XML 23 R6.htm IDEA: XBRL DOCUMENT v2.3.0.15
Description of Business
9 Months Ended
Sep. 30, 2011
Description of the Business [Abstract] 
Nature of Operations [Text Block]
Description of the Business

Spire Corporation (“Spire” or the “Company”) develops, manufactures and markets highly-engineered products and services in three principal business areas: (i) capital equipment for the photovoltaic solar industry, (ii) biomedical and (iii) optoelectronics, generally bringing to bear expertise in materials technologies, surface science and thin films across all three business areas, discussed below.

In the photovoltaic solar area, the Company develops, manufactures and markets specialized equipment for the production of terrestrial photovoltaic modules from solar cells, provides photovoltaic systems for application to powering buildings with connection to the utility grid and supply photovoltaic materials. The Company’s equipment has been installed in approximately 200 factories in 50 countries. 

In the biomedical area, the Company provides value-added surface treatments to manufacturers of orthopedic and other medical devices that enhance the durability, antimicrobial characteristics or other material characteristics of their products; and performs sponsored research programs into practical applications of advanced biomedical and biophotonic technologies.

In the optoelectronics area, the Company provides custom compound semiconductor foundry and fabrication services on a merchant basis to customers involved in biomedical/biophotonic instruments, telecommunications and defense applications. Services include compound semiconductor wafer growth, other thin film processes and related device processing and fabrication services.  The Company also provides materials testing services and performs services in support of sponsored research into practical applications of optoelectronic technologies.

On December 14, 2009, the Company completed the sale of its medical products business unit, which develops and markets coated and uncoated hemodialysis catheters and related devices for the treatment of chronic kidney disease (the “Medical Products Business Unit”), to Bard Access Systems, Inc. (“Bard”).  Accordingly, the results and liabilities of the Medical Products Business Unit are being presented herein as discontinued operations. See Note 14 to the unaudited condensed consolidated financial statements.

Operating results will depend upon revenue growth and product mix, as well as the timing of shipments of higher priced products from the Company’s solar equipment line, delivery of solar systems and solar materials.  Export sales amounted to 67% and 57% of net sales and revenues for the three and nine months ended September 30, 2011, respectively. Export sales amounted to 30% and 37% of net sales and revenues for the three and nine months ended September 30, 2010, respectively.

The Company has incurred operating losses from continuing operations in 2011 and 2010.  Operating loss from continuing operations was $1.7 million and $3.0 million for the three and nine months ended September 30, 2011, respectively, and $1.1 million and $2.7 million for the three and nine months ended September 30, 2010, respectively.  Net cash used in operating activities was $3.6 million for the nine months ended September 30, 2011 and 2010. As of September 30, 2011, the Company had unrestricted cash and cash equivalents of $2.3 million compared to $6.3 million as of December 31, 2010.  The Company has numerous options on how to fund future operational losses or working capital needs, including but not limited to sales of equity, bank debt or the sale or license of assets and technology, as it has done in the past; however, there are no assurances that the Company will be able to sell equity, obtain or access bank debt, or sell or license assets or technology on a timely basis and at appropriate values.  The maturity date of the Company's credit facilities is December 31, 2011. The Company has developed several plans including cost containment efforts and outside financing to offset a decline in business due to global economic conditions.  As a result, the Company believes it has sufficient resources to finance its current operations through at least September 30, 2012.