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    Small-Cap Stock Spotlight: A123 Systems Inc. (AONE)

    Small-Cap Stock Spotlight: A123 Systems Inc. (AONE)

    Shares of battery technology company A123 System (NASDAQ: AONE) traded as much as 30.4% higher in Tuesday’s session, gaining 21.7% to $1.96 at the close.  The stock saw trading volume hit 4.02 million shares during the session, versus the 10-day average 3.38 million. It is currently below the 50-day and 200-day moving averages of $2.06 and $3.79, respectively.

    Based in Waltham, MA, A123 engages in the development and manufacture of advanced lithium-ion batteries and energy storage systems for transportation, electric grid and commercial applications. The company’s proprietary Nanophosphate technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density, increased safety and extended life.

    AONE shares were initially boosted late last month after the company said it will supply an 11 megawatt (MW) Grid Battery System (GBS) to Sempra Generation for the Auwahi Wind project in Maui, Hawaii. The advanced energy storage solution is designed to smooth variable wind power generation, which is expected to help maintain the stability to Maui’s electric grid.

    “We believe that wind-rich locations like Hawaii represent a significant opportunity for energy storage, especially as project developers and utilities continue to understand that storage has the capability to help maximize production and reduce the challenges associated with the variability of wind power generation,” Robert Johnson, vice president of the Energy Solutions Group at A123, commented in the release.

    “We consider Sempra Generation’s selection of our GBS energy storage solution for the Auwahi Wind project to be strong validation of our technology, and we look forward to showcasing the benefits of our energy storage systems for wind power integration when the Auwahi project is operational.”

    Additionally, A123’s Smart Grid Domain Controller will manage voltage regulation requirements for the project, leveraging the battery system and other assets including substation capacitor banks. When called upon, the storage solution will use A123’s proprietary Nanophosphate lithium ion batteries and built-in power electronics to deliver up to 11MW of power in milliseconds, providing Sempra Generation with a robust, turnkey solution for meeting energy requirements while helping to maintain grid stability.

    Following a third quarter that saw its net loss rise 46% to $63.7 million, A123 projected revenue to be in the range of $165 million to $180 million for the full year, down from its its previous forecast of $210 million to $225 million. However, that would still represent a 70% to 85% revenue growth from last year’s figure.

    Shares of AONE have gained 8.9% in the last five days, though the stock dropped 13.7% in the last month.  Year-to-date, the stock is down 80.1% year-to-date.

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