Evergreen Solar, Inc. (Nasdaq: ESLR), a manufacturer of solar power products, announced mixed financial results for the quarter ending March 29, 2008.
Product sales were $18.3 million for 1Q08, compared to $16.9 million for the 4Q07 and $12.6 million in 1Q07. Fees from EverQ, Evergreen Solar’s joint venture with Q-Cells A.G. and Renewable Energy Corporation ASA, were $4.7 million for 1Q08, compared to $5.3 million for 4Q07 and $1.5 million in 1Q07. Such fees consist of royalties associated with licensing Evergreen Solar’s String Ribbon technology and marketing and sales support provided by Evergreen Solar for EverQ product.
Gross margin was $7.7 million, or 33.6%, for 1Q08, compared to $6.2 million, or 28.1%, for 4Q07 and $2.8 million, or 20.1%, in 1Q07.
Net loss was $25,000 for 1Q08, compared to net income of $788,000, or $0.01 per share, for 4Q07 and a net loss of $6.2 million, or $0.09 per share, in 1Q07.
"Despite a difficult winter in our area, we made significant progress on the first 80 MW phase of our Devens facility over the last three months and expect to produce our first panels as scheduled in July." said Richard M. Feldt, Chairman, President and CEO of Evergreen Solar. We have also begun the 80 MW Phase II expansion of this site which we expect will be operational by early 2009. When Phase I reaches full production capacity of approximately 20 MW per quarter in 2009, we believe that we will achieve operational and bottom line profitability."
Revenue for 2Q08 is expected to be approximately $21.5 million to $22.5 million, including approximately $4.5 million of selling fees and royalty payments from EverQ.
Gross margin is expected to be in the range of 25.0% to 30.0%. Operating expenses are expected to be approximately $11.5 million excluding factory startup costs which are expected to be in the range of $9.5 million to $10.0 million. Operating loss is expected to be between $15.0 million and $15.5 million and net loss is expected to be approximately $12 million, or $0.10 per share.
About Evergreen Solar, Inc.
Evergreen Solar, Inc. develops, manufactures and markets solar power products using proprietary, low-cost manufacturing technologies. The company’s patented crystalline silicon technology, known as String Ribbon, uses significantly less silicon than conventional approaches. Evergreen Solar’s products provide reliable and environmentally clean electric power for residential and commercial applications globally.
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