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Energy Conversion Devices Announces First Quarter Fiscal 2005 Operating Results
Tuesday November 9, 10:00 am ET
ROCHESTER HILLS, Mich., Nov. 9 /PRNewswire-FirstCall/ -- Energy Conversion Devices, Inc. (ECD Ovonics) (Nasdaq: ENER - News) announced today its operating results for the first quarter ended September 30, 2004. The Company reported income of $1.3 million on revenues of $22.2 million, compared to a loss of $14.3 million on revenues of $14.2 million in the same quarter last year. On a per-share basis, the income was $.05 in the first quarter of Fiscal 2005 compared to a loss of $.65 in the same quarter last year.
The table below summarizes the Company's operating results (in thousands):
Three Months Ended
September 30,
2004 2003
Revenues
Product sales $14,105 $6,701
Royalties 1,579 459
Revenues from product development agreements 5,912 6,839
Revenues from license agreements 238 50
Other 318 156
Total Revenues 22,152 14,205
Expenses 28,651 28,618
Net Loss from Operations (6,499) (14,413)
Other Income (Expense)
Interest income 77 316
Equity in losses of joint ventures - (244)
Distribution from joint venture 8,000 -
Other (230) 59
7,847 131
Net Income (Loss) $1,348 $(14,282)
Basic and Diluted Net Income (Loss) Per Share $.05 $(.65)
"The first quarter results are the first step in our transition to commercializing a number of core products and technologies to meet the rapidly emerging demands in the alternative energy and information technology industries," Robert C. Stempel, Chairman and CEO, said. "We are experiencing continuing growth in our solar business and increased interest in our Ovonic NiMH battery technology and market-ready products. Our loss from operations was cut in half primarily through the combination of sales growth and our cost-reduction program, two drivers that put us well on track to achieve our announced goal of sustained profitability by July 2006."
Product sales increased 110% on the strength of an $8.2 million (175%) sales increase in United Solar Ovonic's photovoltaic products. Royalties increased $1.1 million primarily as a result of recognition as revenue of an advanced royalty payment received in 1993 under which the licensee no longer has an obligation to make payments.
The improvement in our net income (loss) results primarily from:
A one-time $8.0 million distribution from Cobasys following the settlement of patent infringement disputes and counterclaims in July 2004 to partially reimburse the Company for legal expenses.
A $2.4 million improvement in gross profit at United Solar Ovonic ($0.6 million gross profit in 2004 versus $1.8 million loss in 2003) because of the increased sales and lower material costs.
A $1.9 million reduction in legal fees following the settlement of patent infringement disputes and counterclaims in July 2004.
A $1.3 million reduction in the net cost of product development resulting from the Company's cost-reduction program announced in July 2003 as we focus on the near-term commercial opportunities. |
