Overcapacity and weak demand continue to impact sales at PV encapsulant material supplier, STR Holdings.
Net sales were US$23.1 million in Q3, down 8.1% sequentially and 58.9% from Q3 2011. The company said that Q4 sales would be in the range of US$14 million and US$16 million.
The company noted that PV encapsulant material volume sales had declined by approximately 45% in the last 12 months, while ASPs declined by approximately 20%.
Net loss from continuing operations for the third quarter of 2012 was US$3.6 million.
Robert S. Yorgensen, STR’s President and Chief Executive Officer, said: “We believe that demand has softened considerably throughout the industry on the heels of negative policy revisions, primarily in Italy and Germany, and our sequential volume reflects this. “We continue to execute our strategic objectives of reducing our cost structure and developing innovative products. The launch of our next-generation encapsulant is progressing well with favorable results obtained from our internal testing and the successful completion of damp heat testing with several prospective Chinese customers.”
Yorgensen noted in a conference call to discuss financial results that the company was close to securing the first supply contracts for the new EVA encapsulants, with volume ramps expected in early 2013. Over 20 module manufacturers were evaluating the product, according to Yorgensen.