Evergreen Solar announced third quarter earnings after trading hours October 16th,and the share price tumbled the next day due to the small margin of revenue. The company lost 18 cents per share, far more than the expected loss of around 10 cents per share. The loss per share increased from the previous quarter, where the company lost 8 cents per share. The loss is attributed to the start up costs of the new Devens manufacturing facility. The net loss for the company is expected to continue into the fourth quarter of this year, with the company’s estimate between 8 and 10 cents per share.
Evergreen solar is still waiting days of profitability. Thus far, the company has yet to report positive earnings per share. According to the conference call the company has $309 million cash on hand, which is enough to complete the Devens manufacturing facility and produce 135 megawatts of product in 2009. Currently, the company is selling just over half of its product in the United States, with the rest of the sales coming from operations with EverQ in Europe and a small amount of business in Asia.
Although the company is currently in a period of expansion and negative earnings, good news did come out of this quarter’s conference call. The company announced two new long-term sales contracts, which will already put the 160mW Devens facility at full capacity beyond 2010. The contracts are with Mainstream Energy Corporation and AEE Solar Corp. These two contracts will put the total long-term sales backlog at over 1 gigawatt. This is a good sign for the company, as customers aren’t afraid of the current credit crunch and have faith in the quality of Evergreen Solar’s product line.
The conference call and other announcements can be found here:
Stumble It!
No comments:
Post a Comment