Energy Conversion Devices Doubles Revenues In First Quarter Of Fiscal 2009
Energy Conversion Devices, Inc. (ECD) announced financial results for the quarter ended September 30, 2008. Total consolidated revenues for the quarter were $95.8 million, an increase of 16% over the $82.4 million in revenues from the fourth quarter of fiscal 2008, and 104% higher than revenues of $47.0 million in the first quarter of fiscal 2008. Solar product sales were $89.5 million, a 16% sequential increase and a 124% increase over the prior-year quarter. The average selling price for solar laminates during the quarter was $3.04.
Net income for the first quarter was $12.7 million, or $0.29 per fully diluted share, compared to net income of $9.9 million, or $0.24 per fully diluted share, in the fourth quarter of fiscal 2008, and a net loss of $7.6 million, or $0.19 per fully diluted share, in the year-ago period. The company reported net operating cash flow of $26.5 million for the first quarter, versus a use of cash of $14.8 million during the first quarter of fiscal 2008.
First quarter net income and per-share figures include preproduction costs of $2.0 million or $0.05 per fully diluted share, restructuring costs of $0.2 million, or less than one cent per fully diluted share. The company also recorded an "other-than-temporary impairment of investment" of approximately $1.0 million, or $0.02 per fully diluted share, to reflect the decreased market value of a floating rate note issued by Lehman Brothers.
Gross margin in the first quarter on solar product sales was 33.4%, and total gross margin was 34.1%. United Solar Ovonic produced 30.8 MWs and shipped 29.5 MWs of solar laminates in the first quarter.
Mark Morelli, ECD’s President and CEO, said, "Fiscal 2009 is off to a strong start and demand continues for UNI-SOLAR products from our target markets in Europe, Asia and the US. We recognize that there are new challenges in the present environment, and we are actively managing our business model accordingly. For example, our ongoing commitment to operational excellence enabled us to complete the retrofit of our Auburn Hills 1 facility quickly, while simultaneously ramping a new production line in Greenville ahead of schedule. These improvements elevated our productivity during the quarter and contributed to stronger than anticipated gross margins."
Harry Zike, ECD’s Vice President and CFO, commented, "Our strong balance sheet and fully funded growth plan differentiates us in today’s market. With a strong cash position, positive operating cash flow, and an increasing earnings stream, we have the resources to fund demand-driven growth."
