Evergreen Solar, Inc. (Nasdaq: ESLR announced financial results for the third quarter ended September 29, 2007.
The company reported significantly higher sales, higher margins, and smaller losses.
Product sales were to $15.4 million compared to $13.4 in Q207 and $36.2 million in Q306, which included $25.4 million of sales generated by EverQ, whose results were consolidated with Evergreen Solar until the ownership change in December 2006.
Total worldwide sales of String Ribbon product were $62.9 million, which includes $47.5 million of sales generated by EverQ, compared to $44.7 million in the Q207, including $31.3 million generated by EverQ.
EverQ’s new 60 MW facility shipped its first solar panel late in the second quarter and is expected to reach full capacity by the end of 2007, as scheduled.
Gross margin was $4.5 million, or 24.9%, including fees of $2.8 million related to the marketing and sale of EverQ panels by Evergreen Solar and royalty payments for Evergreen Solar’s technology contribution to EverQ. In Q207, gross margin was $3.4 million, or 22.3%, including EverQ fees of $2.0 million. In the Q306 gross margin was $5.7 million, or 15.7%, which included EverQ factory start-up costs.
Net loss was $3.7 million, or $0.04 per share, including $404,000 for Evergreen Solar’s portion of EverQ’s quarterly profit. In Q207 net loss was $7.5 million, or $0.09 per share, which included Evergreen Solar’s share of EverQ’s quarterly loss of $1.6 million due to start up of the second EverQ factory. In Q306 net loss was $5.6 million, or $0.08 per share.
“We continue to be relentless in pursuing process improvements in Marlboro that will be the basis for our Devens facility,” said Richard Feldt, CEO. “The performance of our new prototype Quad furnaces currently operating in Marlboro has been steadily improving and we expect that this generation of the Quad furnaces will meet all of our expectations when the new Devens facility reaches full capacity in early 2009, including an improvement in our factory-wide yield of approximately 10 percentage points.”
Guidance for Fourth Quarter 2007
Product revenue is expected to be in the range of $16-$16.5 million and fees from EverQ are expected to be in the range of $4-$4.5 million. Gross margin is expected to be in the range of 26-28%.
Operating expenses are expected to be in the range of $11.5-$12 million, including factory start-up costs of approximately $1.5 million.
Operating loss is expected to be $6-$6.5 million and net loss is expected to be in the range of $3.5-$4 million, or $0.04 per share, including approximately $1.5 million to $2.0 million of non-operating income and approximately $1.0 million of income from EverQ.
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