Energy Conversion Devices, Inc. (ECD) has said that revenues from the
company’s solar business represented 89 percent of total revenues, or
$41.9 million – a 33 percent sequential increase and a 76 percent
increase over the prior-year quarter. The demand was related to its
‘UNI-SOLAR’ laminates, with strong international demand from customers
in Italy and Germany as well as its U.S. domestic market, the company
said.
Total revenues in the first quarter of fiscal 2008 were $47.0 million,
up 31 percent from prior-quarter revenues of $36.0 million and up 73
percent from $27.2 million in the first quarter of fiscal 2007.
Mark
Morelli, ECD’s new president and CEO, stated, “Since joining ECD as CEO
in September, I have focused our organization on accelerating the
growth and enhancing the profitability of our solar business. We are
rapidly transitioning from an R&D orientation to a company with a
performance-based culture that is expanding production capacity to meet
increasing global demand for our solar laminates. Our primary near-term
objective is to improve sales and operating efficiencies as we ramp up
significant new production capacity. Our laminates continue to gain
momentum in the marketplace as demonstrated by our growing pipeline of
business. For example, our supply agreements and commitments for the
second quarter of fiscal 2008 exceed our available capacity.”
The
company produced 10.4MW and shipped 13.1MW in the quarter. The gross
margin for solar was 18 percent, including an approximately six percent
adverse impact primarily related to the ramp up of Auburn Hills 2 and
manufacturing- related issues at Auburn Hills 1, noted Sanjeev Kumar,
ECD’s Chief Financial Officer. The company is working on improving its
solar margins to achieve a 25 percent gross margin target.
Gross
margins on solar product sales for the second fiscal quarter are
expected to be approximately 15 to 16 percent, reflecting the ramp up
of the company’s first Greenville facility. The company also expects
restructuring charges of $2.0 to $2.5 million and preproduction costs
of approximately $2 to $3 million in the quarter. Gross margins in the
UNI-SOLAR business are expected to approach 21 percent to 23 percent in
the fourth quarter fiscal 2008, at which time the company expects to
reach sustainable profitability.
