Evergreen Solar, Inc. Reports Fourth Quarter and Year End 2001 Results
MARLBORO, Mass., Feb 28, 2002 (BUSINESS WIRE) -- Evergreen Solar, Inc. (NASDAQ: ESLR):
Fourth Quarter Highlights:
- Product revenues in the fourth quarter of 2001 were $764,000,
an increase of approximately 80% from the third quarter of
2001.
- The Company entered into photovoltaic module distribution
agreements with Hutton Communications for the U.S. market, and
with Solar Century, Ltd. and Krannich Solartechnik for
European markets.
Evergreen Solar, Inc. (Nasdaq: ESLR), a developer, marketer, and manufacturer of photovoltaic (solar power) products for the worldwide market, today announced results for the fourth quarter and year ended December 31, 2001.
For the three months ended December 31, 2001, product revenues were $764,000, an increase of $551,000 from $213,000 for the same period in 2000. Research revenues for the fourth quarter were $100,000, as compared to $325,000 for the same period in 2000. Net loss for the fourth quarter of 2001 was $3.8 million, or $0.33 per share, as compared with a net loss of $2.0 million, or $0.29 per common share, for the fourth quarter of 2000. At December 31, 2001, cash, cash equivalents, and short-term investments totaled $26.3 million, compared to $30.0 million at September 30, 2001.
For the twelve months ended December 31, 2001, product revenues were $1.5 million, a $1.1 million increase from $419,000 for the same period in 2000. Research revenues for the twelve months ended December 31, 2001 were $932,000, as compared to $1.8 million for the same period in 2000. The decline in research revenues reflects reduced revenues received as two of the Company's multi-year research contracts were completed in the second quarter of 2001. Net loss for the twelve months ended December 31, 2001 was $12.5 million, or $1.10 per share, as compared to a net loss of $5.2 million, or $2.96 per common share, for the same period in 2000.
"We continue to be on target with the planned ramp-up of our first photovoltaic module manufacturing line, which enabled product sales to more than triple from the first half to the second half of 2001," commented Mark A. Farber, President and Chief Executive Officer of Evergreen Solar. "We have learned a substantial amount over the past year from our scale-up, and we expect this knowledge to be very valuable for future manufacturing capacity expansions."
"In addition to our significant manufacturing progress, we entered the European market through distribution agreements with Krannich Solartechnik and Solar Century Ltd.," stated Mr. Farber. "The addition of these channels supports our marketing strategy of diversification in applications and geography, with strong marketing partners."
"Based on our marketing and manufacturing progress, we have begun engineering and have authorized capital expenditures for longer lead-time equipment for our second manufacturing line. We believe the additional capacity of this second line, when completed, will enable Evergreen to better serve its growing customer base," continued Mr. Farber.
The Company will hold a conference call to discuss its fourth quarter and year end 2001 results on February 28, 2002, 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 877-371-3546 for domestic callers, and 706-634-5921 for international callers. The reservation number for both is 3270064.
In addition, a replay of the call will be available from February 28 through March 14, 2002. The replay dial-in numbers are 800-642-1687 for domestic callers, and 706-645-9291 for international callers. Please use reservation code to 3270064. The webcast of the call will remain available on Evergreen Solar's web site, www.evergreensolar.com, through March 28, 2002.
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 power.
Evergreen Solar(R) is a registered 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 current 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 poor manufacturing or product performance or higher costs attributable to the expansion or operation of manufacturing facilities; 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 or if these new products are not accepted in the marketplace; 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 relationships with current or prospective marketing or strategic partners may be affected by adverse developments in the Company's business, the partner's business, competitive factors, solar power market conditions, or financial market conditions; 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2000, filed on April 2, 2001, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2001, filed on November 14, 2001 (copies of which may be obtained at the SEC's web site at: 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)
Condensed Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- --------------------
2000 2001 2000 2001
--------- -------- ------- --------
Revenues:
Product revenues $ 213 $ 764 $ 419 1,546
Research revenues 325 100 1,753 932
--------- -------- ------- --------
Total revenues 538 864 2,172 2,478
Operating expenses:
Cost of product
revenues 1,104 3,413 2,757 9,577
Research and
development expense 818 607 3,266 2,916
Selling, general
and administrative
expenses 1,112 866 2,365 4,017
Stock-based
compensation expense 74 66 294 290
--------- -------- ------- --------
Total operating
expenses 3,108 4,952 8,682 16,800
--------- -------- ------- --------
Operating
income (loss) (2,570) (4,088) (6,510) (14,322)
Net interest income 559 310 1,305 1,845
--------- -------- ------- --------
Net income (loss) (2,011) (3,778) (5,205) (12,477)
Accretion of redeemable
convertible preferred
stock 230 - 2,283 -
--------- -------- ------- --------
Net income (loss)
attributable to
common
stockholders $ (2,241) $ (3,778) $ (7,488) $ (12,477)
--------- -------- ------- --------
Net income (loss) per
common share
(basic and diluted) $ (0.29) $ (0.33) $ (2.96) $ (1.10)
Weighted average shares
used in computing
basic and diluted
net income (loss)
per common share 7,603 11,394 2,530 11,304
Evergreen Solar, Inc. (Nasdaq: ESLR)
Balance Sheets
(in thousands)
(Unaudited)
December 31, December 31,
2000 2001
---------------- ---------------
Cash, equivalents and
short-term investments $ 45,994 $ 26,263
Other current assets 1,702 2,134
---------------- ---------------
Total current assets 47,696 28,397
Restricted cash 464 464
Fixed assets, net 7,623 16,000
---------------- ---------------
Total assets $ 55,783 $ 44,861
---------------- ---------------
Total current liabilities $ 1,640 $ 1,806
Total stockholders' equity 54,143 43,055
---------------- ---------------
Total liabilities and
stockholders' equity $ 55,783 $ 44,861
---------------- ---------------
CONTACT: Evergreen Solar, Inc., Marlboro
Richard G. Chleboski, 508/357-2221 x708
investors@evergreensolar.com
or
The Ruth Group
Investors/Media:
Stephanie Carrington / Denise Roche
646-536-7017 / 7008
scarrington@theruthgroup.com
droche@theruthgroup.com
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