Quarterly reports are coming in, giving investors a better picture as to which companies are best suited to survive tough economics in the year ahead.
U.S solar company First Solar (Nasdaq: FSLR) is the undisputed superstar this week. The company raised its net income by about $0.50 per share, despite a slight decrease in quarter-to-quarter profits. The company makes photovoltaic solar panels using cadmium telluride, as opposed to the more commonly used silicon. These types panels are less expensive to produce and have not been affected by pressures in the silicon market. First Solar was able to increase its profit margin from 53.9% to 56.3%, for net income of $164 million for the quarter.
Domestic rival SunPower (Nasdaq: SPWRA) did not fare so well, posting an unexpected net loss. SunPower’s revenue for 1Q09 fell off sharply to $214 million, compared to $401 million in the previous quarter and $274 million a year ago. The company’s net loss was $2.5 million, or $0.06 per share, compared with a net profit of $14.7 million a year ago. Chief Executive Tom Werner said it was the "most challenging quarter" since the company went public in 2005. The company cut its revenue forecast for the year by about $300 million dollars.
Silicon wafer maker MEMC (NYSE: WFR) also reported a tough quarter, with sales that were half what they were a year ago. The company still managed to turn a profit of $19.7 million, but that’s down from $259 million in the previous quarter and $193 million a year ago. The company’s President and CEO Ahmad Chatila said they have cut staff and that they are in a strong position with $1.3 billion in cash and investments and essentially no debt.
Novozymes (NVZ.L), a company that makes enzymes used in the biofuel industry among others, reported a small profit growth, despite trouble in the U.S. ethanol industry. Net profit for the quarter increased by 13% to roughly $53 million against $47 million a year ago. The company increased sales in the quarter by 5%, but reduced its outlook for sales growth through the end of the year.
Venture capital investments seem to be picking up.
Energy management firm CPower close a $10.68 million Series B round of financing. The New York-based company, formerly known as Consumer Powerline, offers a range of energy management programs including demand response capacity, energy efficiency and peak load management. The funding round was led by new investor Mayfield Fund.
Luxim Corp., a company developing solid-state plasma lighting, announced that it has raised $12 million from existing investors in a Series C funding round. The California-based company said its tiny quartz light bulbs containing gas plasma and metal hallides offer a 30% energy efficiency advantage over LEDs in high output applications. The company wants to market the technology, which it calls LIFI®, for street lights and stadiums. Luxim previously raised about $60 million from a group of investors including Sequoia Capital and DAG Ventures.
ETV Motors, an Israeli start-up developing electric vehicle propulsion technology, announced a $12 million Series A investment round. The round was led by The Quercus Trust and 21Ventures. The company is partnering with universities on technology that extend the range of electric vehicles. The company said it is focused on the combination of a micro-turbine and high-voltage lithium-ion batteries.
Chinese solar company Chint Solar announced that it raised $50 million in a round of funding led by Cybernaut Growth Fund and Shanghai Alliance Investment. Chint solar makes tandem-junction, thin-film solar modules. The company said the funding will support the launch of mass production by the second half of 2009. It aims to ramp up to a high production volume of 240 megawatts by the year of 2010.
In other solar news, California rooftop solar company Solyndra announced a partnership with Satcon (NASDAQ CM: SATC). Satcon is an industry leader in the production of solar inverters, which are necessary for converting the direct current produced by photovoltaic panels into alternating current. The two companies have agreed to begin marketing their products together as complete systems. Earlie this month Solyndra was the first U.S. renewable energy company to receive a loan guarantee from the Department of Energy.
Two german solar companies have merged to become one of the world’s largest providers of silcon-based, tandem-junction, thin-film solar modules. Sunfilm and Sontor will now operate together under the name Sunfilm. Sunfilm is owned by German solar giant Q-Cells (QCE.DE). Q-Cells will own 50% of the new joint venture. Other investors include Good Energies and Norwegian silicon wafer company Norsun. The new Sunfilm has a manufacturing capacity of 85 MW per year, with another 60 MW under construction.
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