, taxes, depreciation, amortization, stock option expense, non-cash loan fees and gain on our 2003 building sale. The Company believes that EBITDA provides an important additional perspective on its operating results, its ability to service its long-term obligations, its ability to fund continuing growth, and its ability to continue as a going concern. The Company's Board and management regularly evaluate its progress based on EBITDA. The Company believes that EBITDA, while providing useful information, should not be considered in isolation or as an alternative to other financial measures determined under GAAP, such as net income or loss (as an indicator of operating performance) or cash flow (as a measure of liquidity).

About SpaceDev

SpaceDev, Inc. is a space technology/aerospace company that creates and sells affordable and innovative space products and mission solutions. For more information, visit www.spacedev.com.

Except for factual statements made herein, this news release consists of forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. Words such as "believe," "intends," "expects," "plans," "anticipates" and variations thereof, identify forward-looking statements, although their absence does not mean that a statement is not forward looking. Forward-looking statements are based on the Company's current expectations, and are not guarantees of performance. The Company's actual results could differ materially from its current expectations. Factors that could contribute to such differences include risks and uncertainties associated with the Company's ability to effectively manage schedule changes or cancellation of customer orders, control costs and expenses, and obtain additional financing, if needed. Reference is also made to other factors described in the Company's periodic reports filed with the SEC, including the Company's most current Annual Report on Form 10-KSB and subsequent Quarterly Reports on Form 10-QSB. These forward-looking statements speak only as of the date of this release. SpaceDev does not intend to update these forward-looking statements.

                                                            SpaceDev, Inc.
                                                          and Subsidiaries

                                               Consolidated Balance Sheets


                                                 (Unaudited)
                                                September 30, December 31,
                                                    2007          2006
                                                ------------  ------------

Assets

Current Assets
  Cash                                          $  5,092,312  $  1,438,146
  Accounts receivable                              7,065,771     7,289,720
  Inventory                                        1,067,530       309,205
  Other current assets                             1,045,619       599,565
                                                ------------  ------------
Total Current Assets                              14,271,232     9,636,636

Fixed Assets - Net                                 4,447,478     3,793,365

Intangible Assets                                    745,934       841,133

Goodwill                                          11,233,665    11,233,665

Other Assets                                       1,051,309       626,086
                                                ------------  ------------

                                                ------------  ------------
Total Assets                                    $ 31,749,618  $ 26,130,885
                                                ============  ============

Liabilities and Stockholders' Equity

Current Liabilities
  Accounts payable and accrued expenses         $  1,636,777  $  1,755,985
  Current portion of notes payable                    61,033             -
  Current portion of capitalized lease
   obligations                                        75,690        35,441
  Accrued payroll, vacation and related taxes      1,290,631     1,184,457
  Billings in excess of costs and deferred
  revenue                                          2,046,245     2,816,072
  Revolving line of credit                         2,789,574       805,172
  Other accrued liabilities                        1,375,270     1,602,561
                                                ------------  ------------

Total Current Liabilities                          9,275,220     8,199,688

Notes Payable, Less Current Maturities               161,373        50,193

Capitalized Lease Obligations, Less Current
 Maturities                                          260,634       136,709

Deferred Gain - Assets held for sale                 625,451       713,405

Other Long Term Liabilities                          459,126        15,266
                                                ------------  ------------
Total Liabilities                                 10,781,804     9,115,261

Commitments and Contingencies

Stockholders’ Equity
  Convertible preferred stock, $0.001 par
   value, 10,000,000 shares authorized, and
   252,104 and 252,963 shares issued and
   outstanding, respectively
  Series C Convertible preferred stock                   248           248
  Series D-1 Convertible preferred stock                   4             5
  Common stock, $0.0001 par value; 100,000,000
   shares authorized, and 37,360,085 and
   29,550,342 shares issued and outstanding,
   respectively                                        3,736         2,953
  Additional paid-in capital                      37,303,850    33,150,566
  Accumulated deficit                            (16,340,024)  (16,138,148)
                                                ------------  ------------
Total Stockholders’ Equity                        20,967,814    17,015,624
                                                ------------  ------------

Total Liabilities and Stockholders' Equity      $ 31,749,618  $ 26,130,885
                                                ============  ============

Please reference the Company's Form 10-QSB to access the notes which are
 an integral part of the consolidated financial statements.



                                                            SpaceDev, Inc.
                                                          and Subsidiaries

                                     Consolidated Statements of Operations
                                                               (Unaudited)

                                            Three Months Ended
 September 30,                      2007        %         2006        %
                                -----------  -------  -----------  -------

Net Sales                       $ 7,606,322    100.0% $ 7,006,347    100.0%

Total Cost of Sales*              5,402,113     71.0%   5,123,878     73.1%
                                -----------  -------  -----------  -------

Gross Margin                      2,204,209     29.0%   1,882,469     26.9%
                                -----------  -------  -----------  -------
Operating Expenses
  Marketing and sales               796,695     10.5%     524,701      7.5%
  Research and development          101,890      1.3%      70,754      1.0%
  General and administrative      1,141,599     15.0%   1,282,775     18.3%
                                -----------  -------  -----------  -------
Total Operating Expenses*         2,040,184     26.8%   1,878,230     26.8%
                                -----------  -------  -----------  -------
Income/(Loss) from Operations       164,025      2.2%       4,239      0.1%
                                -----------  -------  -----------  -------
Non-Operating Income/(Expense)
  Interest income                    13,868      0.2%       2,714      0.0%
  Interest and other expense        (63,104)    -0.8%      (7,842)    -0.1%
  Non-Cash loan fee                 (86,302)    -1.1%      (1,918)     0.0%
  Gain on building sale              29,319      0.4%      29,319      0.4%
                                -----------  -------  -----------  -------

Total Non-Operating Income/
 (Expense)                         (106,219)    -1.4%      22,273      0.3%
                                -----------  -------  -----------  -------
Income Before Taxes                  57,806      0.8%      26,512      0.4%

Income Tax Provision                      -      0.0%       5,055      0.1%
                                -----------  -------  -----------  -------
Net Income                      $    57,806      0.8% $    21,457      0.3%

Net Income                           57,806                21,457
  Less Dividends Declared          (133,462)             (150,842)

  Adjusted Net Income (Loss)
   for EPS Calculation              (75,656)             (129,385)

Net Income Per Share:           $     (0.00)          $     (0.00)
                                -----------  -------  -----------  -------
  Weighted-Average Shares
   Outstanding                   30,914,735            29,027,350

Fully Diluted Net Income Per
 Share:                         $     (0.00)          $     (0.00)
                                -----------  -------  -----------  -------
  Fully Diluted
   Weighted-Average Shares
   Outstanding                   30,914,735            29,027,350


* The following table shows how the Company's stock option expenses are
  allocated to all expenses. These non-cash stock option expenses are
  included in the unaudited operating results stated above.

  Cost of sales                 $    84,701           $    10,287
  Marketing and sales                25,536                   717
  Research and development                -                     -
  General and administrative        (20,197)              (25,555)
                                -----------  -------  -----------  -------
Total Non-Cash Stock Option
 Expense                        $    90,040           $   (14,551)
                                ===========  =======  ===========  =======



                                            Nine Months Ended
 September 30,                      2007        %         2006        %
                                -----------  -------  -----------  -------

Net Sales                       $25,310,938    100.0% $22,812,290    100.0%

Total Cost of Sales*             18,519,652     73.2%  16,718,917     73.3%
                                -----------  -------  -----------  -------

Gross Margin                      6,791,286     26.8%   6,093,373     26.7%
                                -----------  -------  -----------  -------
Operating Expenses
  Marketing and sales             2,189,571      8.7%   1,859,396      8.2%
  Research and development          265,045      1.0%     275,592      1.2%
  General and administrative      3,798,169     15.0%   3,990,450     17.5%
                                -----------  -------  -----------  -------

Total Operating Expenses*         6,252,785     24.7%   6,125,438     26.9%
                                -----------  -------  -----------  -------
Income/(Loss) from Operations       538,501      2.1%     (32,065)    -0.1%
                                -----------  -------  -----------  -------

Non-Operating Income/(Expense)
  Interest income                    44,847      0.2%      43,466      0.2%
  Interest and other expense       (196,417)    -0.8%     (18,471)    -0.1%
  Non-Cash loan fee                (259,865)    -1.0%      (1,918)     0.0%
  Gain on building sale              87,955      0.3%      87,956      0.4%
                                -----------  -------  -----------  -------

Total Non-Operating Income/
 (Expense)                         (323,480)    -1.3%     111,033      0.5%
                                -----------  -------  -----------  -------

Income Before Taxes                 215,021      0.8%      78,968      0.3%

Income Tax Provision                    800      0.0%      14,290      0.1%
                                -----------  -------  -----------  -------

Net Income                      $   214,221      0.8% $    64,678      0.3%

Net Income                          214,221                64,678
  Less Dividends Declared          (416,097)             (446,791)

   Adjusted Net Income (Loss)
    for EPS Calculation            (201,876)             (382,113)

Net Income Per Share:           $     (0.01)          $     (0.01)
                                -----------  -------  -----------  -------
  Weighted-Average Shares
   Outstanding                   30,044,852            28,419,751

Fully Diluted Net Income Per
 Share:                         $     (0.01)          $     (0.01)
                                -----------  -------  -----------  -------
  Fully Diluted
   Weighted-Average Shares
   Outstanding                   30,044,852            28,419,751


* The following table shows how the Company's stock option expense are
  allocated to all expenses. These non-cash stock option expenses are
  included in the unaudited operating results stated above.
  stated above.

  Cost of sales                 $   162,074           $    10,287
  Marketing and sales                58,864                   717
  Research and development                -                     -
  General and administrative         81,206                90,138
                                -----------  -------  -----------  -------
Total Non-Cash Stock Option
 Expense                        $   302,144           $   101,142
                                ===========  =======  ===========  =======


Please reference the Company's Form 10-QSB to access the notes which are
 an integral part of the consolidated financial statements.

Contact Information

  • SpaceDev Investor Relations
    Investor Contact:
    Richard Slansky/Jessica Schwarz
    Media Contact:
    Mark Sirangelo
    (858) 375-2026