Monday, August 11, 2008

Is Black and Decker pulling away from A123?

From Greentech Media's Greenlight blog:

The S-1. Such a troublesome document.

Unconfirmed rumors have swirled in recent weeks that Black & Decker, the large power tool maker, wasn’t happy with battery maker A123 Systems. Black & Decker is the largest customer for A123 and accounts for over half of the company’s revenue.

We called the company in July and A123 said that the relationship and contract with Black & Decker was still in place and that the tool maker was buying all the batteries “that we can supply.”

We have no reason to doubt it and the contract with Black & Decker is clearly still in place. But information about the company’s revenue contained in A123’s filing with the SEC that may give some people reason to ponder if something is going on between the two companies. On page 57 of the S-1, A123 says that demand has declined from its “most significant customer.” An increase in revenue in the first quarter of 2008 to $10.3 million from $8.1 million in the first quarter of 2007 was due to the acquisition. See below:...MORE