Thursday, June 11, 2009

Spire, Gloria Solar cut joint venture

By Efrain Viscarolasaga

Bedford-based solar equipment maker Spire Corp. has reached an agreement with partner Gloria Solar Co. Ltd. of Taiwan to dissolve their joint venture, Gloria Spire Solar LLC, which performed photovoltaic systems integration in the U.S.

The joint venture was launched in 2007 and was based in Bedford. As a result of the dissolution, Spire (Nasdaq: SPIR) will re-establish the business as “Spire Solar Systems” which will continue to provide solar systems integration for the U.S. market. Spire Solar Systems will be located at Spire’s headquarters in Bedford and will be staffed by “several key employees from Gloria Solar Systems,” according to a company statement. Stephen Hogan, executive vice president and general manager of Spire Corp., will be appointed acting CEO of Spire Solar Systems.

According to the statement, the downturn in the photovoltaic market over the past few months caused executives to reassess their strategies and dissolve the joint venture. While details were not provided, the statement said the two companies will re-allocate the venture’s assets, including cash, after liabilities have been paid. Each company will also receive a share of project leads and will continue to support the existing client base.

Spire chairman and CEO Roger Little said in a statement that the new direction is expected to free the company to develop new opportunities in the U.S. systems market, which is being stimulated by federal funding. 

In 2008, Spire reported $68 million in revenue and turned a net income of $4.7 million, the first yearly profit for the company in more than three years.