Massachusetts-based Evergreen Solar, Inc. (NasdaqGM: ESLR), reported a net loss for the quarter ending June 28, 2008, as the company works to ramp up production in its new plant.
Net loss was $8.9 million for 2Q08, or $0.08 per
share, compared to a net loss of $25,000, for 1Q08
and a net loss of $7.5 million, or $0.09 per share, in 2Q07.
The sequential increase in the net loss was
principally due to costs related to the start-up of the Devens facility
and ramp down of the Marlboro site, which were $11.3 million in the
quarter, compared to $5.3 million in the first quarter, the company said.
Gross margin was $7.9 million, or 34.7%,
for 2Q08, compared to $7.7 million, or 33.6%, for 1Q08 and $3.4 million, or 22.3%, in 2Q07.
Product sales were $18.1 million for 2Q08,
compared to $18.3 million for 1Q08 and $13.4
million in 2Q07. Fees from EverQ, Evergreen
Solar’s joint venture with Q-Cells A.G. and Renewable Energy
Corporation ASA, were $4.6 million for 2Q08,
compared to $4.7 million for the first quarter of 2008 and $2.0 million
in 2Q07. These fees consist of royalties
associated with licensing Evergreen Solar’s String Ribbon technology
and reimbursement for marketing and sales support provided by Evergreen
Solar for EverQ product.
"We opened the first 80 MW phase of our Devens facility as
scheduled in early June and have produced over 350,000 wafers to date
using our new generation Quad wafer furnaces. We started with a green
field location in early September 2007 and opened this 300,000 square
foot facility in 9 months," said Richard M. Feldt, Chairman, President
and CEO. "Within days, we will begin cell and panel
production and expect that this phase of Devens will be near its full
capacity of about 20 MW per quarter in early 2009. The ramp down of our
Marlboro site to a pilot operation is going smoothly and the next 80 MW
Phase II expansion of Devens is progressing as planned."
"As a
result of typical inefficiencies that companies incur in the initial
stages of significant capacity changes, our gross margin will be
impacted for the remainder of the year, but will return to at least 30%
in early 2009," said Feldt.
Revenue for 3Q08 is expected to be approximately $24.5 million to $25.5 million, including approximately $4.5 million of selling fees and royalty payments from EverQ.
Gross margin is expected to be in the range of 6% to 8%.
Operating loss is expected to be between $18.5 million and $19.0 million. Net loss is expected to be approximately $12.5 to $13.0 million, or $0.10 per share.
About Evergreen Solar, Inc.
Evergreen Solar, Inc. develops, manufactures and markets String RibbonTM solar power products using its proprietary, low-cost wafer technology. The company’s patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar’s products provide reliable and environmentally clean electric power for residential and commercial applications globally.
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