ROCHESTER HILLS, Mich., Feb. 9 /PRNewswire-FirstCall/ -- Energy
Conversion Devices, Inc. (ECD) (NASDAQ:ENER), the leading global
manufacturer of thin-film flexible solar laminate products for the
building-integrated and commercial rooftop markets, today announced
financial results for the second quarter of its fiscal year 2010.
Total consolidated revenues for the second quarter of fiscal 2010
were $52.9 million compared to $103.1 million in the second quarter
of fiscal 2009 and $42.9 million in the first quarter of fiscal
2010. For the second quarter, the company reported a net loss of
$39.1 million, or $0.92 attributable to ECD shareholders per fully
diluted share. In the year-ago period, net income was $13.0
million, or $0.31 attributable to ECD shareholders per fully
diluted share. In the first quarter of fiscal 2010, the company
reported a net loss of $11.8 million, or $0.28 attributable to ECD
shareholders per fully diluted share. For the six months ending
December 31, 2009, total consolidated revenues were $95.9 million
compared to $198.9 million in the prior year. Net loss for the
first six months of fiscal 2010 was $50.9 million, or $1.20
attributable to ECD shareholders per fully diluted share. For the
year-ago period, net income was $24.9 million, or $0.58
attributable to ECD shareholders per fully diluted share. The
second quarter net results were impacted by costs related to the
integration of Solar Integrated Technologies and the company's
recent reduction in workforce. These costs included an inventory
write off of $2.5 million charged to Cost of Product and Project
Sales, asset impairments of $1.3 million, and restructuring
expenses of $2.4 million. In addition, there was a $7.4 million
charge to Cost of Product and Project Sales related to factory
underutilization. Mark Morelli, ECD's President and Chief Executive
Officer, said, "We made progress on our business model expansion in
the second quarter. Our new projects business is gaining traction
as demonstrated by our recent announcements, including the new
agreement with Enel Green Power of Italy that will be up to 25
megawatts. Additionally, our new PowerTilt(TM) product is already
seeing excellent customer interest even before our expected initial
shipments this spring." "We are also pleased with the progress we
are making on our technology roadmap," added Mr. Morelli. "We have
a proven track record of developing new technologies and
successfully bringing new products to market. We are confident in
our ability to achieve 12 percent laminate conversion efficiency
and less than $0.95 cost per watt." Mr. Morelli concluded, "We
reduced our inventory balances, continued to restructure our
company and are encouraged by the early results of the business
initiatives undertaken in the second quarter. We've signed more
than 35 megawatts of new projects and agreements since the end of
the quarter, and we expect to build on this momentum in the second
half of the fiscal year." Conference Call / Webcast Details
Management of Energy Conversion Devices will review these financial
results on a conference call on Tuesday, February 9, 2010, at 10:00
a.m. EST. The dial-in number for the live audio call is (877)
858-2512 or (706) 634-6076 (international) with conference ID
number 53525895. The conference call will be webcast live over the
Internet and can be accessed in the Investor Relations - Conference
Calls section of the company's website at
http://www.energyconversiondevices.com/. An audio replay of the
call will be available approximately two hours after the conclusion
of the call. The audio replay will remain available until 11:59
p.m., February 11, 2010, and can be accessed by dialing (800)
642-1687 or (706) 645-9291 (international) with conference ID
number 53525895. The webcast will also be archived on the company's
website. About Energy Conversion Devices Energy Conversion Devices
is a leader in building-integrated and rooftop photovoltaics. The
company manufactures, sells and installs thin-film solar laminates
that convert sunlight to energy using proprietary technology. ECD's
UNI-SOLAR® brand products are unique because of their flexibility,
light weight, ease of installation, durability, and real-world
efficiency. Through its Solar Integrated Technologies business, the
company also designs, manufactures and installs rooftop
photovoltaic systems which enable customers to transform unused
space on the rooftop into a value-generating asset. For more
information, please visit http://www.energyconversiondevices.com/.
This release may contain forward-looking statements within the
meaning of the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include
statements concerning our plans, objectives, goals, strategies,
future events, future net sales or performance, capital
expenditures, financing needs, plans or intentions relating to
expansions, business trends and other information that is not
historical information. All forward-looking statements are based
upon information available to us on the date of this release and
are subject to risks, uncertainties and other factors, many of
which are outside of our control, that could cause actual results
to differ materially from the results discussed in the
forward-looking statements. Risks that could cause such results to
differ include: our ability to maintain our customer relationships;
the worldwide demand for electricity and the market for solar
energy; the supply and price of components and raw materials for
our products; our customers' ability to access the capital needed
to finance the purchase of our products; and risks associated with
integrating Solar Integrated Technologies, Inc. The risk factors
identified in the ECD filings with the Securities and Exchange
Commission, including the company's most recent Annual Report on
Form 10-K and most recent Quarterly Report on Form 10-Q, could
impact any forward-looking statements contained in this release.
ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per
share data) Three Months Ended Six Months Ended December 31,
December 31, ------------------ ----------------- 2009 2008 (1)
2009 2008 (1) ------- -------- ------ -------- Revenues Product and
project sales $47,195 $97,987 $83,905 $188,788 Royalties 2,254
1,543 4,213 2,888 Revenues from product development agreements
3,007 3,077 6,998 6,348 License and other revenues 456 500 740 848
------ ------- ------ ------- Total Revenues 52,912 103,107 95,856
198,872 Expenses Cost of product and project sales 58,381 63,649
86,214 124,628 Cost of revenues from Product development agreements
2,394 2,342 5,675 4,523 Product development and research 3,130
1,954 5,375 4,144 Preproduction costs - 1,831 10 3,808 Selling,
general and administrative 17,220 17,277 33,422 31,428 Net loss
(gain) on disposal of property, plant and equipment 291 (38) 1,265
246 Impairment loss 1,253 - 1,253 - Restructuring charges 2,445 191
3,122 435 ------ ------ ------- ------- Total Expenses 85,114
87,206 136,336 169,212 -------- ------ ------- ------- Operating
(Loss) Income (32,202) 15,901 (40,480) 29,660 Other Income
(Expense) Interest income 264 1,467 556 4,071 Interest expense
(6,837) (4,030) (13,800) (7,594) Distribution from joint venture -
- 1,309 - Other nonoperating expense, net (981) (77) (76) (1,002)
------- ------- -------- ------- Total Other Income (Expense)
(7,554) (2,640) (12,011) (4,525) -------- ------- -------- -------
(Loss) Income before Income Taxes and Equity Loss (39,756) 13,261
(52,491) 25,135 Income tax (benefit) expense (985) 216 (1,900) 273
-------- ------ -------- ------ (Loss) Income before Equity Loss
(38,771) 13,045 (50,591) 24,862 Equity loss (313) - (333) -
-------- ------ -------- ------ Net (Loss) Income (39,084) 13,045
(50,924) 24,862 Net Loss Attributable to Noncontrolling Interest
(79) - (153) - --------- ------- --------- ------- Net (Loss)
Income Attributable to ECD Shareholders $(39,005) $13,045 $(50,771)
$24,862 ========= ====== ========= ======= (Loss) Earnings Per
Share, Attributable to ECD Shareholders $(0.92) $0.31 $(1.20) $0.59
======= ===== ======= ===== Diluted (Loss) Earnings Per Share,
Attributable to ECD Shareholders $(0.92) $0.31 $(1.20) $0.58
======= ====== ======= ====== Basic weighted shares outstanding
42,299 42,274 42,299 42,248 Diluted shares outstanding 42,299
42,650 42,299 42,915 (1) As adjusted due to the implementation of
FASB ASC 470-20 ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (in thousands) December 31, June 30,
2009 2009(1) ------------- -------- (Unaudited) ASSETS Current
Assets: Cash and cash equivalents $90,656 $56,379 Short-term
investments 114,388 245,182 Accounts receivable, net 59,823 69,382
Inventories, net 120,824 74,266 Other current assets 8,367 4,897
------- ------- Total Current Assets 394,058 450,106 Property,
Plant and Equipment, net 613,310 614,330 Other Assets: Restricted
cash 1,738 - Goodwill 35,371 - Intangible assets, net 2,176 - Lease
receivable, net 11,438 - Other assets 12,234 11,661 ------ ------
Total Other Assets 62,957 11,661 ------ ------ Total Assets
$1,070,325 $1,076,097 ========== ========== LIABILITIES AND
STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and
accrued expenses $34,348 $50,238 Current portion of warranty
liability 12,070 5,917 Other current liabilities 6,621 3,506 ------
------ Total Current Liabilities 53,039 59,661 Long-Term
Liabilities: Convertible senior notes 255,172 247,974 Capital lease
obligations 20,878 21,412 Warranty liability 31,072 - Other
liabilities 21,913 9,701 ------- ------- Total Long-Term
Liabilities 329,035 279,087 Commitments and Contingencies (Note 10)
Stockholders' Equity Common stock, $0.01 par value, 100 million
shares authorized, 45,755,412 and 45,754,652 issued at December 31,
2009 and June 30,2009, respectively 458 458 Additional paid-in
capital 1,057,971 1,055,705 Treasury stock (700) (700) Accumulated
deficit (367,389) (316,618) Accumulated other comprehensive loss,
net (1,936) (1,496) ---------- ---------- Total ECD stockholders'
equity 688,404 737,349 Accumulated deficit - noncontrolling
interest (153) - ---------- ---------- Total Stockholders' Equity
688,251 737,349 ---------- ---------- Total Liabilities and
Stockholders' Equity $1,070,325 $1,076,097 ========== ==========
(1) As adjusted due to the implementation of FASB ASC 470-20 ENERGY
CONVERSION DEVICES, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited) (in thousands) Six Months Ended December
31, ------------------------ 2009 2008 (1) --------- -------- Cash
flows from operating activities: Net (loss) income $(50,924)
$24,862 Adjustments to reconcile net (loss) income to net cash
(used in) provided by operating activities: Depreciation and
amortization 18,300 15,035 Amortization of debt discount and
deferred financing fees 7,815 7,244 Share-based compensation 2,266
3,475 Other-than-temporary impairment of investment - 1,002 Net
loss on disposal of property, plant and equipment 1,265 420
Impairment loss 1,253 - Equity loss 333 - Other - 4,212 Changes in
operating assets and liabilities, net of foreign exchange: Accounts
receivable 4,632 (18,928) Inventories (22,430) (12,798) Other
assets (1,773) (2,176) Accounts payable and accrued expenses
(21,348) 15,161 Other liabilities 502 (337) -------- ------- Net
cash (used in) provided by Operating activities (60,109) 37,172
Cash flows from investing activities: Purchases of property, plant
and equipment (18,759) (103,247) Acquisition of business, net of
cash acquired (2,088) - Proceeds from maturities of investments
120,119 2,700 Proceeds from sale of investments 9,921 - -------
--------- Net cash provided by (used in) investing activities
109,193 (100,547) Cash flows from financing activities: Principal
payments under capitalized lease obligations and other debt (734)
(517) Repayment of revolving credit facility (5,705) - Repayment of
convertible notes (8,000) - Proceeds from sale of stock and
share-based compensation, net of expenses - 1,640 -------- -----
Net cash (used in) provided by financing activities (14,439) 1,123
Effect of exchange rate changes on cash and cash equivalents (368)
324 Net increase (decrease) in cash and cash equivalents 34,277
(61,928) Cash and cash equivalents at beginning of period 56,379
484,492 ------- -------- Cash and cash equivalents at end of period
$90,656 $422,564 (1) As adjusted due to the implementation of FASB
ASC 470-20 DATASOURCE: Energy Conversion Devices, Inc. CONTACT:
Mark Trinske, Vice President, Investor Relations &
Communications, +1-248-299-6063 Web Site:
http://www.energyconversiondevices.com/
Copyright