Energy Conversion Devices, Inc. (ECD) (Nasdaq: ENER), the leading global manufacturer of thin-film flexible solar laminate products for the building-integrated and commercial rooftop markets, today announced financial results for the second quarter of its fiscal year 2010.
Total consolidated revenues for the second quarter of fiscal 2010 were $52.9 million compared to $103.1 million in the second quarter of fiscal 2009 and $42.9 million in the first quarter of fiscal 2010. For the second quarter, the company reported a net loss of $39.1 million, or $0.92 attributable to ECD shareholders per fully diluted share. In the year-ago period, net income was $13.0 million, or $0.31 attributable to ECD shareholders per fully diluted share. In the first quarter of fiscal 2010, the company reported a net loss of $11.8 million, or $0.28 attributable to ECD shareholders per fully diluted share.
For the six months ending December 31, 2009, total consolidated revenues were $95.9 million compared to $198.9 million in the prior year. Net loss for the first six months of fiscal 2010 was $50.9 million, or $1.20 attributable to ECD shareholders per fully diluted share. For the year-ago period, net income was $24.9 million, or $0.58 attributable to ECD shareholders per fully diluted share.
The second quarter net results were impacted by costs related to the integration of Solar Integrated Technologies and the company’s recent reduction in workforce. These costs included an inventory write off of $2.5 million charged to Cost of Product and Project Sales, asset impairments of $1.3 million, and restructuring expenses of $2.4 million. In addition, there was a $7.4 million charge to Cost of Product and Project Sales related to factory underutilization.
Mark Morelli, ECD’s President and Chief Executive Officer, said, “We made progress on our business model expansion in the second quarter. Our new projects business is gaining traction as demonstrated by our recent announcements, including the new agreement with Enel Green Power of Italy that will be up to 25 megawatts. Additionally, our new PowerTiltTM product is already seeing excellent customer interest even before our expected initial shipments this spring.”
“We are also pleased with the progress we are making on our technology roadmap,” added Mr. Morelli. “We have a proven track record of developing new technologies and successfully bringing new products to market. We are confident in our ability to achieve 12 percent laminate conversion efficiency and less than $0.95 cost per watt.”
Mr. Morelli concluded, “We reduced our inventory balances, continued to restructure our company and are encouraged by the early results of the business initiatives undertaken in the second quarter. We’ve signed more than 35 megawatts of new projects and agreements since the end of the quarter, and we expect to build on this momentum in the second half of the fiscal year.”
Conference Call / Webcast Details
Management of Energy Conversion Devices will review these financial results on a conference call on Tuesday, February 9, 2010, at 10:00 a.m. EST. The dial-in number for the live audio call is (877) 858-2512 or (706) 634-6076 (international) with conference ID number 53525895. The conference call will be webcast live over the Internet and can be accessed in the Investor Relations – Conference Calls section of the company’s website at www.energyconversiondevices.com
An audio replay of the call will be available approximately two hours after the conclusion of the call. The audio replay will remain available until 11:59 p.m., February 11, 2010, and can be accessed by dialing (800) 642-1687 or (706) 645-9291 (international) with conference ID number 53525895. The webcast will also be archived on the company’s website.
About Energy Conversion Devices
Energy Conversion Devices is a leader in building-integrated and rooftop photovoltaics. The company manufactures, sells and installs thin-film solar laminates that convert sunlight to energy using proprietary technology. ECD’s UNI-SOLAR® brand products are unique because of their flexibility, light weight, ease of installation, durability, and real-world efficiency. Through its Solar Integrated Technologies business, the company also designs, manufactures and installs rooftop photovoltaic systems which enable customers to transform unused space on the rooftop into a value-generating asset. For more information, please visit www.energyconversiondevices.com