Evergreen Solar Inc. (Nasdaq: ESLR) is forecasting a wider loss for the second quarter because of an expected sharp decline in sales.
The company estimates the loss will range from $8-$8.3 million, or 10 cents per share. It includes about $1.3 million in startup costs for the German EverQ factory, which is slated to begin shipments in the second quarter.
The company expects revenue between $12.5-$13.5 million for the quarter. ESLR says it will reach profitability in 2009 or 2010.
A year ago, Evergreen reported a loss of $7.5 million, or 11 cents per share, on revenue of $22.4 million. On average, analysts expect Evergreen to post a loss of 8 cents per share on sales of $14.2 million in the second quarter.
Despite Evergreen’s announcements yesterday, including a new silicon contract and plant expansion, several analysts are cautious on the company’s long-term outlook. Because silicon supplies are expected to loosen up over the next year or two, ESLR’s technology advantage could disappear. Its ability to use less silicon to make a solar cell would have much less value in that environment, say the analysts.
Also to secure the 6-year silicon deal with DC Chemical, ESLR gave them $130M of stock, which dilutes the company by 21%.
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