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Spire Corporation Reports Second-Quarter 2011 Results

Revenues from continuing operations for the first six months ended June 30, 2011 were $33.1 million, a 20% decrease from $41.2 million for the same six month period in 2010. Net loss for the six months ended June 30, 2011 was $1.3 million, or $(0.16) per share, compared to net income of $707 thousand, or $0.09 per share, for the same period in 2010. These results include net income of $1.5 million, or $0.18 per share, for the six month period ended June 30, 2010 from the Company's Medical Products Business Unit which has been classified as discontinued operations.

Gross margin for the second-quarter ended June 30, 2011 was $5.2 million or 35% of revenue, compared to $3.7 million, or 16% for the second-quarter of 2010, representing an increase of $1.5 million, or 41% on a year-over-year basis.

Net cash used in operating activities of continuing operations was $0.5 million for the six months ended June 30, 2011, compared to net cash used in operating activities of $1.9 million for the same period in 2010, an improvement of $1.4 million. As of June 30, 2011, the Company had unrestricted cash and cash equivalents of $5.3 million.

Roger G. Little, Chairman and CEO, said, "We are encouraged by our operating performance for the second-quarter of fiscal year 2011. The Company's strategic focus on its core business lines, with an emphasis on its metrology suite, generated operating income for the three month period ended June 30, 2011. Through continued investments in the sales and marketing area, along with productivity advances, the Company recognized revenue on over 50 individual units of solar equipment during the quarter. This historic volume improved gross margins based on the favorable product mix when compared to the same quarter in fiscal year 2010."

Mr. Little went on to say, "We are positioned to drive future earnings through top-line growth related to our capital equipment for the PV solar industry, augmented by opportunities for our EPC integration services. We have continued confidence that our current portfolio of solar equipment, along with new equipment currently under design, will enable us to pursue strategies to capitalize on these opportunities. We will also look to take further advantage of our manufacturing capabilities, in order to improve the lead times of our equipment, increase our speed to market, and significantly reduce costs."

Conference Call Information

Spire Corporation will host a conference call on Thursday, August 4, 2011 at 4:30 p.m. (EDT). On the call, Spire Corporation's Chairman and CEO, Roger G. Little and Chief Financial Officer and Treasurer, Robert S. Lieberman, will discuss Spire's second-quarter 2011 financial results, as well as the Company's business outlook and growth strategy.

During the call, the Company may answer questions concerning business and financial developments, trends, and other business and financial matters. The Company's responses to these questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.

Those who wish to listen to the conference call should visit the Investors section of the Company's website, www.SpireCorp.com. The live call can also be accessed by dialing 866.831.5605; international callers may use +1 617.213.8851. The passcode for all participants is 700 181 73. If you are unable to listen live, the call will be archived on the Company's website.

About Spire Corporation

Spire Corporation is a global solar company providing capital equipment and turn-key production lines to manufacture PV modules. To learn more about Spire Corporation, visit www.SpireCorp.com or email PR@SpireCorp.com.

Certain matters described in this press release including those relating to Spire's prospects for growth constitute forward-looking statements under the federal securities laws. The discussion of forward-looking information requires management of the Company to make certain estimates and assumptions regarding the Company's strategic duration and the effect of such plans on the Company's financial results. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risk of dependence on market growth, competition and dependence on government agencies and other third parties for funding contract research and services, as well as other factors described in the Company's Form 10-K and other periodic reports filed with the Securities and Exchange Commission. Forward-looking statements contained in the press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The Company undertakes no obligation and expressly disclaims any duty to update such statements.

Spire Corporation
Robert S. Lieberman, 781-275-6000
Chief Financial Officer & Treasurer