UPDATE 3-A123 posts loss, revenue beats Wall St

* Q3 loss/share $1.78 vs $2.06/share loss a year ago

* Q3 revenue $23.6 mln vs $19.2 mln Wall Street estimate

* Shares slip 1.6 percent to $17.70 in after-hours trading (Adds details on Chrysler relationship, workforce, share movement, changes analyst comment)

LOS ANGELES, Nov 10 (Reuters) - Battery maker A123 Systems Inc (AONE.O) posted revenue that beat Wall Street estimates along with a big loss on Tuesday, in its first quarterly results since its closely watched share debut in September.

A123, which develops batteries for electric cars and plug-in hybrids and works with Chrysler and General Motors [GM.UL], reported third-quarter revenue of $23.6 million, up from $22.9 a year ago and topping analysts' average view of $19.2 million, according to Thomson Reuters I/B/E/S.

Chief Executive David Vieau tried to allay analysts' concerns about A123's relationship with Chrysler after the carmaker said last week it would dismantle its team working on electric vehicles and fold its plans into Fiat SpA (FIA.MI).

"I'd say we've maintained what we had as a relationship and we've strengthened it in terms of expanding the different people that we deal with," Vieau said on a call with analysts.

The company also said it was in various stages of talks with seven different passenger car customers and was working on a new design for a new heavy duty vehicle for customer BAE Systems Plc (BAES.L).

Pacific Crest Securities analyst Ben Schuman said a firm supply agreement with Chrysler was probably "number one" on investor's watch-list.

"Number two is new design wins on the passenger automotive side," Schuman added.

He noted most of the third-quarter revenue growth came from the smart grid segment, while revenue from transportation was down from the previous quarter and a little bit below his expectations.

A123 shares slipped 1.6 percent in after-hours trading to $17.70, after rising initially. The shares closed up at $17.98 on Nasdaq in regular trading.

The stock made its debut in late September at $17 -- nearly 26 percent above the initial public offering price -- and soared 50 percent in its first day of trading. [ID:nN24175259]

A123's net loss in the third quarter was $22.9 million, or $1.78 per share, compared with $18.9 million, or $2.06 per share, a year ago.

For 2009, the company forecast revenue of $86 million to $88 million. While it has grown its workforce to about 1,700 people, it plans to expand its sales team, the company said.

A123 won a $249 million grant in August from U.S. stimulus funds for companies that make advanced automotive batteries and is in talks with the Department of Energy for $250 million in loans to support battery manufacturing in the United States. (Reporting by Laura Isensee; editing by Andre Grenon and Bernard Orr)