Energy Conversion Devices Reports Third Quarter Fiscal 2008 Results
Energy Conversion Devices, Inc. (ECD) announced financial results for the third quarter and nine-month period ended March 31, 2008.
Total consolidated revenues for the quarter were $70 million, up 24% from second quarter revenues of $56.4 million, and 155% higher than third quarter fiscal 2007 revenues of $27.4 million. Solar product sales were $64.9 million, a 31% sequential increase and a 193% increase over the prior-year quarter.
Net income for the third quarter was $7.0 million, or $0.17 per share, compared to a net loss of $5.4 million, or $0.14 per share, in the second quarter of fiscal 2008, and a net loss of $6.9 million, or $0.17 per share, in the year-ago period. Third quarter results include preproduction costs of approximately $751,000 and restructuring charges of $2.4 million, representing $0.08 per share in the aggregate.
Gross margin on product sales in the solar business was 30.7% in the third quarter, compared with 19.2% in the second quarter. The gross margin improvement was driven by better factory utilization and yield, and favorable customer/product mix.
Mark Morelli, ECD’s President and CEO, commented, "I’m pleased to report that we’ve reached profitability, and we’ve done so through sustainable changes to our business. This is a key milestone in our company’s history, and a testament to the commitment and hard work of our colleagues."
United Solar Ovonic produced 21.6MWs in the third quarter and 47.4 MWs for the first nine months of the fiscal year. The company confirmed its plans to expand and add 120MWs of additional nameplate capacity to its existing Greenville facilities. ECD will be able to internally fund this expansion through available funds and cash flow from operations. This previously announced expansion will increase the company’s nameplate capacity to approximately 300MWs by the end of fiscal year 2010.
"Our focused efforts are achieving tangible results. These include profitability driven by operational improvements, a substantial increase in sustainable gross margin, and $6 million in positive operating cash flow for the fiscal third quarter. Demand for our products continues to exceed available supply, and we are emphasizing take-or-pay agreements which give us better forward visibility, while ensuring supply to our strategic channel partners. These changes have strengthened our current financial position, positioned us for future profitable growth and give us the flexibility to internally fund our new 120MW expansion," added Morelli.