MOUNTAIN VIEW, Calif.,
Feb. 11, 2011
/PRNewswire-Asia-FirstCall/ -- Solar EnerTech Corp. (OTC Bulletin
Board: SOEN) (the "Company") today announced unaudited financial
results for the first quarter ended December
31, 2010.
First Quarter 2011
Highlights:
- Revenue for the first quarter 2011 was $15.5 million, composed of $15.3 million in solar module sales and
$0.2 million in solar cell sales.
This compares to $17.7 million
of sales in the same quarter a year ago, composed of $15.3 million in solar module sales, $1.2 million in solar cell sales and $1.2 million in resale of raw materials.
- Net income for the first quarter 2011 increased to $5.0 million from a loss of $3.9 million in the first quarter of the prior
year. Net income for the first quarter 2011 included
$5.8 million in income from a
reversal of payroll related tax accrual and $0.7 million in non-cash stock compensation
expenses.
SOLAR MODULES
|
|
|
|
|
|
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Q-1
2011
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Q-1
2010
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%
Increase
(Decrease)
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|
Solar Module
Shipments
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8.0MW
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|
7.9MW
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|
1%
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|
Avg. Selling Price ($ /
watt)
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$1.91
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$1.93
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(1%)
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Total module shipments increased 1% to 8.0 MW in the first
quarter of fiscal year 2011 compared to 7.9 MW in the first quarter
of fiscal year 2010.
Revenue for the first quarter of fiscal year 2011 decreased 12%
to $15.5 million compared to
$17.7 million in the first quarter a
year ago. Revenue for the first quarter of fiscal year 2011 was
comprised of approximately $15.3
million in solar module sales, of which more than 98% were
sold to Europe and Australia, and $0.2
million in solar cell sales. Revenue for the first quarter
of fiscal year 2010 was comprised of approximately $15.3 million in solar module sales, $1.2 million in solar cell sales and $1.2 million in resale of raw materials. The
decrease in revenue compared to the prior year period was driven by
decreases in solar cell and raw material sales as well as the
decrease in average selling price for solar modules from
$1.93 per watt in the three months
ended December 31, 2009 to
$1.91 per watt in the three months
ended December 31, 2010. The decrease
was partially offset by an increase in solar module shipments from
7.9 MW in the three months ended December
31, 2009 to 8.0 MW in the three months ended December 31, 2010.
Gross profit for the first quarter of fiscal year 2011 decreased
to $1.1 million compared to
$1.9 million in the first quarter of
fiscal year 2010. Gross margin for the first fiscal quarter 2011
was 7% compared to 11% in the same prior year period. The decrease
in gross profit was primarily due to an increase in raw material
prices, specifically silicon wafer prices. Silicon wafer prices
increased approximately 24% from RMB
16.0 per piece during the three months ended December 31, 2009 to RMB
19.9 per piece during the three months ended December 31, 2010.
Total operating expenses for the first quarter of fiscal year
2011 was negative $3.4 million, which
included $5.8 million in income from
a reversal of payroll related tax accrual and $0.7 million in non-cash stock compensation
expenses. Excluding these non-cash items, operating expenses
for the first quarter of fiscal year 2011 were $1.7 million, or 11% of total sales. By
comparison, total operating expenses for the first quarter of
fiscal year 2011 were $2.3 million,
which included $0.6 million of non-cash stock compensation
expenses. Excluding this non-cash item, operating
expenses for the first quarter a year ago were $1.7 million, or 10% of total sales.
Net income for the first quarter of fiscal year 2011 was
$5.0 million, or $0.03 per basic and diluted share, compared to a
net loss of $3.9 million, or
$0.04 per basic and diluted share,
for the same period in fiscal 2010. The net income in the first
quarter of fiscal year 2011 primarily resulted from the reversal of
payroll related tax accrual.
Leo Shi Young, the Company's
Chief Executive Officer, stated, "We continued to experience strong
demand from our customer base for SolarE products during the first
quarter of fiscal year 2011. Financial results of this quarter
demonstrate the management's confidence to steer the company
towards profitability at a challenging time when market selling
prices are falling while material costs continue to rise. The key
is the quality that we have maintained and continued to improve for
our products, and the capability to meet the increasing demands
from our customers in Europe,
Australia and the United States."
"For the quarters to come, we expect to see stronger demand in
high-efficiency, high quality products as the solar industry
continues to grow more sophisticated. At the same time we are
striving to streamline our operations, reduce our costs, and
increase our market share," concluded Mr. Young.
Financial Position
As of December 31, 2010, the
Company's assets included $1.7
million in cash, $6.9 million
of accounts receivable, $0.9 million
of prepayments primarily for the purchase of raw materials,
$5.4 million of inventories on hand
and $2.3 million of VAT and other
receivables. Additionally, as of December
31, 2010, the Company's liabilities included $9.7 million of accounts payable, customer
advance payments and accrued liabilities and $1.5 million of short-term loans.
As of December 31, 2010, the
Company recorded a $1.5 million
liability for an outstanding Series B-1 convertible note. The note
bears interest at 6% per annum and is due on March 19, 2012.
About Solar EnerTech Corp.
Solar EnerTech is a photovoltaic solar energy cell manufacturing
enterprise incorporated in the United
States with its corporate office in Mountain View, California. The Company
has established a sophisticated 67,107-square-foot manufacturing
facility at Jinqiao Modern Technology Park in Shanghai, China. The Company currently has two
25MW solar cell production lines and a 50MW solar module production
facility.
Solar EnerTech has also established a Joint R&D Lab at
Shanghai University to develop
higher efficiency cells and to put the results of that research to
use in its manufacturing processes. Led by one of the
industry's top scientists, the Company expects its R&D program
to help bring Solar EnerTech to the forefront of advanced solar
technology research and production. For additional
information regarding the Company, please visit
http://www.solarE-power.com.
Safe Harbor Statement
Statements contained in this press release, which are not
historical facts, are forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based largely on current
expectations and are subject to a number of known and unknown
risks, uncertainties and other factors beyond our control that
could cause actual events and results to differ materially from
these statements. These statements are not guarantees of future
performance, and readers are cautioned not to place undue reliance
on these forward-looking statements, which are relevant as of the
date of the given press release and should not be relied upon as of
any subsequent date. Solar EnerTech undertakes no obligation to
update publicly any forward-looking statements.
(Unaudited Financial Statements Follow)
Solar
EnerTech Corp
Unaudited
Consolidated Statements of
Operations
|
|
|
Quarter
Ended December 31,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
15,507,000
|
|
$
17,693,000
|
|
Cost of sales
|
(14,391,000)
|
|
(15,762,000)
|
|
Gross
profit
|
1,116,000
|
|
1,931,000
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
Selling, general and
administrative
|
2,351,000
|
|
2,218,000
|
|
Research and
development
|
69,000
|
|
108,000
|
|
Gain on debt
extinguishment
|
(32,000)
|
|
-
|
|
Reversal of payroll
related tax
accrual
|
(5,817,000)
|
|
-
|
|
Total operating (income)
expenses
|
(3,429,000)
|
|
2,326,000
|
|
|
|
|
|
|
Operating income
(loss)
|
4,545,000
|
|
(395,000)
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
Interest income
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3,000
|
|
3,000
|
|
Interest expense
|
(71,000)
|
|
(4,425,000)
|
|
Gain on change in fair market
value of compound embedded derivative
|
202,000
|
|
104,000
|
|
Gain on change in fair market
value of warrant liability
|
466,000
|
|
921,000
|
|
Other expense
|
(158,000)
|
|
(132,000)
|
|
Net income
(loss)
|
$
4,987,000
|
|
$
(3,924,000)
|
|
|
|
|
|
|
|
|
|
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Net income (loss) per share -
basic
|
$
0.03
|
|
$
(0.04)
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|
Net income (loss) per share -
diluted
|
$
0.03
|
|
$
(0.04)
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic
|
160,416,534
|
|
88,256,706
|
|
Weighted average shares
outstanding - diluted
|
171,351,607
|
|
88,256,706
|
|
|
|
|
|
Solar
EnerTech Corp
Consolidated
Balance Sheets
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December 31,
2010
|
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September
30, 2010
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(Unaudited)
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(Audited)
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ASSETS
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Current assets:
|
|
|
|
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Cash and cash
equivalents
|
$
1,699,000
|
|
$
6,578,000
|
|
Accounts receivable, net of
allowance for doubtful account of $42,000 and $42,000 at December
31, 2010 and September 30, 2010, respectively
|
6,902,000
|
|
6,546,000
|
|
Advance payments and
other
|
941,000
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|
1,274,000
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|
Inventories, net
|
5,392,000
|
|
4,083,000
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VAT receivable
|
1,978,000
|
|
870,000
|
|
Other receivable
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340,000
|
|
690,000
|
|
Total current assets
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17,252,000
|
|
20,041,000
|
|
Property and equipment,
net
|
8,375,000
|
|
8,874,000
|
|
Other assets
|
740,000
|
|
735,000
|
|
Deposits
|
103,000
|
|
102,000
|
|
Total assets
|
$
26,470,000
|
|
$
29,752,000
|
|
|
|
|
|
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LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
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|
|
|
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|
|
Accounts payable
|
$
6,089,000
|
|
$
7,895,000
|
|
Customer advance
payment
|
979,000
|
|
2,032,000
|
|
Accrued expenses
|
2,631,000
|
|
2,596,000
|
|
Accounts payable and accrued
liabilities, related parties
|
-
|
|
5,817,000
|
|
Short-term loans
|
1,464,000
|
|
1,312,000
|
|
Total current
liabilities
|
11,163,000
|
|
19,652,000
|
|
Convertible notes, net of
discount
|
1,473,000
|
|
1,531,000
|
|
Derivative
liabilities
|
207,000
|
|
422,000
|
|
Warrant liabilities
|
436,000
|
|
902,000
|
|
Total liabilities
|
13,279,000
|
|
22,507,000
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
Common stock - 400,000,000
shares authorized at $0.001 par value 171,177,443 and 170,338,954
shares issued and outstanding at December 31, 2010 and September
30, 2010, respectively
|
171,000
|
|
170,000
|
|
Additional paid in
capital
|
98,411,000
|
|
97,656,000
|
|
Other comprehensive
income
|
2,958,000
|
|
2,755,000
|
|
Accumulated deficit
|
(88,349,000)
|
|
(93,336,000)
|
|
Total stockholders'
equity
|
13,191,000
|
|
7,245,000
|
|
Total liabilities and
stockholders' equity
|
$
26,470,000
|
|
$
29,752,000
|
|
|
|
|
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Contact:
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Solar EnerTech Corp.
|
CCG Investor
Relations
|
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Phone:
+86-21-6886-2220
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Mr. Mark Collinson,
Partner
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http://www.solarE-power.com
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Phone :
+1-310-954-1343
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Email : mark.collinson@ccgir.com
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www.ccgirasia.com
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SOURCE Solar EnerTech Corp.