ARISE Technologies Corporation has spoken out about its 2008 financial results, which will be officially released on March 9th, 2009. The company saw increases in shipments from its new German plant in the fourth quarter, reaching approximately 6.2MW, a 24% increase from the 5MW shipped in 3Q08, but overall shipments for the second half of the year were down to 11.2MW on the company’s projection OF 12-13MW.
The company also announced following uncertainty regarding the completion date of its cell manufacturing line, dubbed Line 2 (pictured below), it can confirm that the plan is on track for completion early in the second quarter of 2009. The uncertainty had arisen from a lag in schedule in the manufacture of a key piece of equipment for the line.
ARISE’s revenue will hit the $18.5-19.5 million mark for the fourth quarter of 2008, below the $21 million to $24 million guide given by the company in November 2008. ARISE also managed to reduce the scrap rate by about 20% compared to the third quarter scrap rate, and saw even further reductions in January, according to the company.
An inventory valuation write-down in the fourth quarter of 2008 is necessary to counter the effects of purchase deferrals by customers as well as global price declines. The write-down will be approximately $2.8 million. The company also plans to implement spending cuts for 2009, but was unable to give financial guidance for 2009.
“Our broad strategies remain the same. We are focusing on the silicon and PV cell businesses as the areas that should enable us to grow impressively and profitably in the future to create long-term, sustainable value for our shareholders,” said Vern Heinrichs, interim President and Chief Executive Officer.