Colorado-based Ascent Solar Technologies, Inc. (NASDAQ:ASTI) announced a change in strategy that will focus the company’s flexible thin-film solar module technology on applications for emerging and specialty markets like defense and off-grid charging.
In the past, Ascent has dedicated many of its resources to establishing a position in the building applied and building integrated photovoltaic markets (BAPV/BIPV). The company says the new market focus provides a clear path for the future and leverages the company’s unique strengths.
Producing solar modules that are lightweight and flexible gives Ascent the ability to meet specialty needs for markets like the military and defense; custom near-space applications; off-grid charging solutions in developing countries; power for portable electronics; and custom and standard products for rooftop integration on buses, trucks and trains.
Ascent believes it can sell its products in these markets at more attractive margins than are currently possible for ground mount applications or BIPV and BAPV markets.
The change in strategy will mean a change in leadership and layoffs.
"We want to assure shareholders, customers and partners that Ascent’s various BIPV/BAPV products are still important to our long-term growth and success. Consequently, we will continue selective business development, testing and certification for those products. A number of economic considerations, including the serious reduction of government subsidies in major markets in Europe, indicate that these markets will be under some near term pressure," said company Chairman, Dr. Amit Kumar.
"Therefore, in the near term, we will focus our manufacturing and sales activities on emerging, high-value, specialty market applications. Although our cash position is strong, we are taking steps to reduce staffing and operating costs that will minimize the company’s current cash burn rate and help to ensure our continued leadership in flexible thin-film solar technologies," Kumar added.
With the change in strategy, CEO Farhad Moghadam is stepping down. Ron Eller, an Ascent board member for the past two years, has been appointed the company’s new President and CEO. Eller previously ran various divisions in the enterprise businesses of Hewlett Packard and Compaq Computer Corporation.
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