|        |
|--------|
|        |  |  |  |  |
|   |   |   |   |   |
|   |   |   |   |   |

|   |
|---|
|   |  |
| R | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |

|        |
|--------|
|        |  |
| £ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |

|                                                        |
|--------------------------------------------------------|
|                                                        |
| Spire Corporation                                      |
| (Exact name of registrant as specified in its charter) |

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |
| Massachusetts                                                  |   | 04-2457335 |
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification Number) |

|                                           |
|-------------------------------------------|
|                                           |  |  |
| One Patriots Park, Bedford, Massachusetts |   | 01730-2396 |
| (Address of principal executive offices)  |   | (Zip Code) |

|                                                           |
|-----------------------------------------------------------|
|                                                           |
| 781-275-6000                                              |
| (Registrant’s telephone number including area code) |

|                                     |
|-------------------------------------|
|                                     |  |  |  |
| Large accelerated filer £ | Accelerated filer  £ | Non-accelerated filer  £ | Smaller reporting company R |
|                                |   | (Do not check if a smaller reporting company) |   |

|        |
|--------|
|        |  |  |  |  |
|   |   |   |   |   |
|   |   |   |   |   |

----

|          |
|----------|
|          |  |  |
|     |   | Page |
| PART I.  | Financial Information |   |
|     |   |   |
| Item 1.  | Unaudited Condensed Consolidated Financial Statements: |   |
|     |   |   |
|     | Unaudited Condensed Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010 | 1 |
|     |   |   |
|     | Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2011 and 2010 | 2 |
|     |   |   |
|     | Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2011 and 2010 | 3 |
|     |   |   |
|     | Notes to Unaudited Condensed Consolidated Financial Statements | 4 |
|     |   |   |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 14 |
|     |   |   |
| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk | 21 |
|     |   |   |
| Item 4.  | Controls and Procedures | 21 |
|     |   |   |
| PART II. | Other Information |   |
|     |   |   |
| Item 1.  | Legal Proceedings | 22 |
|     |   |   |
| Item 1A. | Risk Factors | 22 |
|     |   |   |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds | 22 |
|     |   |   |
| Item 3.  | Defaults Upon Senior Securities | 22 |
|     |   |   |
| Item 5.  | Other Information | 22 |
|     |   |   |
| Item 6.  | Exhibits | 22 |
|     |   |   |
|     | Signatures | 23 |
|     |   |   |
|     | Exhibit Index | 24 |

----

|         |                                                       |
|---------|-------------------------------------------------------|
| Item 1. | Unaudited Condensed Consolidated Financial Statements |

|                                                                                                                                                                          |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                          |  |  |  |  |  |  |  |
|                                                                                                                                                                     | March 31, 2011 |   | December 31, 2010 |
| Assets                                                                                                                                                                   |   |   |   |
| Current assets                                                                                                                                                           |   |   |   |
| Cash and cash equivalents                                                                                                                                                | $ | 5,679 |   |   | $ | 6,259 |   |
| Restricted cash – current portion                                                                                                                                  | 21 |   |   | 21 |   |
|                                                                                                                                                                     | 5,700 |   |   | 6,280 |   |
|                                                                                                                                                                     |   |   |   |
| Accounts receivable – trade, net                                                                                                                                   | 6,197 |   |   | 7,324 |   |
| Inventories, net                                                                                                                                                         | 12,155 |   |   | 10,932 |   |
| Deferred cost of goods sold                                                                                                                                              | 674 |   |   | 1,018 |   |
| Deposits on equipment for inventory                                                                                                                                      | 89 |   |   | 88 |   |
| Prepaid expenses and other current assets                                                                                                                                | 1,042 |   |   | 809 |   |
| Total current assets                                                                                                                                                     | 25,857 |   |   | 26,451 |   |
|                                                                                                                                                                     |   |   |   |
| Property and equipment, net                                                                                                                                              | 4,280 |   |   | 4,588 |   |
| Intangible and other assets, net                                                                                                                                         | 816 |   |   | 820 |   |
| Available-for-sale investments, at quoted market value (cost of $1,989 and $1,980 at  March 31, 2011 and December 31, 2010, respectively)                                | 2,509 |   |   | 2,426 |   |
| Deposit – related party                                                                                                                                            | 300 |   |   | 300 |   |
| Total assets                                                                                                                                                             | $ | 33,762 |   |   | $ | 34,585 |   |
| Liabilities and Stockholders’ Equity                                                                                                                               |   |   |   |   |   |
| Current liabilities                                                                                                                                                      |   |   |   |   |   |
| Current portion of capital lease obligation                                                                                                                              | $ | 46 |   |   | $ | 44 |   |
| Current portion of revolving line of credit                                                                                                                              | 1,157 |   |   | 1,157 |   |
| Accounts payable                                                                                                                                                         | 6,938 |   |   | 6,487 |   |
| Accrued liabilities                                                                                                                                                      | 4,963 |   |   | 4,221 |   |
| Current portion of advances on contracts in progress                                                                                                                     | 8,684 |   |   | 9,010 |   |
| Liabilities of discontinued operations                                                                                                                                   | 362 |   |   | 366 |   |
| Total current liabilities                                                                                                                                                | 22,150 |   |   | 21,285 |   |
|                                                                                                                                                                     |   |   |   |
| Long-term portion of capital lease obligation                                                                                                                            | 46 |   |   | 58 |   |
| Deferred compensation                                                                                                                                                    | 2,509 |   |   | 2,426 |   |
| Other long-term liabilities                                                                                                                                              | 967 |   |   | 911 |   |
| Total long-term liabilities                                                                                                                                              | 3,522 |   |   | 3,395 |   |
| Total liabilities                                                                                                                                                        | 25,672 |   |   | 24,680 |   |
|                                                                                                                                                                     |   |   |   |
| Stockholders’ equity                                                                                                                                               |   |   |   |
| Common stock, $0.01 par value; 20,000,000 shares authorized; 8,362,633 and 8,360,133 shares issued and outstanding on March 31, 2011 and December 31, 2010, respectively | 84 |   |   | 84 |   |
| Additional paid-in capital                                                                                                                                               | 22,101 |   |   | 21,979 |   |
| Accumulated deficit                                                                                                                                                      | (14,615 | ) |   | (12,604 | ) |
| Accumulated other comprehensive income                                                                                                                                   | 520 |   |   | 446 |   |
| Total stockholders’ equity                                                                                                                                         | 8,090 |   |   | 9,905 |   |
| Total liabilities and stockholders’ equity                                                                                                                         | $ | 33,762 |   |   | $ | 34,585 |   |

----

|                                                                                                                             |
|-----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                             |  |  |  |  |  |  |  |
|                                                                                                                        | Three Months Ended March 31, |
|                                                                                                                        | 2011 |   | 2010 |
| Net sales and revenues                                                                                                      |   |   |   |   |
| Sales of goods                                                                                                              | $ | 15,717 |   |   | $ | 15,301 |   |
| Contract research, service and license revenues                                                                             | 2,724 |   |   | 3,564 |   |
|           Total net sales and revenues                                    | 18,441 |   |   | 18,865 |   |
|                                                                                                                        |   |   |   |
| Cost of sales and revenues                                                                                                  |   |   |   |
| Cost of goods sold                                                                                                          | 13,347 |   |   | 12,513 |   |
|      Cost of contract research, services and licenses                                              | 2,381 |   |   | 2,590 |   |
|           Total cost of sales and revenues                                | 15,728 |   |   | 15,103 |   |
| Gross margin                                                                                                                | 2,713 |   |   | 3,762 |   |
|                                                                                                                        |   |   |   |
| Operating expenses                                                                                                          |   |   |   |
|       Selling, general and administrative expenses                                            | 4,297 |   |   | 4,746 |   |
|       Internal research and development expenses                                              | 399 |   |   | 301 |   |
|           Total operating expenses                                        | 4,696 |   |   | 5,047 |   |
| Gain on termination of contracts                                                                                            | — |   |   | 837 |   |
| Loss from continuing operations                                                                                             | (1,983 | ) |   | (448 | ) |
|                                                                                                                        |   |   |   |
| Interest expense, net                                                                                                       | (31 | ) |   | (107 | ) |
| Foreign exchange gain (loss)                                                                                                | 3 |   |   | (20 | ) |
|      Total other expense, net                                                                      | (28 | ) |   | (127 | ) |
|                                                                                                                        |   |   |   |
| Net loss from continuing operations                                                                                         | (2,011 | ) |   | (575 | ) |
|                                                                                                                        |   |   |   |   |   |
| Net loss from discontinued operations, net of tax                                                                           | — |   |   | (87 | ) |
| Net loss                                                                                                                    | $ | (2,011 | ) |   | $ | (662 | ) |
|                                                                                                                        |   |   |   |
| Basic and diluted loss per share:                                                                                           |   |   |   |   |   |
| From continuing operations, net of tax                                                                                      | $ | (0.24 | ) |   | $ | (0.07 | ) |
| From discontinued operations, net of tax                                                                                    | — |   |   | (0.01 | ) |
| Basic and diluted loss per share                                                                                            | $ | (0.24 | ) |   | $ | (0.08 | ) |
|                                                                                                                        |   |   |   |
| Weighted average number of common and common equivalent    shares outstanding – basic and diluted | 8,360,383 |   |   | 8,334,688 |   |

----

|                                                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                  |  |  |  |  |  |  |  |
|                                                                                                                                                             | Three months ended March 31, |
|                                                                                                                                                             | 2011 |   | 2010 |
| Cash flows from operating activities:                                                                                                                            |   |   |   |
| Net loss                                                                                                                                                         | $ | (2,011 | ) |   | $ | (662 | ) |
| Less: Net loss from discontinued operations, net of tax                                                                                                          | — |   |   | (87 | ) |
| Net loss from continuing operations                                                                                                                              | (2,011 | ) |   | (575 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities:                                                                                 |   |   |   |
| Depreciation and amortization                                                                                                                                    | 420 |   |   | 408 |   |
| Deferred compensation                                                                                                                                            | 74 |   |   | 64 |   |
| Stock-based compensation                                                                                                                                         | 113 |   |   | 121 |   |
| Provision for accounts receivable reserves                                                                                                                       | (9 | ) |   | (128 | ) |
| Provision for inventory reserve                                                                                                                                  | 150 |   |   | 73 |   |
| Changes in assets and liabilities:                                                                                                                               |   |   |   |
| Restricted cash                                                                                                                                                  | — |   |   | (292 | ) |
| Accounts receivable                                                                                                                                              | 1,136 |   |   | (2,707 | ) |
| Inventories                                                                                                                                                      | (1,373 | ) |   | 3,821 |   |
| Deferred cost of goods sold                                                                                                                                      | 344 |   |   | (728 | ) |
| Deposits, prepaid expenses and other current assets                                                                                                              | (234 | ) |   | (96 | ) |
| Accounts payable, accrued liabilities and other liabilities                                                                                                      | 1,249 |   |   | (4,995 | ) |
| Advances on contracts in progress                                                                                                                                | (326 | ) |   | 716 |   |
| Net cash used in operating activities of continuing operations                                                                                                   | (467 | ) |   | (4,318 | ) |
|                 Net cash used in operating activities of discontinued operations | (4 | ) |   | (756 | ) |
|                   Net cash used in operating activities                | (471 | ) |   | (5,074 | ) |
|                                                                                                                                                             |   |   |   |
| Cash flows from investing activities:                                                                                                                            |   |   |   |
| Purchase of property and equipment                                                                                                                               | (91 | ) |   | (226 | ) |
| Additions to intangible and other assets                                                                                                                         | (17 | ) |   | (95 | ) |
| Net cash used in investing activities                                                                                                                            | (108 | ) |   | (321 | ) |
|                                                                                                                                                             |   |   |   |
| Cash flows from financing activities:                                                                                                                            |   |   |   |
| Principal payments on capital lease obligations                                                                                                                  | (10 | ) |   | (8 | ) |
| Principal payments on equipment line of credit                                                                                                                   | — |   |   | (277 | ) |
| Proceeds from exercise of stock options                                                                                                                          | 9 |   |   | — |   |
| Net cash used in financing activities                                                                                                                            | (1 | ) |   | (285 | ) |
| Net decrease in cash and cash equivalents                                                                                                                        | (580 | ) |   | (5,680 | ) |
|                                                                                                                                                             |   |   |   |
| Cash and cash equivalents, beginning of period                                                                                                                   | 6,259 |   |   | 8,999 |   |
| Cash and cash equivalents, end of period                                                                                                                         | $ | 5,679 |   |   | $ | 3,319 |   |
|                                                                                                                                                             |   |   |   |
| Supplemental disclosures of cash flow information:                                                                                                               |   |   |   |
|    Interest paid                                                                                                                                  | $ | 31 |   |   | $ | 107 |   |
|   Income taxes refunded, net                                                                                                                           | $ | (35 | ) |   | $ | (19 | ) |

----

|    |                             |
|----|-----------------------------|
| 1. | Description of the Business |

|    |                              |
|----|------------------------------|
| 2. | Interim Financial Statements |

----

|    |                                                       |
|----|-------------------------------------------------------|
| 3. | Accounts Receivable/Advances on Contracts in Progress |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
| (in thousands)                                   | March 31, 2011 |   | December 31, 2010 |
| Amounts billed                                   | $ | 6,199 |   |   | $ | 7,196 |   |
| Accrued revenue                                  | 118 |   |   | 258 |   |
|                                             | 6,317 |   |   | 7,454 |   |
| Less:  Allowance for doubtful accounts | (120 | ) |   | (130 | ) |
| Net accounts receivable - trade                  | $ | 6,197 |   |   | $ | 7,324 |   |
| Advances on contracts in progress                | $ | 8,684 |   |   | $ | 9,010 |   |

|    |                                              |
|----|----------------------------------------------|
| 4. | Inventories and Deferred Costs of Goods Sold |

----

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |
| (in thousands)              | March 31, 2011 |   | December 31, 2010 |
|                        |   |   |   |
| Raw materials               | $ | 3,021 |   |   | $ | 2,919 |   |
| Work in process             | 5,727 |   |   | 4,262 |   |
| Finished goods              | 3,407 |   |   | 3,751 |   |
| Net inventory               | $ | 12,155 |   |   | $ | 10,932 |   |
| Deferred cost of goods sold | $ | 674 |   |   | $ | 1,018 |   |

|    |                |
|----|----------------|
| 5. | Loss Per Share |

|                                                                                                      |
|------------------------------------------------------------------------------------------------------|
|                                                                                                      |  |  |  |  |  |
|                                                                                                 | Three Months Ended March 31, |
|                                                                                                 | 2011 |   | 2010 |
| Weighted average number of common and common equivalent shares outstanding – basic             | 8,360,383 |   |   | 8,334,688 |   |
| Add:  Net additional common shares upon assumed exercise of common stock options           | — |   |   | — |   |
| Adjusted weighted average number of common and common equivalents shares outstanding – diluted | 8,360,383 |   |   | 8,334,688 |   |

----

|    |                                            |
|----|--------------------------------------------|
| 6. | Operating Segments and Related Information |

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in thousands)                            | Solar |   | Biomedical |   | Optoelectronics |   | TotalCompany |
| For the three months ended March 31, 2011 |   |   |   |   |   |   |   |
| Net sales and revenues                    | $ | 15,778 |   |   | $ | 1,950 |   |   | $ | 713 |   |   | $ | 18,441 |   |
| Income (loss) from continuing operations  | $ | (1,341 | ) |   | $ | 222 |   |   | $ | (864 | ) |   | $ | (1,983 | ) |
|                                      |   |   |   |   |   |   |   |
| For the three months ended March 31, 2010 |   |   |   |   |   |   |   |   |
| Net sales and revenues                    | $ | 15,301 |   |   | $ | 2,243 |   |   | $ | 1,321 |   |   | $ | 18,865 |   |
| Income (loss) from continuing operations  | $ | (429 | ) |   | $ | 540 |   |   | $ | (559 | ) |   | $ | (448 | ) |

|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |  |  |  |  |  |  |
|              | Three Months Ended March 31, |
| (in thousands)    | 2011 |   | % |   | 2010 |   | % |
| United States     | $ | 11,079 |   |   | 60 | % |   | $ | 14,727 |   |   | 78 | % |
| Europe/Africa     | 756 |   |   | 4 |   |   | 1,736 |   |   | 9 |   |
| Asia              | 6,593 |   |   | 36 |   |   | 2,386 |   |   | 13 |   |
| Rest of the world | 13 |   |   | — |   |   | 16 |   |   | — |   |
|              | $ | 18,441 |   |   | 100 | % |   | $ | 18,865 |   |   | 100 | % |

|    |                             |
|----|-----------------------------|
| 7. | Intangible and Other Assets |

----

|                               |
|-------------------------------|
|                               |  |  |  |  |
| (in thousands)                |   | Amortization Expense |
|  2011 remaining 9 months |   | $ | 99 |   |
| 2012                          |   | 123 |   |
| 2013                          |   | 118 |   |
| 2014                          |   | 108 |   |
| 2015 and beyond               |   | 118 |   |
|                          |   | $ | 566 |   |

|    |                                |
|----|--------------------------------|
| 8. | Available-for-Sale Investments |

|    |                         |
|----|-------------------------|
| 9. | Fair Value Measurements |

----

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in thousands)                           | Balance as of March 31, 2011 |   | Level 1 |   | Level 2 |   | Level 3 |
| Cash and short term investments          | $ | 17 |   |   | $ | 17 |   |   |   |   |   |
| Common stock                             |   |   |   |   |   |   |   |
| Basic Materials                          | 94 |   |   | 94 |   |   |   |   |   |
| Consumer Goods                           | 8 |   |   | 8 |   |   |   |   |   |
| Financial                                | 68 |   |   | 68 |   |   |   |   |   |
| Healthcare                               | 47 |   |   | 47 |   |   |   |   |   |
| Industrial Goods                         | 27 |   |   | 27 |   |   |   |   |   |
| Services                                 | 82 |   |   | 82 |   |   |   |   |   |
| Technology                               | 44 |   |   | 44 |   |   |   |   |   |
| Total Common Stock                       | 370 |   |   | 370 |   |   |   |   |   |
| Mutual Fund                              |   |   |   |   |   |   |   |
| Diversified Emerging Markets             | 204 |   |   |   |   | 204 |   |   |   |
| Foreign Large Blend                      | 159 |   |   |   |   | 159 |   |   |   |
| Foreign Large Growth                     | 209 |   |   |   |   | 209 |   |   |   |
| Foreign Small/Mid Value                  | 155 |   |   |   |   | 155 |   |   |   |
| Large Growth                             | 554 |   |   |   |   | 554 |   |   |   |
| Small Blend                              | 232 |   |   | 232 |   |   |   |   |   |
| Value Fund                               | 99 |   |   |   |   | 99 |   |   |   |
| Total Mutual Fund                        | 1,612 |   |   | 232 |   |   | 1,380 |   |   |   |
| Fixed income                             |   |   |   |   |   |   |   |
| Domestic                                 | 485 |   |   |   |   | 485 |   |   |   |
| International                            | 25 |   |   |   |   | 25 |   |   |   |
| Total Fixed Income                       | 510 |   |   | — |   |   | 510 |   |   |   |
| Total available-for-sale investments (1) | $ | 2,509 |   |   | $ | 619 |   |   | $ | 1,890 |   |   | $ | — |   |
| Percent of total                         | 100 | % |   | 25 | % |   | 75 | % |   | — | % |

|           |                                                                                                                                                                                                                                        |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | Changes in the fair value of available-for-sale investments are recorded in accumulated other comprehensive income, a component of stockholders’ equity, in the Company’s unaudited condensed consolidated balance sheets. |

|     |                                       |
|-----|---------------------------------------|
| 10. | Notes Payable and Credit Arrangements |

----

----

|     |                                                |
|-----|------------------------------------------------|
| 11. | Stock Option Plan and Stock-Based Compensation |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | Three Months Ended March 31, |
| (in thousands)                                   | 2011 |   | 2010 |
|                                             |   |   |   |
| Cost of contract research, services and licenses | $ | 7 |   |   | $ | 5 |   |
| Cost of goods sold                               | 22 |   |   | 12 |   |
| Administrative and selling                       | 84 |   |   | 104 |   |
| Total stock-based compensation                   | $ | 113 |   |   | $ | 121 |   |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | Number of Shares |   | Weighted-Average Exercise Price |   | Average Remaining Contractual Life (Years) |   | Aggregate Intrinsic Value |
|                                     |   |   |   |   |   |   |   |
| Options Outstanding at December 31, 2010 | 760,732 |   |   | $ | 6.56 |   |   |   |   |   |
|    Granted                | 10,000 |   |   | $ | 4.65 |   |   |   |   |   |
|    Exercised              | (2,500 | ) |   | $ | 3.50 |   |   |   |   |   |
|    Cancelled/expired      | — |   |   | $ | — |   |   |   |   |   |
| Options Outstanding at March 31, 2011    | 768,232 |   |   | $ | 6.54 |   |   | 6.55 |   |   | $ | 180,266 |   |
| Options Exercisable at March 31, 2011    | 529,057 |   |   | $ | 6.78 |   |   | 5.69 |   |   | $ | 122,966 |   |

|      |
|------|
|      |  |  |  |  |  |  |  |  |  |  |  |
| Year |   | ExpectedDividend Yield |   | Risk-FreeInterest Rate |   | ExpectedOption Life |   | ExpectedVolatility Factor |
| 2011 |   | — |   |   | 2.07 | % |   | 5.1 years |   | 75.8 | % |
| 2010 |   | — |   |   | 2.29 | % |   | 4.6 years |   | 82.1 | % |

----

|     |                    |
|-----|--------------------|
| 12. | Comprehensive Loss |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |
|                                                                    | For the Three Months Ended March 31, |
| (in thousands)                                                          | 2011 |   | 2010 |
|                                                                    |   |   |   |
| Net loss                                                                | $ | (2,011 | ) |   | $ | (662 | ) |
| Other comprehensive income:                                             |   |   |   |   |
| Unrealized gain on available for sale marketable securities, net of tax | 74 |   |   | 64 |   |
| Total comprehensive loss                                                | $ | (1,937 | ) |   | $ | (598 | ) |

|     |                                   |
|-----|-----------------------------------|
| 13. | Gains on Termination of Contracts |

|     |                                                  |
|-----|--------------------------------------------------|
| 14. | Discontinued Operations and Assets Held for Sale |

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |
| (in thousands)                                       | March 31, 2011 |   | December 31, 2010 |
|  Liabilities of Discontinued Operations         |   |   |   |   |   |
| Current liabilities of discontinued operations       |   |   |   |   |   |
| Accounts payable                                     | $ | 253 |   |   | $ | 257 |   |
| Accrued liabilities                                  | 109 |   |   | 109 |   |
| Total current liabilities of discontinued operations | 362 |   |   | 366 |   |
| Total liabilities of discontinued operations         | $ | 362 |   |   | $ | 366 |   |

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |
|                                                   | Three Months Ended March 31, |
| (in thousands)                                         | 2011 |   | 2010 |
| Net sales and revenues                                 | $ | — |   |   | $ | 217 |   |
| Gross margin                                           | $ | — |   |   | $ | (72 | ) |
| Net loss from discontinued operations, net of tax | $ | — |   |   | $ | (87 | ) |

|     |                   |
|-----|-------------------|
| 15. | Subsequent Events |

----

|         |                                                                                             |
|---------|---------------------------------------------------------------------------------------------|
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |
|                                          | Three Months Ended March 31, |
|                                          | 2011 |   | 2010 |
| Net sales and revenues                        | 100 |  % |   | 100 |  % |
| Cost of sales and revenues                    | 85 |   |   | 80 |   |
| Gross margin                                  | 15 |   |   | 20 |   |
| Selling, general and administrative expenses  | (24 | ) |   | (25 | ) |
| Internal research and development expenses    | (2 | ) |   | (1 | ) |
| Gains on termination of contracts             | — |   |   | 4 |   |
| Loss from continuing operations               | (11 | ) |   | (2 | ) |
| Other expense, net                            | — |   |   | (1 | ) |
| Loss from continuing operations               | (11 | ) |   | (3 | ) |
| Loss from discontinued operations, net of tax | — |   |   | (1 | ) |
| Net loss                                      | (11 | )% |   | (4 | )% |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                             | Three Months Ended March 31, |   | Increase (Decrease) |
| (in thousands)                                   | 2011 |   | 2010 |   | $ |   | % |
|  Sales of goods                             | $ | 15,717 |   |   | $ | 15,301 |   |   | $ | 416 |   |   | 3 |  % |
| Contract research, services and license revenues | 2,724 |   |   | 3,564 |   |   | (840 | ) |   | (24 | )% |
| Net sales and revenues                           | $ | 18,441 |   |   | $ | 18,865 |   |   | $ | (424 | ) |   | (2 | )% |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                             | Three Months Ended March 31, |   | Increase (Decrease) |
| (in thousands)                                   | 2011 |   | % |   | 2010 |   | % |   | $ |   | % |
| Cost of goods sold                               | $ | 13,347 |   |   | 85 | % |   | $ | 12,513 |   |   | 82 | % |   | $ | 834 |   |   | 7 |  % |
| Cost of contract research, services and licenses | 2,381 |   |   | 87 | % |   | 2,590 |   |   | 73 | % |   | (209 | ) |   | (8 | )% |
| Net cost of sales and revenues                   | $ | 15,728 |   |   | 85 | % |   | $ | 15,103 |   |   | 80 | % |   | $ | 625 |   |   | 4 |  % |

----

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                | Three Months Ended March 31, |   | Increase (Decrease) |
| (in thousands)                      | 2011 |   | % |   | 2010 |   | % |   | $ |   | % |
| Selling, general and administrative | $ | 4,297 |   |   | 23 | % |   | $ | 4,746 |   |   | 25 | % |   | $ | (449 | ) |   | (9 | )% |
| Internal research and development   | 399 |   |   | 2 | % |   | 301 |   |   | 2 | % |   | 98 |   |   | 33 |  % |
| Operating expenses                  | $ | 4,696 |   |   | 25 | % |   | $ | 5,047 |   |   | 27 | % |   | $ | (351 | ) |   | (7 | )% |

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | March 31, |   | December 31, |   | Decrease |
| (in thousands)            | 2011 |   | 2010 |   | $ |   | % |
| Cash and cash equivalents | $ | 5,679 |   |   | $ | 6,259 |   |   | $ | (580 | ) |   | (9 | )% |
| Working capital           | $ | 3,707 |   |   | $ | 5,166 |   |   | $ | (1,459 | ) |   | (28 | )% |

----

----

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |   | Payments Due by Period |
| Contractual Obligations                         |   | Total |   | Less than1 Year |   | 2 - 3Years |   | 4 - 5Years |   | More Than 5 Years |
| (in thousands)                                  |   |   |   |   |   |   |   |   |   |   |
| Second Restated Revolving Credit Facility (SVB) |   | $ | 842 |   |   | $ | 842 |   |   |   |   |   |   |   |
| Restated Ex-Im Facility (SVB)                   |   | $ | 315 |   |   | $ | 315 |   |   |   |   |   |   |   |
| Purchase obligations                            |   | $ | 13,110 |   |   | $ | 13,029 |   |   | $ | 67 |   |   | $ | 14 |   |   |   |
| Unrelated party capital leases                  |   | $ | 105 |   |   | $ | 54 |   |   | $ | 46 |   |   | $ | 5 |   |   |   |
| Operating leases:                               |   |   |   |   |   |   |   |   |   |   |
| Unrelated party operating leases                |   | $ | 418 |   |   | $ | 166 |   |   | $ | 252 |   |   |   |   |   |
| Related party operating leases                  |   | $ | 22,153 |   |   | $ | 3,463 |   |   | $ | 7,392 |   |   | $ | 7,019 |   |   | $ | 4,279 |   |

|         |                                                            |
|---------|------------------------------------------------------------|
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk |

|         |                         |
|---------|-------------------------|
| Item 4. | Controls and Procedures |

----

|         |                   |
|---------|-------------------|
| Item 1. | Legal Proceedings |

|          |              |
|----------|--------------|
| Item 1A. | Risk Factors |

|         |                                                             |
|---------|-------------------------------------------------------------|
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |

|         |                                 |
|---------|---------------------------------|
| Item 3. | Defaults Upon Senior Securities |

|         |                   |
|---------|-------------------|
| Item 5. | Other Information |

|         |          |
|---------|----------|
| Item 6. | Exhibits |

|      |
|------|
|      |  |
| 31.1 | Certification of the Chairman of the Board, Chief Executive Officer and President pursuant to §302 of the Sarbanes-Oxley Act of 2002. |
| 31.2 | Certificationof the Chief Financial Officer and Treasurer pursuant to §302 of the Sarbanes-Oxley Act of 2002. |
| 32.1 | Certification of the Chairman of the Board, Chief Executive Officer and President pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002. |
| 32.2 | Certification of the Chief Financial Officer and Treasurer pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002. |

|        |
|--------|
|        |  |
|   |   |

----

|        |
|--------|
|        |  |  |  |
|   |   | Spire Corporation |
|   |   |   |   |
| Dated: | May 10, 2011 | By: | /s/ Roger G. Little |
|   |   |   | Roger G. Little |
|   |   |   | Chairman of the Board, Chief Executive Officer andPresident(Principal Executive Officer) |
|   |   |   |   |
| Dated: | May 10, 2011 | By: | /s/ Robert S. Lieberman |
|   |   |   | Robert S. Lieberman |
|   |   |   | Chief Financial Officer and Treasurer(Principal Financial Officer and Principal Accounting Officer) |

----

|               |
|---------------|
|               |  |
| Exhibit  | Description |
|          |   |
| 31.1          | Certification of the Chairman of the Board, Chief Executive Officer and President pursuant to §302 of the Sarbanes-Oxley Act of 2002. |
|          |   |
| 31.2          | Certification of the Chief Financial Officer and Treasurer pursuant to §302 of the Sarbanes-Oxley Act of 2002 |
|          |   |
| 32.2          | Certification of the Chairman of the Board, Chief Executive Officer and President pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002. |
|          |   |
| 32.2          | Certification of the Chief Financial Officer and Treasurer pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002. |