Aspen Aerogels (NYSE: ASPN) reported Q2 EPS of ($0.06), $0.02 worse than the analyst estimate of ($0.04). Revenue for the quarter came in at $27.7 million versus the consensus estimate of $30.99 million.

GUIDANCE:

Aspen Aerogels sees FY2016 revenue of $117-125 million, versus the consensus of $122.1 million.

"We achieved solid improvement in gross profit, net loss and Adjusted EBITDA supported by output from our third production line, despite the previously anticipated weakness in the upstream market. Resurgent demand in the building materials market and strong growth in the Asian and North American energy markets helped offset the declines in demand in the subsea market and reduced shipments to the South Asian petrochemical project during the quarter," said Don Young, President and CEO of Aspen Aerogels.

"We made great progress during the quarter in our efforts to diversify our markets, to increase our capacity and to expand the reach of our technology. We signed an exclusive supply agreement and a joint development agreement with BASF initially focused on the building materials market. We completed third phase engineering designs for our planned Statesboro, Georgia, manufacturing facility and effectively financed a portion of the construction costs with the scheduled prepayments under our supply agreement with BASF. In addition, we commenced construction of the pilot line in our East Providence facility designed to support the creation of next generation products for both new and existing markets. We expect to complete the pilot line in the third quarter of this year," continued Mr. Young.

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