Lightbridge Corporation Reports 2011 First Quarter Results

TYSONS CORNER, Va., May 11, 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 first quarter ended March 31, 2011.  

Revenue for the first quarter ended March 31, 2011 was $1.6 million, compared to $2.4 million for the first quarter of 2010.  Operating loss for the three months ended March 31, 2011 was $1.7 million, compared to an operating loss of $1.7 million in the comparable period a year ago. While the Company's customer base has significantly increased, the phased approach of its work on nuclear consulting projects resulted in a year-over-year revenue decline.  General and administrative costs decreased by $0.7 million, or 29%, reflecting lower overhead expense.  The Company's operating revenues are derived primarily from its 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 all-metal and thorium nuclear fuel design technologies. Revenues are primarily generated from contracts in place with government entities in the United Arab Emirates, the State of Kuwait and the Gulf Cooperation Council (GCC).  The GCC is a political and economic union that comprises the Gulf States of the Kingdom of Bahrain, State of Kuwait, Sultanate of Oman, State of Qatar, Kingdom of Saudi Arabia and United Arab Emirates.

"On the fuel technology front, we have been making steady progress over the past quarter executing our fuel development plan and remain poised to bring our next generation, all-metal and thorium-based fuel technologies to commercialization as development timelines remain on track," said Seth Grae, President and CEO of Lightbridge.  "In April, we signed a memorandum of understanding with the Research Institute of Atomic Reactors in Dimitrovgrad, Russia where the MIR research reactor is located and where our fuel will be tested under prototypic PWR operating conditions.  Also, the thermal-hydraulic and vibration testing on our VVER seed and blanket fuel assembly mockup is currently underway and is expected to be completed in the next quarter.  The results of this testing will be submitted for publication in a peer-reviewed journal.  Further, Idaho National Laboratory is in the process of completing a comprehensive independent analysis of the Lightbridge thorium-based seed and blanket technology.  The results of the study will be submitted to the US Department of Energy.  We will provide an update when the report is made publicly available by DOE.  We also continue to expand our patent portfolio and have filed new patent applications over the past quarter covering our all-uranium seed and blanket fuel technology for power uprates and longer fuel cycles."  

Mr. Grae added, "The events at Fukushima underscore the continued emphasis on nuclear plant contingency planning that takes into account all possible worst-case scenarios.  Lightbridge fuel designs contribute to increased levels of nuclear safety by operating at lower temperatures and by utilizing metallurgically-bonded cladding.  Lower fuel temperature is a key advantage if an upset condition within the reactor were to occur. Furthermore, metallurgically-bonded cladding prevents release of large quantities of radioactive fission products into the coolant in case of a cladding breach. Complementing the increased levels of nuclear safety, Lightbridge fuel designs provide significantly improved economics to existing and new nuclear plants, generating increased power outputs from 10 to 30 percent and longer operating cycles."

Mr. Grae concluded, "We will continue to pursue a commercialization strategy targeted at generating interest in our nuclear fuel designs from major nuclear fuel fabricators and utilities.  In addition, our consulting business continues to make important strides with the unique perspective of delivering value adding services to countries that are most likely poised for new civil nuclear projects.  The significant expansion in Lightbridge's customer base underscores the worldwide recognition for the Company's nuclear services expertise."

Balance Sheet Overview

As of March 31, 2011, the Company had approximately $11.5 million in cash and cash equivalents and marketable securities, and approximately $11.3 million of working capital, with no long term debt.  Stockholders' equity was $11.9 million on March 31, 2011 compared with $13.1 million on December 31, 2010. The total number of common shares outstanding as of March 31, 2011 is 12,360,516.

2011 First Quarter Conference Call

Lightbridge will host a conference call on Wednesday, May 11 at 10 a.m. EDT to discuss the Company's 2011 first quarter 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 Tysons Corner, 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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2011.  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