Aspen Aerogels stock fell nearly 30 percent in early trading on Friday following an announcement of declining revenue, mounting losses and a decision to put a manufacturing expansion on hold.
The Northborough insulation manufacturer’s stock had been on a steady climb since June on the back of partnership and federal funding announcements, growing its stock by over 64 percent since a June 17 low. However, much of those gains have been erased as the company’s stock fell to $4.15 a share in early trading following a late earnings announcement Thursday.
Those numbers were a six percent year-over-year decline in total revenue for the quarter to $29.6 million and a net loss of $3.1 million for the quarter, up from $2.5 million in the third quarter of 2015. Net loss per share for the quarter was $0.13 compared to a net loss of $0.11 in the third quarter of 2015.
These figures represent an “anticipated weakness in the upstream energy market,” according to a statement from Don Young, President and CEO of Aspen Aerogels.
As a result of anticipated weakness in the energy market, the company will be “challenged to maintain our business levels” and therefore is delaying a Statesboro, Georgia manufacturing expansion and its related financing, according to Young.
Bright spots for the company include an increase of gross profit by 24 percent year-over-year to $6.4 million for the quarter as well as a growth in the Asian market.
As a result of the third quarter financials and the future outlook on the market, Aspen Aerogels increased its projected losses for the year to between $9.4 million and $10.6 million, up from a previously anticipated loss of $6.8 million to $8.6 million.
