A123 Systems Tumbles After Stock Offering, Narrowing of Q1 Guidance

Shares of battery maker A123 Systems (AONE) sank 11 percent to $7.01 and fell to $6.81 earlier, after the company disclosed in an 8-K SEC filing last night that it expects its Q1 revenue to come in at $16 million – $18 million, at the lower end of the previously stated range of upper teens to low $20 million range set out on the co.’s Q4 2010 earnings conference call on February 28, 2011.

However, A123 reiterated that it expects to have Q2 2011 revenue in the range of $210 million to $225 million, versus the consensus estimate of $211 million. Meanwhile, A123 added that it would issue 18 million additional shares of its common stock and $125 million convertible subordinated notes due fiscal 2016. Deutsche Bank Securities (DB) and Goldman Sachs (GS) are acting as joint bookrunning managers.

Shares of A123 are currently down 12% to $6.88 on above average volume. Approximately 3 million shares have traded hands today vs. average 30-day volume of 1.4 million shares.

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About Ron Haruni 1068 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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