SOURCE: SpaceDev, Inc.

August 13, 2007 16:27 ET

SpaceDev Reports Second Quarter and Six Month Fiscal 2007 Results

Six Month Revenue Increases 12%, Net Income Increases by $120K, EBITDA Increases 265%

POWAY, CA--(Marketwire - August 13, 2007) - SpaceDev, Inc. (OTCBB: SPDV) reported its financial results for the six and three months ended June 30, 2007 with revenue over $17.7 million and $8.6 million for the two periods, as well as net income over $156,000 and $47,000 for the six and three month periods ended June 30, 2007, respectively. The Company also experienced EBITDA for the six and three month periods of approximately $1.2 million and $537,000, respectively.

"We continue to show financial progress as we build our contract and customer base," said Mark N. Sirangelo, SpaceDev Chief Executive Officer and Chairman of the Board. "The Company is performing to its plan for the year, and while there is still much progress to make, we believe that we are positioning ourselves to take advantage of future opportunities in the mid-market aerospace industry for years to come."

The Company's primary financial information is shown below, comparing the first six months of 2007 with the first six months of 2006 and the three months ending June 30, 2007 with the three months ending June 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 $17.7 million for the six months ended June 30, 2007, an increase of approximately $1.9 million, or 12%, from the approximately $15.8 million in revenue reported for the same period in 2006. The Company reported revenue of approximately $8.6 million in each of the three months ended June 30, 2007 and 2006.

Income from Operations -- The Company realized income from operations of approximately $374,000 in the first six months of 2007, compared to an operating loss of $36,000 for the same six months in 2006. During the first six months of 2007, the Company's EBITDA increased to approximately $1.2 million, or 7% of net sales, compared to an EBITDA of $452,000, or 2% of net sales, for the same six months in 2006. SpaceDev also realized income from operations of approximately $153,000 in the second quarter 2007, compared to operating income of approximately $10,000 for the same three month period in 2006. During the three months ended June 30, 2007, the Company's EBITDA increased to approximately $537,000, or 6% of net sales, compared to an EBITDA of $260,000, or 3% of net sales, for the same three months in 2006.

Net Income -- Net income for the first six months of 2007 was approximately $156,000, compared to approximately $43,000 for the same six month period in 2006. Net income for the three months ended June 30, 2007 was approximately $47,000, compared to approximately $36,000 for the same three month period in 2006.

Cash Position -- At June 30, 2007, the Company's cash position, which included cash reserves and cash available for investment, was approximately $2.9 million compared to approximately $1.4 million at December 31, 2006, an increase of approximately $1.5 million.

Second Quarter Conference Call Details

As previously announced, SpaceDev will host a conference call on Tuesday, August 14, 2007 at 1:00 p.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.

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

    For the six months ending           June 30, 2007   June 30, 2006
                                         (Unaudited)     (Unaudited)
                                        -------------   -------------
    Net Income                          $     156,416   $      43,221
                                        -------------   -------------

    Interest Income                           (30,979)        (40,752)
    Interest Expense                          133,313          10,629
    Non-Cash Loan Fee                         173,562               -
    Provision for Income Taxes                    800           9,235
    Depreciation and Amortization             592,916         372,500
    Stock Option Expense                      212,103         115,693
    Gain on Building Sale                     (58,636)        (58,637)
                                        -------------   -------------
    EBITDA *                            $   1,179,495   $     451,889
                                        =============   =============

    For the three months ended          June 30, 2007   June 30, 2006
                                         (Unaudited)     (Unaudited)
                                        -------------   -------------
    Net Income                          $      47,152   $      36,203
                                        -------------   -------------

    Interest Income                           (10,023)         (7,137)
    Interest Expense                           57,955           5,346
    Non-Cash Loan Fee                          87,261               -
    Provision for Income Taxes                      -           5,000
    Depreciation and Amortization             276,678         225,130
    Stock Option Expense                      107,484          24,992
    Gain on Building Sale                     (29,318)        (29,318)
                                        -------------   -------------
    EBITDA                              $     537,190   $     260,216
                                        =============   =============

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 management regularly evaluates 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)
                                                  June 30,    December 31,
                                                    2007          2006
                                                ------------  ------------

 Assets

 Current Assets
   Cash                                         $  2,914,756  $  1,438,146
   Accounts receivable                             6,771,922     7,289,720
   Inventory                                         519,788       309,205
   Other current assets                              539,010       599,565
                                                ------------  ------------
 Total Current Assets                             10,745,476     9,636,636

 Fixed Assets - Net                                4,004,879     3,793,365

 Intangible Assets                                   769,620       841,133

 Goodwill                                         11,233,665    11,233,665

 Other Assets                                        745,916       626,086
                                                ------------  ------------
                                                ------------  ------------
 Total Assets                                   $ 27,499,556  $ 26,130,885
                                                ============  ============

 Liabilities and Stockholders' Equity

 Current Liabilities
    Accounts payable and accrued expenses       $  1,235,425  $  1,755,985
    Current portion of capitalized lease
     obligations                                      74,897        35,441
    Accrued payroll, vacation and related taxes      905,776     1,184,457
    Billings in excess of costs and deferred
     revenue                                       1,791,046     2,816,072
    Revolving line of credit                       3,037,950       805,172
    Other accrued liabilities                      2,594,130     1,602,561
                                                ------------  ------------
 Total Current Liabilities                         9,639,224     8,199,688

 Notes Payable, Less Current Maturities               55,997        50,193

 Capitalized Lease Obligations, Less Current
  Maturities                                         269,508       136,709

 Deferred Gain - Assets held for sale                654,769       713,405

 Other Long Term Liabilities                               -        15,266
                                                ------------  ------------

 Total Liabilities                                10,619,498     9,115,261

 Commitments and Contingencies

 Stockholders' Equity
    Convertible preferred stock, $.001 par
     value, 10,000,000 shares authorized,
     and 252,295 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, $.0001 par value; 100,000,000
     shares authorized, and 30,141,034 and
     29,550,342 shares issued and outstanding,
     respectively                                      3,014         2,953
    Additional paid-in capital                    33,141,157    33,150,566
    Accumulated deficit                          (16,264,365)  (16,138,148)
                                                ------------  ------------
 Total Stockholders' Equity                       16,880,058    17,015,624
                                                ------------  ------------
                                                ------------  ------------
 Total Liabilities and Stockholders' Equity     $ 27,499,556  $ 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
 June 30,                                 2007       %         2006       %
                                  ------------  -----  ------------  -----

 Net Sales                        $  8,647,568  100.0% $  8,631,165  100.0%

 Total Cost of Sales*                6,151,468   71.1%    6,329,932   73.3%
                                  ------------  -----  ------------  -----

 Gross Margin                        2,496,100   28.9%    2,301,233   26.7%
                                  ------------  -----  ------------  -----
 Operating Expenses
   Marketing and sales                 806,262    9.3%      691,136    8.0%
   Research and development            123,795    1.4%      123,062    1.4%
   General and administrative        1,413,015   16.3%    1,476,941   17.1%
                                  ------------  -----  ------------  -----
 Total Operating Expenses*           2,343,072   27.1%    2,291,139   26.5%
                                  ------------  -----  ------------  -----
 Income/(Loss) from Operations         153,028    1.8%       10,094    0.1%
                                  ------------  -----  ------------  -----
 Non-Operating Income/(Expense)
   Interest income                      10,023    0.1%        7,137    0.1%
   Interest and other expense          (57,955)  -0.7%       (5,346)  -0.1%
   Non-Cash loan fee                   (87,261)  -1.0%            -    0.0%
   Gain on building sale                29,318    0.3%       29,319    0.3%
                                  ------------  -----  ------------  -----

 Total Non-Operating
  Income/(Expense)                    (105,876)  -1.2%       31,110    0.4%
                                  ------------  -----  ------------  -----
 Income Before Taxes                    47,152    0.5%       41,204    0.5%

 Income Tax Provision                        -    0.0%        5,000    0.1%
                                  ------------  -----  ------------  -----
 Net Income                       $     47,152    0.5% $     36,204    0.4%

                                  ============  =====  ============  =====

 Net Income                             47,152               36,204

      Less Preferred Dividend
       Payments                       (138,866)             (98,774)

     Adjusted Net Income (Loss)
      for EPS Calculation              (91,714)             (62,570)

 Net Income Per Share:            $      (0.00)        $      (0.00)
                                  ------------  -----  ------------  -----
   Weighted-Average Shares
    Outstanding                     29,643,246           28,818,403

 Fully Diluted Net Income Per
  Share:                          $      (0.00)        $      (0.00)
                                  ------------  -----  ------------  -----
   Fully Diluted Weighted-Average
    Shares Outstanding              29,643,246           28,818,403



 * 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.

  Cost of sales                   $     35,999         $          -
  Marketing and sales                   19,676                    -
  Research and development                   -                    -
  General and administrative            51,810               24,992
                                  ------------  -----  ------------  -----
 Total Non-Cash Stock Option
  Expense                         $    107,484         $     24,992
                                  ============  =====  ============  =====


                                              Six Months Ended
 June 30,                                 2007       %         2006       %
                                  ------------  -----  ------------  -----

 Net Sales                        $ 17,704,616  100.0% $ 15,805,943  100.0%

 Total Cost of Sales*               13,117,539   74.1%   11,595,039   73.4%
                                  ------------  -----  ------------  -----

 Gross Margin                        4,587,077   25.9%    4,210,904   26.6%
                                  ------------  -----  ------------  -----
 Operating Expenses
   Marketing and sales               1,392,876    7.9%    1,334,695    8.4%
   Research and development            163,155    0.9%      204,839    1.3%
   General and administrative        2,656,570   15.0%    2,707,674   17.1%
                                  ------------  -----  ------------  -----
 Total Operating Expenses*           4,212,601   23.8%    4,247,208   26.9%
                                  ------------  -----  ------------  -----
 Income/(Loss) from Operations         374,476    2.1%      (36,304)  -0.2%
                                  ------------  -----  ------------  -----
 Non-Operating Income/(Expense)
   Interest income                      30,979    0.2%       40,752    0.3%
   Interest and other expense         (133,313)  -0.8%      (10,629)  -0.1%
   Non-Cash loan fee                  (173,562)  -1.0%            -    0.0%
   Gain on building sale                58,636    0.3%       58,637    0.4%
                                  ------------  -----  ------------  -----

 Total Non-Operating
  Income/(Expense)                    (217,261)  -1.2%       88,760    0.6%
                                  ------------  -----  ------------  -----
 Income Before Taxes                   157,216    0.9%       52,456    0.3%

 Income Tax Provision                     (800)   0.0%        9,235    0.1%
                                  ------------  -----  ------------  -----
 Net Income                       $    156,416    0.9% $     43,221    0.3%

                                  ============  =====  ============  =====

 Net Income                            156,416               43,221

      Less Preferred Dividend
       Payments                       (282,633)            (197,684)
     Adjusted Net Income (Loss)
      for EPS Calculation             (126,218)            (154,463)
 Net Income Per Share:            $      (0.00)        $      (0.01)
                                  ------------  -----  ------------  -----
   Weighted-Average Shares
    Outstanding                     29,606,975           28,818,403

 Fully Diluted Net Income Per
  Share:                          $      (0.00)        $      (0.01)
                                  ------------  -----  ------------  -----
   Fully Diluted Weighted-Average
    Shares Outstanding              29,606,975           28,818,403


* 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.

  Cost of sales                   $     77,372         $          -
  Marketing and sales                   33,328                    -
  Research and development                   -                    -
  General and administrative           101,403              115,693
                                  ------------  -----  ------------  -----
 Total Non-Cash Stock Option
  Expense                         $    212,103         $    115,693
                                  ============  =====  ============  =====

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