SOURCE: SpaceDev, Inc.

August 14, 2008 15:51 ET

SpaceDev Reports Second Quarter Fiscal 2008 Results

Revenues Increased Over 8.5% With Operating Income, Net Income and Positive Adjusted EBITDA

POWAY, CA--(Marketwire - August 14, 2008) - SpaceDev, Inc. (OTCBB: SPDV) reported its financial results for the three and six months ended June 30, 2008 with year to date revenues of over $19 million, an increase of over 8.5%, net income for the six months of over $200,000 and Adjusted EBITDA of approximately $1.2 million for the same six month period.

"We continue to achieve new revenue milestones for SpaceDev with over $19.2 million for the six month period, as we build the Company with major new and exciting programs," said Mark N. Sirangelo, SpaceDev's Chairman and Chief Executive Officer. "We are successfully executing on our existing work, and continue to remain focused on building the foundation of an emerging mid-market aerospace company for our stockholders."

Revenue -- SpaceDev reported revenue of approximately $8.9 million and $19.2 million for the three and six months ended June 30, 2008, respectively, an increase of approximately $0.2 million and $1.5 million, or 2.8% and 8.6% from the approximate $8.6 million and $17.7 million in revenue reported for the same three and six month periods in 2007.

Income from Operations -- SpaceDev realized income from operations of approximately $180,000 and $238,000 in the three and six months ended June 30, 2008, which included approximately $157,000 and $256,000 for stock option expense, compared to an operating income of $153,000 and $374,000 for the same three and six months in 2007, which included approximately $107,000 and $212,000 for stock option expense. In addition, the Company increased its investment in R&D by almost 300%, investing over $453,000 in 2008 compared to $163,000 in 2007.

Net Income; Adjusted EBITDA -- Net income for the three and six months ended June 30, 2008 was approximately $147,000 and $205,000, respectively, compared to approximately $47,000 and $156,000 for the same three and six month periods in 2007 with $0.00 earnings per share for both quarters. During the three and six months ended June 30, 2008, SpaceDev's Adjusted EBITDA was approximately $0.7 million, or 7.6% of net sales, and $1.2 million or 6.1% of net sales, respectively, compared to an adjusted EBITDA of $0.5 million, or 6.2% of net sales, and $1.2 million, or 6.7% of net sales, for the same three and six months in 2007.

Cash Position -- At June 30, 2008, SpaceDev's cash position, which included cash reserves and cash available for investment, was approximately $5.5 million, compared to approximately $6.5 million at December 31, 2007. The change is primarily due to the pay down of current liabilities by almost $1 million and the accelerated repurchase of preferred stock of $825,000. The Company's current ratio improved to a factor of 2.16 from 2.04.

"We continue to reinvest in our internal growth with our increased expenditure on small satellite related research and development activities, as well as our enhanced dual-axis pointing mechanism project," said Richard B. Slansky, SpaceDev's President and Chief Financial Officer. "We will continue to invest prudently in internal R&D to strengthen our intellectual property portfolio in our key business areas for the future."

Second Quarter Conference Call Details

SpaceDev will host a conference call on Monday, August 18, 2008 at 11:30 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)
                                                  June 30,    December 31,
                                                    2008          2007
                                                ------------  ------------

 Assets

 Current Assets
   Cash                                         $  5,457,882  $  6,521,003
   Accounts receivable, net                        5,038,167     5,019,600
   Costs in excess of billings                     1,171,855     1,413,685
   Inventory                                       1,230,958     1,006,229
   Other current assets                              521,118       702,120
                                                ------------  ------------
 Total Current Assets                             13,419,980    14,662,637

 Fixed Assets - Net                                4,537,298     4,420,020

 Intangible Assets                                   680,088       746,392

 Goodwill                                         11,233,665    11,233,665

 Other Assets                                      1,039,134     1,045,272
                                                ------------  ------------

                                                ------------  ------------
 Total Assets                                   $ 30,910,165  $ 32,107,986
                                                ============  ============

 Liabilities and Stockholders' Equity

 Current Liabilities
    Accounts payable and accrued expenses       $    671,031  $  1,491,116
    Current portion of notes payable and
     capitalized lease obligations                   158,176       162,885
    Accrued payroll, vacation and related taxes    1,537,230     1,424,462
    Billings in excess of costs                    2,135,076     2,463,366
    Other accrued liabilities                      1,721,691     1,632,768
                                                ------------  ------------

 Total Current Liabilities                         6,223,204     7,174,597

 Notes Payable and Capitalized Lease
  Obligations, Less Current Maturities               578,797       343,621

 Deferred Gain - Assets held for sale                537,497       596,133

 Other Long Term Liabilities                         683,651       643,168

                                                ------------  ------------

 Total Liabilities                                 8,023,149     8,757,519

 Commitments and Contingencies

 Stockholders' Equity
    Convertible preferred stock, $0.001 par
     value, 10,000,000 shares authorized, and
     250,835 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
     42,528,630 and 42,306,871 shares issued
     and outstanding, respectively                     4,247         4,231
    Additional paid-in capital                    39,968,281    40,441,249
    Accumulated deficit                          (17,085,763)  (17,095,264)
                                                ------------  ------------

 Total Stockholders' Equity                       22,887,016    23,350,467
                                                ------------  ------------

                                                ------------  ------------
 Total Liabilities and Stockholders' Equity     $ 30,910,165  $ 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
 June 30,                             2008       %       2007       %
                                   ----------  -----  ----------  -----

 Net Sales                         $8,890,370  100.0% $8,647,568  100.0%

 Total Cost of Sales*               6,796,559   76.4%  6,151,468   71.1%
                                   ----------  -----  ----------  -----

 Gross Margin                       2,093,811   23.6%  2,496,100   28.9%
                                   ----------  -----  ----------  -----
 Operating Expenses

  Marketing and sales                 819,306    9.2%    806,262    9.3%
  Research and development            194,918    2.2%    123,795    1.4%
  General and administrative          899,463   10.1%  1,413,015   16.3%
                                   ----------  -----  ----------  -----

 Total Operating Expenses*          1,913,687   21.5%  2,343,072   27.1%
                                   ----------  -----  ----------  -----

 Income from Operations               180,124    2.0%    153,028    1.8%
                                   ----------  -----  ----------  -----

 Non-Operating Income/(Expense)
  Interest and other income            23,188    0.3%     10,023    0.1%
  Interest and other expense          (24,532)  -0.3%    (57,956)  -0.7%
  Gain on building sale                29,318   -0.6%     29,318    0.3%
  Loan fee                            (49,863)   0.3%    (87,261)  -1.0%
                                   ----------  -----  ----------  -----

 Total Non-Operating
  Income/(Expense)                    (21,889)  -0.2%   (105,876)  -1.2%
                                   ----------  -----  ----------  -----

 Income Before Taxes                  158,235    1.8%     47,152    0.5%

 Income tax provision                 (10,909)  -0.1%          -    0.0%
                                   ----------  -----  ----------  -----

 Net Income                        $  147,326    1.7% $   47,152    0.5%
                                   ==========  =====  ==========  =====

 Net Income                           147,326             47,152
     Less Preferred dividend
      payments                        (86,411)          (138,866)

     Net Income (Loss) Available to
      Common Stockholders              60,915            (91,714)

 Net Income Per Share:             $     0.00         $     0.00
                                   ----------  -----  ----------  -----

  Weighted-Average Shares
   Outstanding                     42,523,341         29,643,246

 Fully Diluted Net Income (Loss)
  Per Share:                       $     0.00         $     0.00
                                   ----------  -----  ----------  -----

  Fully Diluted Weighted-Average
   Shares Outstanding              43,002,233         29,643,246
                                   ==========  =====  ==========  =====


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

  Cost of sales                    $   60,744         $   35,999
  Marketing and sales                   3,707             19,676
  Research and development                  -                  -
  General and administrative           92,441             51,810
                                   ----------  -----  ----------  -----
 Total Non-Cash Stock Option
  Expense                          $  156,892         $  107,484
                                   ==========  =====  ==========  =====




                                               Six Months Ended
 June 30,                               2008       %        2007       %
                                    -----------  -----  -----------  -----

 Net Sales                          $19,219,365  100.0% $17,704,616  100.0%

 Total Cost of Sales*                14,759,704   76.8%  13,117,539   74.1%
                                    -----------  -----  -----------  -----

 Gross Margin                         4,459,661   23.2%   4,587,077   25.9%
                                    -----------  -----  -----------  -----
 Operating Expenses

  Marketing and sales                 1,459,805    7.6%   1,392,876    7.9%
  Research and development              453,467    2.4%     163,155    0.9%
  General and administrative          2,308,293   12.0%   2,656,570   15.0%
                                    -----------  -----  -----------  -----

 Total Operating Expenses*            4,221,565   22.0%   4,212,601   23.8%
                                    -----------  -----  -----------  -----

 Income from Operations                 238,096    1.2%     374,476    2.1%
                                    -----------  -----  -----------  -----

 Non-Operating Income/(Expense)
  Interest and other income              60,771    0.3%      30,979    0.2%
  Interest and other expense            (42,511)  -0.2%    (133,313)  -0.8%
  Gain on building sale                  58,635    0.3%      58,636    0.3%
  Loan fee                              (99,177)  -0.5%    (173,562)  -1.0%
                                    -----------  -----  -----------  -----

 Total Non-Operating
  Income/(Expense)                      (22,282)  -0.1%    (217,260)  -1.2%
                                    -----------  -----  -----------  -----

 Income Before Taxes                    215,814    1.1%     157,216    0.9%

 Income tax provision                   (11,216)  -0.1%        (800)   0.0%
                                    -----------  -----  -----------  -----

 Net Income                         $   204,598    1.1% $   156,416    0.9%
                                    ===========  =====  ===========  =====

 Net Income                             204,598             156,416
     Less Preferred dividend
      payments                         (195,098)           (282,633)

     Net Income (Loss) Available to
      Common Stockholders                 9,500            (126,217)

 Net Income Per Share:              $      0.00         $      0.00
                                    -----------  -----  -----------  -----

  Weighted-Average Shares
   Outstanding                       42,483,783          29,606,975

 Fully Diluted Net Income (Loss)
  Per Share:                        $      0.00         $      0.00
                                    -----------  -----  -----------  -----

  Fully Diluted Weighted-Average
   Shares Outstanding                43,572,369          29,606,975
                                    ===========  =====  ===========  =====

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

  Cost of sales                     $   129,511         $    77,372
  Marketing and sales                    12,058              33,328
  Research and development                    -                   -
  General and administrative            114,859             101,403
                                    -----------  -----  -----------  -----
 Total Non-Cash Stock Option
  Expense                           $   256,428         $   212,103
                                    ===========  =====  ===========  =====

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, California. Not every company calculates EBITDA or Adjusted EBITDA in the same way. The following table reconciles Adjusted EBITDA to net income for the six and three months ended June 30, 2008 and 2007:

                                                    June 30,     June 30,
For the three months ended                            2008         2007
                                                  (Unaudited)  (Unaudited)
                                                  -----------  -----------
Net Income                                        $   147,326  $    47,152
                                                  -----------  -----------
Interest Income                                       (23,188)     (10,023)
Interest Expense                                       24,532       57,956
Provision for Income Taxes                             10,909            -
Depreciation and Amortization                         340,536      276,678
Loan Fees on Revolving Credit Facility                 49,863       87,261
Stock Option Expense                                  156,892      107,484
Gain on Building Sale                                 (29,318)     (29,318)
                                                  -----------  -----------
Adjusted EBITDA                                   $   677,552  $   537,190
                                                  ===========  ===========




                                                    June 30,     June 30,
For the six months ended                              2008         2007
                                                  (Unaudited)  (Unaudited)
                                                  -----------  -----------
Net Income                                        $   204,598  $   156,416
                                                  -----------  -----------
Interest Income                                       (60,771)     (30,979)
Interest Expense                                       42,511      133,313
Provision for Income Taxes                             11,216          800
Depreciation and Amortization                         675,710      592,916
Loan Fees on Revolving Credit Facility                 99,177      173,562
Stock Option Expense                                  256,428      212,103
Gain on Building Sale                                 (58,635)     (58,636)
                                                  -----------  -----------
Adjusted EBITDA                                   $ 1,170,234  $ 1,179,495
                                                  ===========  ===========

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