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.

About Ron Haruni 1039 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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