Evergreen Solar, Inc. Reports First Quarter 2001 Results
MARLBORO, Mass., May 7, 2001 (BUSINESS WIRE) --
First Quarter Highlights:
-- Moved into the new factory in Marlboro, Massachusetts and relocated over 80% of the equipment and staff.
-- Initiated String Ribbon wafer production in Marlboro, which is now operating 24/7.
-- Displayed new products incorporating the wider 3.2-inch-wide String Ribbon at the Solar Forum 2001 trade show in Washington, DC.
-- Product revenues increased $123,000 compared to same quarter 2000.
Evergreen Solar, Inc. (Nasdaq: ESLR chart, msgs), a developer, marketer, and manufacturer of photovoltaic (solar power) products for the worldwide market, today announced results for the first quarter ended March 31, 2001.
For the three months ended March 31, 2001, product revenues were $146,000, an increase of 535% from $23,000 for the same period in 2000. Research revenues for the first quarter of 2001 were $331,000, as compared to $520,000 for the same period of last year. Net loss for the first quarter of 2001 was $2.4 million, or $0.21 per share, as compared with a net loss of $664,000 for the first quarter of 2000. At March 31, 2001, cash, cash equivalents, and short-term investments totaled $38.4 million, compared to $46.0 million at December 31, 2000. The reduction was caused by capital expenditures for plant and equipment for the Marlboro facility and operating losses.
"We are pleased by our financial performance in the first quarter of 2001. We posted a $123,000 increase in product revenues from the same period in 2000. We continued to build sales channels with geographic diversification," commented Mark A. Farber, President and Chief Executive Officer of Evergreen Solar. "The decline in research revenues for the quarter reflects reduced expenditures on our research contracts, as one of our multi-year contracts was completed in 2000 and a second neared completion."
"In April, we moved into our new factory and headquarters in Marlboro and have now relocated over 80% of our equipment and staff. All String Ribbon wafer production is now located in Marlboro, which is operating 24 hours a day, 7 days a week. Solar cell and panel production has begun phased implementation at Marlboro," Mr. Farber continued. "By executing a staged move and continuing to operate the pilot line in Waltham while starting up new equipment in Marlboro, our experienced team avoided any production black-out: we made product every day of the quarter. As we previously projected, there was an increase in operating losses this quarter, which were attributable to the Marlboro project."
"The shift from 2.2- to 3.2-inch-wide String Ribbon wafers is going well. In March, we displayed product samples incorporating the wider ribbon at the Solar Forum 2001 trade show in Washington, DC, where they were well received by attendees. As we move forward, we expect to make continued advances on next generation technologies, as well as progress building sales channels, both domestically and abroad," concluded Mr. Farber.
The Company will hold a conference call to discuss its first quarter 2001 results on Monday, May 7, 2001, at 10 AM ET. A live webcast of the conference call will be available online at www.evergreensolar.com. Web participants are encouraged to go to the web site at least 15 minutes prior to the start of the call to register, download, and install any necessary audio software. Listening to the webcast requires speakers and RealPlayer(TM) software, downloadable free at www.real.com. Those without web access may access the call telephonically at least ten minutes prior to the conference call. The dial-in numbers are (877) 234-7319 for domestic callers, and (706) 679-5324 for international callers. The reservation number for both is 94727.
In addition, a replay of the call will be available from May 7-14, 2001. The replay dial-in numbers are (800) 642-1687 for domestic callers, and (706) 645-9291 for international callers. Please use reservation code 94727. The webcast of the call will remain available on Evergreen Solar's web site, www.evergreensolar.com, through May 31, 2001.
About Evergreen Solar, Inc.
Evergreen Solar, Inc. (www.evergreensolar.com) develops, manufactures, and markets solar power products utilizing the Company's patented solar power technologies. The products provide reliable and environmentally clean electric power in global markets. Solar power applications include wireless power for remote homes, water pumping, lighting, and rural electrification, as well as complete power systems for electric utility customers choosing to generate their own environmentally benign green power.
Evergreen Solar(R) is a registered trademark and String Ribbon(TM) is a trademark of Evergreen Solar, Inc.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The Company cautions you that any statements contained in this press release which are not strictly historical statements constitute forward-looking statements. Such statements include, but are not limited to, statements reflecting management's expectations regarding the timing, cost, and success of the Company's relocation to its new facility in Marlboro, Massachusetts and future manufacturing scale-up and production; future financial performance; the Company's technology and product development, cost, and performance; the Company's current and future strategic relationships and future market opportunities; and the Company's other business and technology strategies and objectives. These statements may be identified with such words as "we expect", "we believe", "we anticipate", or similar indications of future expectations. These statements are neither promises nor guarantees, and involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Such risks and uncertainties include, among other things, the following factors: the Company's business and results of operations could be materially impaired as a result of delays in relocating to its new Marlboro facility or higher costs attributable to the expansion of manufacturing operations, the relocation, preparation and startup of the new facility; the Company is at an early stage of development and has only a limited operating history; the market for solar power products is emerging and rapidly developing, and market demand for solar power products such as the Company's products is uncertain; the Company expects to derive a substantial portion of its revenues in the future from sales of new solar power products and technologies that are currently under development and not yet commercially available, and the Company's business and results of operations will suffer materially if it fails to successfully develop these new solar power products and technologies; the Company has limited experience manufacturing large volumes of solar power products on a commercial basis at acceptable costs, which it will need to do in order to be successful; the Company relies in part on research revenues derived from contracts with various government agencies and the Company may not be able to secure or retain such contracts or the agencies may not fund such projects in the future; the Company's management team has only limited experience managing a rapidly growing company; the Company faces intense competition from other companies producing solar power and other distributed energy generation products; the Company may have difficulties or incur higher than expected costs in serving numerous and global market segments; and the market for products such as the Company's solar power products is heavily influenced by federal, state, local, and foreign government regulations and policies, as well as the availability and size of government subsidies and economic incentives, over which the Company has little control. In addition to the foregoing factors, the other economic, competitive, governmental, technological, and other risk factors identified in the Company's filings with the Securities and Exchange Commission - including the Company's Form 10-K for the fiscal year ended December 31, 2000, filed on April 2, 2001 (a copy of which may be obtained at the SEC's web site at:http://www.sec.gov) - could impact the forward-looking statements contained in this press release. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to publicly update or revise any such statements to reflect any change in Company expectations, or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
Evergreen Solar, Inc. (Nasdaq: ESLR chart, msgs)
Statements of Operations
(in thousands except per share data)
Three Months Ended
March 31,
------------------
2000 2001
------- -------
(Unaudited)
Revenues:
Product revenues $ 23 $ 146
Research revenues 519 331
------- -------
Total revenues 542 477
Operating expenses:
Cost of product revenues 300 1,440
Research and development expense 866 883
Selling, general and administrative expenses 262 1,108
Stock-based compensation expense 37 74
------- -------
Total operating expenses 1,465 3,505
------- -------
Operating income (loss) (923) (3,028)
Net interest income 259 639
------- -------
Net income (loss) (664) (2,389)
Accretion of redeemable
convertible preferred stock 620 --
------- -------
Net income (loss) attributable to
common stockholders $(1,284) $(2,389)
------- -------
Net income (loss) per common share
(basic and diluted) $ (1.60) $ (0.21)
Weighted average shares used
in computing basic and diluted
net income (loss) per common share 805 11,173
Evergreen Solar, Inc. (Nasdaq: ESLR chart, msgs)
Balance Sheets
(in thousands)
December 31, March 31,
2000 2001
------------ ------------
(Unaudited)
Cash, equivalents and short-term
investments $ 45,994 $ 38,418
Other current assets 1,702 2,335
------------ ------------
Total current assets 47,696 40,753
Restricted cash 464 464
Fixed assets, net 7,623 12,231
------------ ------------
Total assets $ 55,783 $ 53,448
------------ ------------
Total current liabilities $ 1,640 $ 1,494
Total stockholders' equity (deficit) 54,143 51,954
------------ ------------
Total liabilities, redeemable
convertible preferred stock and
stockholders' equity (deficit) $ 55,783 $ 53,448
------------ ------------
Contact:
Evergreen Solar, Inc.
Richard G. Chleboski, Chief Financial Officer
781/890-7117
info@evergreensolar.com
or
Investors/Media:
Stephanie Carrington
The Ruth Group
646-536-7017
scarrington@theruthgroup.com
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