ROCHESTER HILLS, Mich., Nov. 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 first quarter of its fiscal year 2010.
Total consolidated revenues for the first quarter of fiscal 2010
were $42.9 million, compared to $95.8 million in the first quarter
of fiscal 2009 and $51.4 million in the fourth quarter of fiscal
2009. Solar product and project sales for the quarter were $36.1
million, compared to $89.5 million in the same quarter last year
and $46.0 million in the fourth quarter of fiscal 2009. For the
first quarter, the company reported a net loss of $11.8 million, or
$0.28 per fully diluted share, compared to net income of $11.8
million, or $0.27 per fully diluted share, in the year-ago period.
This compares to a net loss of $17.6 million, or $0.41 per fully
diluted share, in the fourth quarter of fiscal 2009. Results for
the first and fourth quarters of fiscal 2009 have been adjusted to
reflect the company's implementation of FASB ASC 470-20. First
quarter net results were affected by several items, which, when
taken collectively, had a positive net impact of approximately $2.7
million or $0.06 per share. These items included the impact related
to the acquisition and integration of Solar Integrated Technologies
(SIT) and non-SIT related items including the sale of previously
written-down inventory and tax refunds for prior research and
development expenditures. Mark Morelli, ECD's President and Chief
Executive Officer, said "In the first quarter, new construction and
reroofing projects continued to be slow, negatively impacting sales
through our traditional building-materials channel. We are the
leaders in this building-integrated photovoltaic (BIPV) market, and
remain confident that this channel will recover and our new and
reroofing business will improve longer term." "To expand our
near-term addressable market beyond our traditional BIPV focus, we
are developing product solutions for rooftop retrofit applications
including our recently launched tilt solution. This product
leverages the light-weight attributes of our core flexible
laminates as well as our superior energy yield resulting in leading
levelized cost of energy (LCOE) performance and attractive returns
to customers worldwide," said Morelli. "We are also working with
project developers to pursue large-scale projects in our key
markets." "The addressable markets for our products are large,
especially as we extend our reach beyond our traditional BIPV
market into the existing roof market segment where our unique
product and LCOE leadership provide a cost-effective solution with
attractive returns to more customers worldwide," added Morelli.
Conference Call / Webcast Details Management of Energy Conversion
Devices will review these financial results on a conference call on
Monday, November 9, 2009, 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 38818387. 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., November 11, 2009, and can be accessed by dialing
(800) 642-1687 or (706) 645-9291 (international) with conference ID
number 38818387. 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; and 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 September 30,
----------------------- 2009 2008 (1) --------- --------- Revenues
Product and project sales $36,710 $90,801 Royalties 1,959 1,344
Revenues from product development agreements 3,991 3,271 License
and other revenues 284 349 --- --- Total Revenues 42,944 95,765
Expenses Cost of product and project sales 27,833 60,979 Cost of
revenues from product development agreements 3,281 2,181 Product
development and research 2,245 2,190 Preproduction costs 10 1,977
Selling, general and administrative 16,202 14,150 Net loss on
disposal of property, plant and equipment 974 284 Restructuring
charges 677 244 --- --- Total Expenses 51,222 82,005 ------ ------
Operating (Loss) Income (8,278) 13,760 Other Income (Expense)
Interest income 292 2,604 Interest expense (6,963) (3,564)
Distribution from joint venture 1,309 - Other nonoperating income
(expense), net 885 (926) --- ---- Total Other Income (Expense)
(4,477) (1,886) ------ ------ Net (Loss) Income before Income Taxes
(12,755) 11,874 Income tax (benefit) expense (915) 57 ---- --- Net
(Loss) Income (11,840) 11,817 Net Loss Attributable to
Noncontrolling Interest (74) - --- --- Net (Loss) Income
Attributable to ECD Shareholders $(11,766) $11,817 ======== =======
(Loss) Earnings Per Share $(0.28) $0.28 ====== ===== Diluted (Loss)
Earnings Per Share $(0.28) $0.27 ====== ===== Basic weighted shares
outstanding 42,299 42,222 Diluted shares outstanding 42,299 43,052
(1) As adjusted due to the implementation of FASB ASC 470-20.
ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES CONSOLIDATED
BALANCE SHEETS (in thousands) September 30, June 30, -------------
----------- 2009 2009 (1) --------- --------- (Unaudited) ASSETS
Current Assets: Cash and cash equivalents $54,407 $56,379
Short-term investments 201,015 245,182 Accounts receivable, net
54,912 69,382 Inventories, net 128,497 74,266 Other current assets
7,910 4,897 ----- ----- Total Current Assets 446,741 450,106
Property, Plant and Equipment, net 614,617 614,330 Other Assets:
Restricted Cash 1,563 - Goodwill 30,523 - Intangible assets, net
2,659 - Lease receivable 11,656 - Other assets 11,758 11,661 ------
------ Total Other Assets 58,159 11,661 ------ ------ Total Assets
$1,119,517 $1,076,097 ========== ========== LIABILITIES AND
STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and
accrued expenses $45,025 $50,238 Warranty liability 40,299 5,917
Convertible notes 8,000 - Other current liabilities 4,453 3,506
----- ----- Total Current Liabilities 97,777 59,661 Long-Term
Liabilities: Convertible senior notes 251,573 247,974 Capital lease
obligations 21,154 21,412 Other liabilities 22,754 9,701 ------
----- Total Long-Term Liabilities 295,481 279,087 Commitments and
Contingencies Stockholders' Equity Common stock, $0.01 par value,
100 million shares authorized, 45,755,412 and 45,754,652 issued at
September 30, 2009 and June 30,2009, respectively 458 458
Additional paid-in capital 1,056,756 1,055,705 Treasury stock (700)
(700) Accumulated deficit (328,384) (316,618) Accumulated other
comprehensive loss, net (1,797) (1,496) ------ ------ Total ECD
stockholders' equity 726,333 737,349 Accumulated deficit -
noncontrolling interest (74) - --- --- Total Stockholders' Equity
726,259 737,349 ------- ------- Total Liabilities and Stockholders'
Equity $1,119,517 $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) Three Months Ended September 30,
----------------------- 2009 2008 (1) --------- --------- Cash
flows from operating activities: Net (loss) income $(11,840)
$11,817 Adjustments to reconcile net (loss) income to net cash
(used in) provided by operating activities: Depreciation and
amortization 8,892 6,981 Amortization of debt discount and deferred
financing fees 3,908 3,601 Share-based compensation 1,051 1,478
Other-than-temporary impairment of investment - 964 Loss on sale of
property, plant and equipment 974 284 Other - 46 Changes in
operating assets and liabilities, net of foreign exchange: Accounts
receivable 8,924 (9,784) Inventories (29,880) (3,127) Other assets
446 (1,956) Accounts payable and accrued expenses (7,442) 13,744
Other liabilities (954) 2,484 Net cash (used in) provided by
operating activities (25,921) 26,532 Cash flows from investing
activities: Purchases of property, plant and equipment, net
(12,157) (46,909) Acquisition of business, net of cash acquired
(2,088) - Investment in joint ventures - (1,000) Proceeds from
maturities of investments 34,069 2,700 Proceeds from sale of
investments 9,771 - Net cash provided by (used in) investing
activities 29,595 (45,209) Cash flows from financing activities:
Principal payments under capitalized lease obligations (174) (256)
Repayments on revolving credit facility (5,705) - Proceeds from
sale of stock and share-based compensation, net of expenses - 1,191
--- ----- Net cash (used in) provided by financing activities
(5,879) 935 Effect of exchange rate changes on cash and cash
equivalents 233 268 Net decrease in cash and cash equivalents
(1,972) (17,474) Cash and cash equivalents at beginning of period
56,379 484,492 ------ ------- Cash and cash equivalents at end of
period $54,407 $467,018 ======= ======== (1) As adjusted due to the
implementation of FASB ASC 470-20. ENERGY CONVERSION DEVICES, INC.
and SUBSIDIARIES RECONCILIATION OF Q4 2009 AS ADJUSTED FOR THE
IMPLEMENTATION OF FASB ASC 470-20 (In thousands, except per share
data) Quarter Ended June 30, 2009
--------------------------------------- As previously reported in
the Form 10-K press release ASC 470-20 As Reported -------------
----------- ----------- Revenues Product and project sales $46,014
$- $46,014 Royalties 1,991 - 1,991 Revenues from product
development agreements 3,094 - 3,094 License and other revenues 316
- 316 --- --- --- Total Revenues 51,415 - 51,415 Expenses Cost of
product and project sales 41,001 27 41,028 Cost of revenues from
product development agreements 2,533 - 2,533 Product development
and research 2,418 - 2,418 Preproduction costs 276 - 276 Selling,
general and administrative 14,915 - 14,915 Net loss on disposal of
property, plant and equipment 1,610 - 1,610 Restructuring charges
1,657 - 1,657 ----- --- ----- Total Expenses 64,410 27 64,437
------ --- ------ Operating (Loss) Income (12,995) (27) (13,022)
Other Income (Expense) Interest income 443 - 443 Interest expense
(3,003) (1,775) (4,778) Other nonoperating income (expense), net
437 - 437 --- --- --- Total Other Income (Expense) (2,123) (1,775)
(3,898) ------ ------ ------ Net (Loss) Income before Income Taxes
(15,118) (1,802) (16,920) Income tax (benefit) expense 653 - 653
--- --- --- Net (Loss) Income $(15,771) $(1,802) $(17,573) ========
======= ======== (Loss) Earnings Per Share $(0.37) $(0.05) $(0.42)
====== ====== ====== Diluted (Loss) Earnings Per Share $(0.37)
$(0.04) $(0.41) ====== ====== ====== Basic weighted shares
outstanding 42,314 - 42,314 Diluted shares outstanding 42,355 -
42,355 DATASOURCE: Energy Conversion Devices, Inc. CONTACT: Mark
Trinske, Vice President, Investor Relations & Communications,
+1-248-299-6063 Web Site: http://www.energyconversiondevices.com/
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