Applied Materials has filed a document with the U.S. Securities and Exchange Commission that acknowledges a $1.9 billion sales agreement signed in March 2008 to supply its SunFab tandem-junction amorphous-silicon thin-film PV turnkey production lines to an unnamed customer has shrunk to $250 million. The capital equipment company blamed “subsequent deterioration in global economic and financial market conditions” for the writedown.
The SEC 8-K filing says that “the parties recently entered into an amendment of the original agrement that, among other things and subject to the satisfaction of certain conditions, reduces the production capacity to be supplied by Applied and reduces the aggregate purchase price” by $1.65 billion.
The amended deal holds that “the rights and obligations of each of Applied and Buyer under the original agreements with respect to the purchase and sale of the remaining solar production equipment and related services shall terminate, except for certain rights and obligations specified in the amended agreement.”
Applied says that it “has not recognized any orders in connection with the original agreements or the amended agreement” and that the two parties will still “explore additional business opportunities.”