Source: Evergreen Solar Provider: SustainableBusiness.com News
Fourth Quarter Highlights:
* Appointed Richard M. Feldt President and Chief Executive Officer
* Expanded marketing, sales, and product development staff with three senior appointments
* Manufactured 50,000th solar panel incorporating the patented String Ribbon(TM) technology
Evergreen Solar, Inc. (Nasdaq: ESLR), a developer, marketer, and manufacturer of photovoltaic (solar power) products for the worldwide market, announced results for the fourth quarter and year ended December 31, 2003.
"Evergreen completed a $29.5 million private equity financing in May 2003 and is on track to expand manufacturing capacity fourfold," commented Richard M. Feldt, President and Chief Executive Officer. "During the second half of 2003, we made tangible progress on our Line 2 capacity expansion. By February 2004, at least the first piece of new equipment for each process step has been installed, with the remainder of the equipment to be phased in the over the course of the year. Since revenues have been capacity limited, this expansion should enable significant revenue growth in 2004 and should further improve our product gross margins."
"We are pleased with the progress made in 2003, exemplified by the manufacturing of our 50,000th solar panel and the 46% increase in product revenues. We strengthened our sales and marketing organization with three hires and are focused on expanding sales channels," commented Mark A. Farber, Vice President of Marketing and Business Development. "Recent governmental initiatives in Germany aimed at accelerating the adoption of solar for residential and commercial applications, combined with our proactive sales efforts, should position us well for increased sales growth in 2004."
For the three months ended December 31, 2003, product revenues were $1.4 million, a decrease of $469,000 from $1.8 million for the same period in 2002. The decline in product revenues was primarily the result of reduced manufacturing capacity from equipment and facilities modifications necessary for the installation of Line 2.
Research revenues for the fourth quarter were $213,000, a decrease of $151,000 from $364,000 for the same period in 2002. Product gross margin for the quarter ended December 31, 2003 was -220%, a decrease from -99% for the same period in 2002. The decline in gross margin was principally due to increased overhead costs associated with the scale-up of the second manufacturing line, the writedown of converted Line 1 equipment, and lower manufacturing volumes.
Operating loss for the fourth quarter was $5.3 million as compared to $3.7 million for the fourth quarter of 2002. Net loss attributable to common shareholders for the fourth quarter was $5.9 million, or $0.43 per share, which includes non-cash dividends earned by the Series A convertible preferred stockholders of $696,000. At December 31, 2003, cash, cash equivalents, and short-term investments totaled $20.3 million, compared to $8.5 million at December 31, 2002.
For the year ended December 31, 2003, product revenues were $7.7 million, an increase of $2.4 million from $5.3 million for 2002. The increased product revenues resulted from increased production volumes and selling activities. Research revenues were $1.6 million, an increase of $117,000 from $1.4 million for the twelve months ended December 31, 2002.
Product gross margin for the year ended December 31, 2003 was -99%, an improvement over -134% for the same period in 2002. Product gross margin improved due to increased volume and operational improvements in the manufacturing line.
Operating loss for the year ended December 31, 2003 was $15.2 million, an increase of $1.3 million from $13.9 million for the same period in 2002. The increase in operating loss was primarily due to increased depreciation expense associated with the Line 2 capacity scale-up and added selling, general, and administrative costs, partially offset by yield, throughput, and efficiency improvements in the current manufacturing operations.
A replay of the March 3 conference call will be available from March 3, 2004 — March 17, 2004. The replay dial-in numbers are (877) 519-4471 for domestic callers and (973) 341-3080 for international callers. Please use reservation code 4513807.
The webcast of the call will remain available on Evergreen Solar's web site, www.evergreensolar.com, through April 3, 2004.
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