Evergreen Solar Announces Third-Quarter Financial Results

October 26, 2006 by Jeff Shepard

Evergreen Solar, Inc. announced financial results for the quarter ended September 30, 2006. Product revenues increased 227% to $36.2 million from $11.1 million in the third quarter of 2005, with sales of product manufactured at the first EverQ facility in Germany contributing approximately $25.4 million of the total revenue. Gross margin for the third quarter was 15.7%, compared with 10.4% for the third quarter a year ago and 4.1% for the second quarter of 2006. The increase in product gross margin was expected and primarily resulted from the incremental volume in EverQ production and sales.

Net loss attributable to common stockholders for the third quarter of 2006 was $5.6 million, or $0.08 per share. This figure includes the write-off of manufacturing equipment obsoleted by the implementation of new technology at Marlboro amounting to approximately $550,000. This compares with a net loss of $4.6 million, or $0.07 per share, for the third quarter of 2005 and a net loss of $7.5 million, or $0.11 per share, for the second quarter of 2006. Evergreen Solar recorded equity-based compensation expenses of approximately $1.1 million during the third quarter of 2006.

"Evergreen Solar continued to execute on all major initiatives in the third quarter," said Richard M. Feldt, President and Chief Executive Officer. "We completed the ramp to full production at the first EverQ factory one quarter ahead of schedule – progressing from groundbreaking to full capacity and profitability in 15 months. We finalized the long-term polysilicon supply, license and technology transfer agreements related to EverQ's partnership, subject to the receipt of regulatory approval. These agreements strengthen our ability to leverage the advantages of our String Ribbon platform. Reflecting the partners' confidence in our String Ribbon technology, we broke ground for the second EverQ factory well before executing the agreements for expanding EverQ."