RedChip Press: SpaceDev Reports Year-End 2007 Results

Friday March 28, 1:17 pm ET

Revenue Increases With Improved Gross Margins, Operating Income, Net Loss and Adjusted EBITDA

POWAY, CA--(MARKET WIRE)--Mar 28, 2008 -- SpaceDev, Inc. (OTC BB: SPDV.OB) reported its financial results for the year ending December 31, 2007 with revenue of $34.7 million, an increase of over $2 million from 2006. Gross Margin increased to over 25% of net sales, a gain of over 4 percentage points, and Income from Operations improved by over $1 million. Net loss was reduced by $700,000. The Company also experienced Adjusted EBITDA for the year of approximately $1.8 million, an increase of over $1.6 million from 2006.

"SpaceDev continued to show operational and financial progress in 2007," said Mark N. Sirangelo, SpaceDev's Chairman and Chief Executive Officer. "We are remaining focused on building an integrated mid-market aerospace company. Despite unexpected conditions, such as the firestorms in San Diego last year that challenged us, we are progressing well as a company."

The Company's primary financial information is shown below. The discussion of the Company's financial results should be read in conjunction with the Company's Form 10-KSB filed with the Securities and Exchange Commission.

SpaceDev reported net sales of $34.7 million for the year ended December 31, 2007, an increase of $2.1 million, or 6%, from the $32.6 million in net sales reported for 2006.

The Company realized a Gross Margin of approximately $8.8 million, or 25.4% of net sales, for 2007, compared to a Gross Margin of $6.8 million, or 21.0% of net sales, in 2006, an increase of $2 million, or 4.4 percentage points. SpaceDev also realized Income from Operations of $116,000 in 2007, compared to an Operating Loss of $974,000 for 2006, a positive change of approximately $1.1 million. Net Loss for the year ended December 31, 2007 was ($273,000), or ($0.03) per common share, compared to a Net Loss of ($973,000), or ($0.06) per common share, for the same period in 2006, an increase of $0.03 per share. For 2007, the Company's Adjusted EBITDA (see explanation note below) increased to $1.8 million compared to an Adjusted EBITDA of $142,000 for the same period in 2006, an increase of $1.6 million.

Cash reserves and cash available for investment increased to $6.5 million at December 31, 2007, compared to $1.4 million at December 31, 2006. Cash plus accounts receivable increased from $8.7 million at December 31, 2006 to $13.0 million at December 31, 2007, an increase of over $4.2 million. The working capital ratio at December 31, 2007 was 2.0 compared to 1.2 at December 31, 2006.

Year-End Conference Call Details

SpaceDev will host a conference call on March 31, 2008 at 11:30 a.m. EDT to discuss the year-end results. All those interested in hearing management's discussion are invited to join the call by dialing (866) 289-3234 and entering the PIN 8832 when prompted. A replay of the conference call will be available for seven days through the Investors section of SpaceDev's web site, www.spacedev.com.

For more information on SpaceDev, please review the Company's filings on the SEC's website at www.sec.gov or at www.spacedev.com.

About SpaceDev

SpaceDev, Inc. is a space technology/aerospace company that creates and sells affordable and innovative space products and mission solutions. For more information, visit www.spacedev.com.

Except for factual statements made herein, this news release consists of forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. Words such as "believe," "intends," "expects," "plans," "anticipates" and variations thereof, identify forward-looking statements, although their absence does not mean that a statement is not forward looking. Forward-looking statements are based on the Company's current expectations, and are not guarantees of performance. The Company's actual results could differ materially from its current expectations. Factors that could contribute to such differences include risks and uncertainties associated with: the Company's ability to effectively integrate acquisitions; rescheduling or cancellation of customer orders; uncertainties in the government budgeting process; ability to control costs and expenses; and larger competitors' competitive advantages. Reference is also made to other factors described in the Company's periodic reports filed with the SEC, including the Company's most current Annual Report on Form 10-KSB. These forward-looking statements speak only as of the date of this release. SpaceDev does not intend to update these forward-looking statements.

Non-GAAP Financial Measures and Adjusted EBITDA

This release contains disclosure of Adjusted EBITDA, which is a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The definition of Adjusted EBITDA used to calculate the Adjusted EBITDA figures presented above, while generally consistent with the most common definition used by investors and financial analysts, may not be comparable to similarly titled measures reported by other companies. The Company believes that Adjusted EBITDA provides an important additional perspective on its operating results, its ability to service its long-term obligations, its ability to fund continuing growth, and its ability to continue as a going concern. The Company's management regularly evaluates its progress based on Adjusted EBITDA. The Company believes that Adjusted EBITDA, while providing useful information, should not be considered in isolation or as an alternative to other financial measures determined under GAAP, such as net income or loss (as an indicator of operating performance).

Adjusted EBITDA was approximately $1.8 million, or 5.1% of revenue, compared to an Adjusted EBITDA of approximately $142,000, or 0.4% of revenue, for 2006. Adjusted EBITDA is net income before interest, taxes, depreciation, amortization, loan fees on our revolving credit facility, stock option expense, and gain on the 2003 sale of SpaceDev's headquarters building in Poway, CA. Not every company calculates Adjusted EBITDA in the same way.

The following table reconciles Adjusted EBITDA to net loss for the years ended December 31, 2007 and 2006: