Energy Conversion Devices Announces Financial Results; Production Furlough & Agreement To Co-Develop Solar Projects
Energy Conversion Devices, Inc. (ECD) announced financial results for its third quarter of fiscal 2009, ended March 31, 2009. Total consolidated revenues for the quarter were $66.0 million, compared to $70.0 million in the third quarter of fiscal 2008 and $103.1 million in the second quarter of fiscal 2009. Solar product sales were $59.7 million compared to $64.9 million in the same quarter last year, and $97.3 million in the second quarter of fiscal 2009.
Net income for the third quarter was $1.3 million or $0.03 per fully diluted share compared to net income of $7.0 million or $0.17 per fully diluted share in the year-ago period. This compares to net income of $14.2 million or $0.33 per fully diluted share in the second quarter of fiscal 2009.
Third quarter net income and per-share figures include preproduction costs of $1.3 million or $0.03 per share, and restructuring costs of $139,000 or less than $0.01 per share. Gross margin on solar product sales in the third quarter was 29.2% and consolidated gross margin was 31.6%. United Solar Ovonic produced 33.3 MWs of solar laminates in the third quarter.
For the nine months ended March 31, 2009, total consolidated revenues were $264.9 million compared to $173.5 million in the prior year. Solar product sales were $246.4 million for the first nine months of fiscal 2009 compared to $154.5 million for the prior year. Net income for the first nine months of fiscal 2009 was $28.2 million or $0.66 per fully diluted share versus a net loss of $6.0 million or a net loss of $0.15 per fully diluted share in the year-ago period. Cumulative net operating cash flow for the first nine months of fiscal 2009 was $33.7 million versus $12.5 million during the first nine months of fiscal 2008.
ECD also announced that it has begun implementing a planned temporary production furlough in the fiscal fourth quarter ending June 30, 2009. The furlough has begun in Tijuana, and will continue for the first two weeks of May and also the first two weeks of June. The company will temporarily suspend production at its Auburn Hills and Greenville sites on May 17, 2009. Production is expected to resume at Auburn Hills on June 7, 2009 and on Greenville on June 14, 2009. The company is taking these steps to manage its production volumes due to uncertain near-term demand.
Lastly, the company announced plans to co-develop a portfolio of rooftop solar installations throughout the U.S., as well as in numerous European countries, including Belgium, Germany, France, Italy, Spain and the Czech Republic.
ECD and Enfinity have identified approximately 10MW of projects that they will collaborate on in the short term. ECD, through its wholly owned subsidiary, United Solar Ovonic, will contribute UNI-SOLAR® brand photovoltaic laminates in exchange for equity in the projects. Enfinity will serve as project manager and lead the financing efforts for the projects. ECD and Enfinity expect to sell completed projects to third-party investors within 12 months of the start of commercial operation.
