Energy Conversion Devices Reports Revenues of $316 Million & Earnings per Share of $0.29 For Fiscal 2009
Energy Conversion Devices, Inc. (ECD) announced financial results for its fourth quarter and fiscal year ended June 30, 2009. Total consolidated revenues for the quarter were $51.4 million compared to $82.4 million in the fourth quarter of fiscal 2008 and $66.0 million in the third quarter of fiscal 2009. Solar product sales for the quarter were $46.0 million compared to $77.0 million in the same quarter last year and $59.7 million in the third quarter of fiscal 2009.
For the fourth quarter, the company reported a loss of $15.8 million or a loss of $0.37 per fully diluted share compared to a net income of $9.9 million or $0.24 per fully diluted share in the year-ago period. This compares to net income of $1.3 million or $0.03 per fully diluted share in the third quarter of fiscal 2009.
For the fiscal year ended June 30, 2009, total consolidated revenues were $316.3 million compared to $255.9 million in the prior year. Solar product sales were $292.4 million for fiscal 2009 compared to $231.5 million for the prior year. Net income for fiscal 2009 was $12.5 million or $0.29 per fully diluted share versus net income of $3.9 million or $0.09 per fully diluted share in the year-ago period. Net operating cash flow for fiscal 2009 was $11.1 million versus $28.5 million during fiscal 2008.
Mark Morelli, ECD’s President and Chief Executive Officer, said, "Demand for solar products in our target markets weakened further from the third quarter into the fourth quarter as commercial construction declined, building owners deferred reroofing projects, and project financing constraints continued. In response, we took deliberate steps to reduce our production levels to better match anticipated demand and to preserve strategically important capital at a time of capital market uncertainty. We pulled back on production and expansion, and reduced fixed and variable costs. These actions had a significant impact on our operating income for the second half of our fiscal year, but helped maintain positive full year cash flow."
"We are driving our demand creation activities in and beyond our core building integrated photovoltaic markets. This is highlighted by our acquisition of Solar Integrated Technologies (SIT) which expands our capabilities in large projects and strengthens our commercial team globally. SIT also enhances our ability to reduce balance-of-system and installation costs, further improving our competitive levelized cost of energy. Looking ahead, we are cautiously encouraged by an overall uptick in market activity, including a significant increase in the volume of projects on which we are bidding. Overall, our demand-creation strategy and the integration of SIT are key ingredients of our plan to return to profitability" added Mr. Morelli.
Fourth-quarter net results were negatively impacted by $13.6 million of items, of which approximately $8.8 million are non-cash charges. These include unabsorbed overhead costs of $6.1 million ($0.14 per fully diluted share) resulting from production cutbacks; restructuring costs of $1.7 million ($0.04 per fully diluted share) resulting from the previously announced consolidation of operations between the company’s Auburn Hills 1 and Auburn Hills 2 facilities and the associated headcount reduction; a write down of an asset held for sale of $1.2 million ($0.03 per fully diluted share); and other costs of $4.6 million ($0.11 per fully diluted share) which includes increases in reserves for bad debt and warranty and a write-off of certain inventory.