Power electronics specialist 3W/AEG Power has reported Q3 revenues from its solar division 73% lower than the same period last year.
The company is now looking to restructure an impending bond payment and has warned improvement is necessary to ensure it can continue as a “going concern”.
The company’s solar system solutions group recorded €7.8 million (US$10.5 million) compared to €29 million (US$39.2 million) in the same period last year and €12.5 million (US$16.9 million) in the previous quarter.
Revenue across the entire company fell 36.4% in Q3 compared to the same period last year.
The company’s results statement cited wider conditions in the solar sector for the drop-off in its results for the sector.
“The market for large project orders in Solar remains difficult. Industry consolidation, a continued reduction in inverter prices and stretched payment terms and customer financing requirements pose challenges for AEG Power Solutions,” it read.
The company also noted that it had limited access to credit and limited cashlow.
“Failure to improve the liquidity position and cash flow of the business could threaten the Company’s ability to continue as a going concern,” it warned.
On Monday, 25 November it will meet with bondholders to negotiate a €9.25 million (US$12.5 million) payment due on 1 December.
New orders were also down from €38.1 million (US$51.5 million) in Q3 last year to €9.7 million (US$13.1 million) in the same period this year.