Lightbridge Corporation Announces Fourth Quarter and Full Year 2010 Financial Results

MCLEAN, Va., Feb. 22, 2011 /PRNewswire/ -- Lightbridge Corporation (Nasdaq: LTBR), the leading innovator of advanced nuclear fuel designs and provider of nuclear energy consulting services to commercial and governmental organizations, today reported financial results for the fourth quarter and full year ended December 31, 2010.  

Revenue for the full year 2010 was $7.6 million, compared to $10.5 million for the full year 2009.  Revenue for the three months ended December 31, 2010 was $1.2 million compared to $2.1 million for the fourth quarter of 2009.  Operating loss for the year ended December 31, 2010 was $7.6 million compared to an operating loss of $7.2 million in the year ended December 31, 2009.  Operating loss for the three months ended December 31, 2010 was $2.2 million, compared to an operating loss of $2.1 million in the comparable year ago period.  

"We are very pleased with our progress over the past year," said Seth Grae, President and CEO of Lightbridge.  "Significant advancements were made in both of our business segments and we were able to use our depth of expertise to have meaningful discussions with countries around the world about their nuclear energy programs, which culminated in additional nuclear advisory assignments, while also continuing to develop our next generation fuel technology business.  We ended the year on a strong note by entering into a contract with the Gulf Corporation Council (GCC) Member States to help establish a blueprint for regional standards of nuclear power generation.  As with all of Lightbridge's consulting assignments, this contract draws on the significant nuclear experience of our Company.  Lightbridge has deep ties with the states in the Gulf region and we continue to work with them on many levels towards the development of a renewable energy platform that will meet the growing demands for energy in this part of the world while advancing their nuclear energy objectives."

Mr. Grae added, "At the same time, we made great strides in advancing our fuel technology business with the development of an all-metal fuel design for new-build reactors.  We expect this new design will be able to provide up to a 30% increase in power output and extend the fuel cycle length up to 24 months.  This is especially significant at a time when commercially viable fuel products are limited to conventional uranium oxide fuels, which are reaching the limits in terms of their capability to provide increased power output or longer fuel cycles."  

Mr. Grae concluded, "We believe that our nuclear fuel development project is the only commercially viable program that can provide increased power output and extend fuel cycles.  Given the long-term product development timelines, significant nuclear regulatory requirements, and our comprehensive patent portfolio, we believe that there are significant barriers to entry and we are in a unique situation in the market.  We are pursuing a commercialization strategy aimed at generating interest in our nuclear fuel designs from one or more major nuclear fuel fabricators that could lead to a technology licensing or team arrangement over the next three years to further conduct research and development activities."

Currently, the Company's operating revenues are derived primarily from the Company's consulting and strategic advisory services for foreign governments planning to create or expand electricity generation capabilities using nuclear power plants, and are used to help fund the continuing development of the Company's nuclear fuel design technology.  Revenues are primarily generated from the five-year consulting contracts in place in the United Arab Emirates ("UAE") with two separate entities, the Emirates Nuclear Energy Corporation ("ENEC") and the Federal Authority for Nuclear Regulation ("FANR").  

Balance Sheet Overview

As of December 31, 2010, the Company had approximately $2.4 million of cash and cash equivalents, $10.5 million in marketable securities and approximately $12.5 million of working capital, with no long term debt.  As of December 31, 2009, the Company had approximately $4.5 million of working capital.  The increase in working capital is primarily due to the $13.7 million common stock offering Lightbridge completed on July 28, 2010. Stockholders' equity was $13.1 million on December 31, 2010 compared with $5 million on December 31, 2009. The total number of common shares outstanding as of February 22, 2011 is 12,346,645.

2010 Year-End Conference Call

Lightbridge will host a conference call on Friday, February 25 at 11 a.m. EST to discuss the Company's 2010 year-end results and provide an update on recent corporate developments. Seth Grae, President and Chief Executive Officer, will lead the call and additional members of the senior management team will be available to answer questions.

Following the conclusion of the call, a recorded replay of the call can be accessed by visiting www.ltbridge.com.

About Lightbridge Corporation

Lightbridge is a U.S. nuclear energy company based in McLean, VA. with operations in Abu Dhabi, Moscow and London. The Company develops proprietary, proliferation resistant, next generation nuclear fuel technologies for current and future nuclear reactor systems. The Company also provides comprehensive advisory services for established and emerging nuclear programs based on a philosophy of transparency, non-proliferation, safety and operational excellence. Lightbridge's breakthrough fuel technology is establishing new global standards for safe and clean nuclear power and leading the way towards a sustainable energy future. Lightbridge consultants provide integrated strategic advice and expertise across a range of disciplines including regulatory affairs, nuclear reactor procurement and deployment, reactor and fuel technology and international relations. It leverages those broad and integrated capabilities by offering its services to commercial entities and governments with a need to establish or expand nuclear industry capabilities and infrastructure.

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Forward Looking Statement

This press release contains statements that are forward-looking in nature, including statements regarding the Company's competitive position and product and service offerings. These statements are based on current expectations on the date of this press release and involve a number of risks and uncertainties, which may cause actual results to differ significantly from such estimates. The risks include, but are not limited to, the degree of market adoption of the Company's product and service offerings; market competition; dependence on strategic partners; and the Company's ability to manage its business effectively in a rapidly evolving market. Certain of these and other risks are set forth in more detail in "Item 1A. Risk Factors" in Lightbridge's Annual report on Form 10-K for the fiscal year ended December 31, 2010. Lightbridge does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise.

SOURCE Lightbridge Corporation