Energy Conversion Devices, Inc. (ECD) (Nasdaq: ENER), a manufacturer of thin-film flexible solar laminate products for the building integrated and commercial rooftop markets reached profitability in the quarter ending March 31, 2008, an indication that the market for building integrated solar products is on the rise.
The company reported net income of $7.0 million, or $0.17 per share, for its 3Q08, compared to net loss of $5.4 million in 2Q08 and a net loss of $6.9 million a year ago.
Total consolidated revenues for the quarter were $70 million, up 24% from second quarter revenues of $56.4 million, and 155% higher than 3Q07 revenues of $27.4 million. Solar product sales were $64.9 million, a 31% sequential increase and a 193% increase over the prior-year quarter.
Mark Morelli, ECD’s president and CEO, commented, "I’m pleased to report that we’ve reached profitability, and we’ve done so through sustainable changes to our business. This is a key milestone in our company’s history, and a testament to the commitment and hard work of our colleagues."
The company confirmed its plans to expand and add 120MW of additional nameplate capacity to its existing Greenville facilities. ECD will be able to internally fund this expansion through available funds and cash flow from operations. This previously announced expansion will increase the company’s nameplate capacity to approximately 300MW by the end of fiscal year 2010.
"Our focused efforts are achieving tangible results. These include profitability driven by operational improvements, a substantial increase in sustainable gross margin, and $6 million in positive operating cash flow for the fiscal third quarter. Demand for our products continues to exceed available supply, and we are emphasizing take-or-pay agreements which give us better forward visibility, while ensuring supply to our strategic channel partners. These changes have strengthened our current financial position, positioned us for future profitable growth and give us the flexibility to internally fund our new 120MW expansion," added Mr. Morelli.About Energy Conversion Devices
Energy Conversion Devices, Inc. (ECD) is a leader in building integrated and commercial rooftop photovoltaics, one of the fastest growing segments of the solar power industry. The company manufactures and sells thin-film solar laminates that convert sunlight to energy using proprietary technology. ECD also pioneers other alternative technologies, including a new type of nonvolatile digital memory technology that is significantly faster, less expensive, and ideal for use in a variety of applications including cell phones, digital cameras and personal computers.
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