SOURCE: SpaceDev, Inc.

May 09, 2008 19:31 ET

SpaceDev Reports First Quarter Fiscal 2008 Results

Quarterly Record Revenues With Positive Operating Income, Net Income and Adjusted EBITDA

POWAY, CA--(Marketwire - May 9, 2008) - SpaceDev, Inc. (OTCBB: SPDV) reported its financial results for the three months ended March 31, 2008 with revenue of over $10.3 million, an increase of over 14%, net income of approximately $57,000 and Adjusted EBITDA of over $490,000.

"We reached a new revenue milestone for SpaceDev this quarter with our first $10 million quarter, as we continue to build the Company with major new programs, while closing-out some of our legacy long-term fixed price development programs," said Mark N. Sirangelo, SpaceDev's Chairman and Chief Executive Officer. "We are successfully executing on our existing work, while remaining focused on building the foundation of an emerging mid-market aerospace company for our stockholders."

Revenue - SpaceDev reported revenue of approximately $10.3 million for the three months ended March 31, 2008, an increase of approximately $1.3 million, or 14%, from the approximate $9.1 million in revenue reported for the same period in 2007. Most of the revenue increase was due to the growth of non-government sector programs by approximately $2.0 million offset by a slight decline in government based contracts.

Income from Operations - SpaceDev realized income from operations of approximately $58,000 in the first quarter of 2008, which included approximately $99,500 for stock option expense, compared to an operating income of $221,000 for the same three months in 2007, which included approximately $105,000 for stock option expense.

Net Income; Adjusted EBITDA - Net income for the 2008 first quarter was approximately $57,000, compared to approximately $109,000 for the same period in 2007 with ($0.00) earnings per share for both quarters. During the first quarter of 2008, SpaceDev's Adjusted EBITDA was approximately $493,000, or 5% of net sales, compared to an adjusted EBITDA of $642,000, or 7% of net sales, for the same quarter in 2007.

Cash Position - At March 31, 2008, SpaceDev's cash position, which included cash reserves and cash available for investment, was approximately $4.7 million compared to approximately $6.5 million at December 31, 2007.

"A significant item of note in the quarter was our increased expenditure on small satellite related research and development activities," said Richard B. Slansky, SpaceDev's President and Chief Financial Officer. "During the first quarter of 2008, our R&D expense totaled $259,000 compared to only $39,000 during the same period in 2007. We will continue to invest prudently in internal R&D to strengthen our intellectual property portfolio in our key business areas for the future. Also, our cash position changed primarily due to a government contract modification delay; however, our accounts receivable increased by $3.1 million to $8.1 million at March 31, 2008 from $5.0 million at December 31, 2007."

First Quarter Conference Call Details

SpaceDev will host a conference call on Monday, May 12, 2008 at 11:00 a.m. EDT to discuss the quarter results. All those interested in hearing management's discussion are invited to join the call by dialing (866) 289-3234 and then entering PIN 8832 when prompted. A replay of the conference call will also be available for seven days through the investor relations section of SpaceDev's website, www.spacedev.com.

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. For more information on SpaceDev, please review the Company's filings on the SEC EDGAR system at www.sec.gov or at 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 integrate acquisitions; rescheduling or cancellation of customer orders; uncertainties in the government budgeting process; ability to control costs and expenses; and larger competitors' competitive advantages. 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. These forward-looking statements speak only as of the date of this release. SpaceDev does not undertake to update these forward-looking statements.

                                                            SpaceDev, Inc.
                                                          and Subsidiaries

                                               Consolidated Balance Sheets

                                                (Unaudited)    (Audited)
                                                  March 31,   December 31,
                                                    2008          2007
                                                ------------  ------------

Assets

Current Assets
    Cash                                        $  4,716,190  $  6,521,003
    Accounts receivable, net                       8,094,985     5,019,600
    Costs in excess of billings                    1,005,269     1,413,685
    Inventory                                      1,233,971     1,006,229
    Other current assets                             609,387       702,120
                                                ------------  ------------
Total Current Assets                              15,659,802    14,662,637

Fixed Assets - Net                                 4,232,047     4,420,020
Intangible Assets                                    698,564       746,392
Goodwill                                          11,233,665    11,233,665
Other Assets                                       1,031,669     1,045,272
                                                ------------  ------------
                                                ------------  ------------
Total Assets                                    $ 32,855,747  $ 32,107,986
                                                ============  ============

Liabilities and Stockholders' Equity
Current Liabilities
  Accounts payable and accrued expenses         $  2,124,511  $  1,491,116
  Current portion of notes payable and
   capitalized lease obligations                     142,132       162,885
  Accrued payroll, vacation and related taxes      1,151,273     1,424,462
  Billings in excess of costs                      3,104,941     2,463,366
  Other accrued liabilities                        1,580,483     1,632,768
                                                ------------  ------------
Total Current Liabilities                          8,103,340     7,174,597
Notes Payable and Capitalized Lease
 Obligations, Less Current Maturities                305,322       343,621
Deferred Gain - Assets held for sale                 566,815       596,133
Other Long Term Liabilities                          669,219       643,168
                                                ------------  ------------
Total Liabilities                                  9,644,696     8,757,519
Commitments and Contingencies
Stockholders’ Equity
  Convertible preferred stock, $0.001 par
   value, 10,000,000 shares authorized, and
   251,379 and 251,659 shares issued and
   outstanding, respectively
  Series C Convertible preferred stock                   248           248
  Series D-1 Convertible preferred stock                   3             3
  Common stock, $0.0001 par value;
   100,000,000 shares authorized, and
   42,517,192 and 42,306,871 shares issued and
   outstanding, respectively                           4,246         4,231
  Additional paid-in capital                      40,353,234    40,441,249
  Accumulated deficit                            (17,146,680)  (17,095,264)
                                                ------------  ------------
Total Stockholders’ Equity                        23,211,051    23,350,467
                                                ------------  ------------
                                                ------------  ------------
Total Liabilities and Stockholders' Equity      $ 32,855,747  $ 32,107,986
                                                ============  ============

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


                                                            SpaceDev, Inc.
                                                          and Subsidiaries

                                     Consolidated Statements of Operations

                                             Three Months Ended
 March 31,                            2008        %        2007        %
                                  ------------  -----  ------------  -----
                                  (Unaudited)          (Unaudited)

Net Sales                         $ 10,328,996  100.0% $  9,057,048  100.0%
Total Cost of Sales*                 7,963,147   77.1%    6,966,071   76.9%
                                  ------------  -----  ------------  -----

Gross Margin                         2,365,849   22.9%    2,090,977   23.1%
                                  ------------  -----  ------------  -----
Operating Expenses
  Marketing and sales                  640,500    6.2%      586,614    6.5%
  Research and development             258,549    2.5%       39,360    0.4%
  General and administrative         1,408,830   13.6%    1,243,555   13.7%
                                  ------------  -----  ------------  -----
Total Operating Expenses*            2,307,878   22.3%    1,869,529   20.6%
                                  ------------  -----  ------------  -----
Income from Operations                  57,971    0.6%      221,448    2.4%
                                  ------------  -----  ------------  -----
Non-Operating Income/(Expense)
  Interest and other income             37,583   -0.2%       20,956    0.2%
  Interest expense                     (17,979)   0.4%      (75,358)  -0.8%
  Gain on building sale                 29,317    0.3%       29,318    0.3%
  Loan fee                             (49,315)  -0.5%      (86,301)  -1.0%
                                  ------------  -----  ------------  -----
Total Non-Operating
 Income/(Expense)                         (394)   0.0%     (111,385)  -1.2%
                                  ------------  -----  ------------  -----
Income Before Taxes                     57,577    0.6%      110,063    1.2%
Income tax provision                       307    0.0%          800    0.0%
                                  ------------  -----  ------------  -----
Net Income                        $     57,270    0.6% $    109,263    1.2%
                                  ============  =====  ============  =====
Net Income                              57,270              109,263
    Less Preferred dividend
     payments                         (108,687)            (143,762)
    Net Loss Available to Common
     Stockholders                      (51,417)             (34,499)
Net Income Per Share:             $      (0.00)        $      (0.00)
                                  ------------  -----  ------------  -----
  Weighted-Average Shares
   Outstanding                      42,444,225           29,570,306
                                  ============  =====  ============  =====
Fully Diluted Net Income Per
 Share:                           $      (0.00)        $      (0.00)
                                  ------------  -----  ------------  -----
  Fully Diluted Weighted-Average
   Shares Outstanding               42,444,225           29,570,306

* The following table shows how the Company's stock option expense
  would be allocated to all expenses.

  Cost of sales                   $     68,767         $     41,373
  Marketing and sales                    8,351               13,652
  Research and development                   -                    -
  General and administrative            22,418               49,594
                                  ------------  -----  ------------  -----
Total Non-Cash Stock Option
 Expense                          $     99,536         $    104,619
                                  ============  =====  ============  =====

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

Non-GAAP Financial Measures and Adjusted EBITDA

Adjusted EBITDA is net income before interest, taxes, depreciation and amortization, loan fees on SpaceDev's revolving credit facility, stock option expense, and gain on the 2003 sale of SpaceDev's headquarters building in Poway, CA. Not every company calculates EBITDA or Adjusted EBITDA in the same way. The following table reconciles Adjusted EBITDA to net income for the three months ended March 31, 2008 and 2007:

                                                  March 31,     March 31,
For the three months ended                          2008          2007
                                                (Unaudited)   (Unaudited)
                                                ------------  ------------
Net Income                                      $     57,270  $    109,263
                                                ------------  ------------

Interest Income                                      (37,583)      (20,956)
Interest Expense                                      17,979        75,358
Provision for Income Taxes                               307           800
Depreciation and Amortization                        335,174       316,238
Loan Fees on Revolving Credit Facility                49,315        86,301
Stock Option Expense                                  99,536       104,619
Gain on Building Sale                                (29,317)      (29,318)
                                                ------------  ------------
Adjusted EBITDA                                 $    492,681  $    642,305
                                                ------------  ------------

This release contains disclosure of Adjusted EBITDA, which is a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The definition of Adjusted EBITDA used to calculate the Adjusted EBITDA figures presented above, while generally consistent with the most common definition of EBITDA used by investors and financial analysts, may not be comparable to similarly titled measures reported by other companies. SpaceDev believes that Adjusted 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. SpaceDev's management regularly evaluates its progress based on Adjusted EBITDA. SpaceDev believes that Adjusted 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 or cash flow.

Contact Information

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