Energy Conversion Devices Reports Net Income of $0.24 Per Share on Revenues of $82 Million for Fourth Quarter of Fiscal 2008
- Operating Profitability Achieved in Second Half, Solar Gross Margin Sustained at 30+ Percent
- World's Largest 12MW Solar Rooftop Installation Confirms Leadership in BIPV/Rooftop Market
- Sales Pipeline Grows 50% to $1.8 Billion
ROCHESTER HILLS, Mich., Aug 28, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- 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 fourth quarter and fiscal year ended June 30, 2008.
Total consolidated revenues for the quarter were $82.4 million, up 18 percent from third quarter revenues of $70.0 million, and 129 percent higher than fourth quarter fiscal 2007 revenues of $36.0 million. Solar product sales were $77 million, a 19 percent sequential increase and a 161 percent increase over the prior-year quarter.
Net income for the fourth quarter was $9.9 million, or $0.24 per share, compared to net income of $7.0 million, or $0.17 per share, in the third quarter of fiscal 2008, and a net loss of $13.1 million, or $0.33 per share, in the year-ago period.
Gross margin on product sales in the solar business was 33.5 percent in the fourth quarter, compared with 30.7 percent in the third quarter. United Solar Ovonic produced 26.2 MWs in the fourth quarter and 73.6 MWs for the fiscal year. As of June 30, 2008, the solar product sales pipeline was $1.8 billion, as compared to $1.2 billion at the end of the fiscal third quarter.
Mark Morelli, ECD's president and chief executive officer, said, "During fiscal 2008, we focused on operational excellence, and successfully built a strong foundation for sustained long-term growth. For example, fourth quarter solar gross margin improved to 33.5 percent compared with 15.8 percent last year. SG&A as a percent of revenue in the fourth quarter declined to 16.9 percent from 30.8 percent a year ago. As a result, we achieved profitability from operations for the second half of fiscal 2008."
Mr. Morelli added, "Fiscal 2008 marked a major transition in ECD's history, as the company generated positive operating cash flow of $28.5 million during the year, a significant improvement from the negative $21.8 million in fiscal 2007. We also completed an important capital raise that will allow us to fund our expansion to 1GW of capacity by the end of fiscal 2012. The selection of UNI-SOLAR to power the world's largest rooftop solar installation validates our continued success at selling UNI-SOLAR's differentiated value proposition into new and expanding markets and distribution channels in the rooftop and building-integrated PV markets. I am confident that our growth and momentum will continue into fiscal 2009 and beyond."
Fiscal Year Results
For fiscal 2008, total consolidated revenues were $255.9 million compared with $113.6 million for fiscal 2007, an increase of 125 percent. Solar product sales totaled $231.5 million in fiscal 2008, a 154 percent increase compared with $91.2 million last year. For fiscal 2008, the company reported net income of $3.9 million, or $0.10 per share, compared to a net loss of $25.2 million, or $0.64 per share in fiscal 2007.
The company's cash, cash equivalents, and short-term investments totaled approximately $500 million at the end of the fiscal year, reflecting the net proceeds of $405 million from the issuance of the company's convertible senior notes and common stock in June 2008. Common shares outstanding at June 30, 2008 were 45,575,554, however, as the company loaned 3,444,975 shares of its common stock to Credit Suisse International, pursuant to a share lending agreement, the shares used for the calculation of shares outstanding for the full year were 40,231,379 for basic and 41,137,849 for diluted shares.
First Quarter and Fiscal Year 2009 Guidance
Total consolidated revenues are expected to be between $95 and $98 million for the fiscal first quarter ending September 30, 2008, and between $455 and $485 million for fiscal 2009. Solar product sales for the first quarter are expected to be $89 to $91 million and $430 to $450 million for fiscal 2009. For the first quarter, gross margin is expected to be about 31 percent, and between 33 and 35 percent for the second half of the fiscal year. Restructuring costs are expected to be between $1.7 and $2.0 million for the first quarter and $2.5 to $3.0 million for fiscal 2009. Preproduction costs are expected to be between $1.5 and $1.9 million for the first quarter and between $7.0 and $9.0 million for fiscal 2009. |
