Needham & Company Reiterates a 'Hold' on A123 Systems (AONE); Near-term Revenue Ramp Not Likely To Be as Steep As Initially Expected

Needham & Company reiterates a 'Hold' on A123 Systems (NASDAQ: AONE).
Needham analyst says, "We are revising our outlook for A123 Systems. The company is moving forward with various initiatives. However, we do not expect
commercial revenues ramp to be as steep as initially expected. Reiterate Hold rating, as we recommend investors ‘wait on the sidelines’ until there is better visibility with ongoing efforts in transportation and grid...For 2011, we are forecasting revenues of $172.6 million (from $190 million) and operating loss of $1.64 (from $1.60) with gross margin of - 33.5%. However, our 2Q11 forecast is unchanged at 59% y/y revenue growth to $36.0 million with operating loss of $0.38 reflecting gross margin improvement to -45.0% (from -85.5% in 1Q11)."

For more ratings news on A123 Systems click here and for the rating history of A123 Systems click here.

Shares of A123 Systems closed at $5.68 yesterday.

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