- Operating Profitability Achieved in Second Half, Solar Gross Margin Sustained at 30+ Percent
- World's Largest 12MW Solar Rooftop Installation Confirms Leadership in BIPV/Rooftop Market
- Sales Pipeline Grows 50% to $1.8 Billion
ROCHESTER HILLS, Mich., Aug. 28 /PRNewswire-FirstCall/ -- Energy
Conversion Devices, Inc. (ECD) (Nasdaq: ENER), the leading global manufacturer
of thin-film flexible solar laminate products for the building integrated and
commercial rooftop markets, today announced financial results for the fourth
quarter and fiscal year ended June 30, 2008.
Total consolidated revenues for the quarter were $82.4 million, up 18
percent from third quarter revenues of $70.0 million, and 129 percent higher
than fourth quarter fiscal 2007 revenues of $36.0 million. Solar product sales
were $77 million, a 19 percent sequential increase and a 161 percent increase
over the prior-year quarter.
Net income for the fourth quarter was $9.9 million, or $0.24 per share,
compared to net income of $7.0 million, or $0.17 per share, in the third
quarter of fiscal 2008, and a net loss of $13.1 million, or $0.33 per share,
in the year-ago period.
Gross margin on product sales in the solar business was 33.5 percent in
the fourth quarter, compared with 30.7 percent in the third quarter. United
Solar Ovonic produced 26.2 MWs in the fourth quarter and 73.6 MWs for the
fiscal year. As of June 30, 2008, the solar product sales pipeline was $1.8
billion, as compared to $1.2 billion at the end of the fiscal third quarter.
Mark Morelli, ECD's president and chief executive officer, said, 'During
fiscal 2008, we focused on operational excellence, and successfully built a
strong foundation for sustained long-term growth. For example, fourth quarter
solar gross margin improved to 33.5 percent compared with 15.8 percent last
year. SG&A as a percent of revenue in the fourth quarter declined to 16.9
percent from 30.8 percent a year ago. As a result, we achieved profitability
from operations for the second half of fiscal 2008.'
Mr. Morelli added, 'Fiscal 2008 marked a major transition in ECD's
history, as the company generated positive operating cash flow of $28.5
million during the year, a significant improvement from the negative $21.8
million in fiscal 2007. We also completed an important capital raise that will
allow us to fund our expansion to 1GW of capacity by the end of fiscal 2012.
The selection of UNI-SOLAR to power the world's largest rooftop solar
installation validates our continued success at selling UNI-SOLAR's
differentiated value proposition into new and expanding markets and
distribution channels in the rooftop and building-integrated PV markets. I am
confident that our growth and momentum will continue into fiscal 2009 and
beyond.'
Fiscal Year Results
For fiscal 2008, total consolidated revenues were $255.9 million compared
with $113.6 million for fiscal 2007, an increase of 125 percent. Solar product
sales totaled $231.5 million in fiscal 2008, a 154 percent increase compared
with $91.2 million last year. For fiscal 2008, the company reported net income
of $3.9 million, or $0.10 per share, compared to a net loss of $25.2 million,
or $0.64 per share in fiscal 2007.
The company's cash, cash equivalents, and short-term investments totaled
approximately $500 million at the end of the fiscal year, reflecting the net
proceeds of $405 million from the issuance of the company's convertible senior
notes and common stock in June 2008. Common shares outstanding at June 30,
2008 were 45,575,554, however, as the company loaned 3,444,975 shares of its
common stock to Credit Suisse International, pursuant to a share lending
agreement, the shares used for the calculation of shares outstanding for the
full year were 40,231,379 for basic and 41,137,849 for diluted shares.
First Quarter and Fiscal Year 2009 Guidance
Total consolidated revenues are expected to be between $95 and $98 million
for the fiscal first quarter ending September 30, 2008, and between $455 and
$485 million for fiscal 2009. Solar product sales for the first quarter are
expected to be $89 to $91 million and $430 to $450 million for fiscal 2009.
For the first quarter, gross margin is expected to be about 31 percent, and
between 33 and 35 percent for the second half of the fiscal year.
Restructuring costs are expected to be between $1.7 and $2.0 million for the
first quarter and $2.5 to $3.0 million for fiscal 2009. Preproduction costs
are expected to be between $1.5 and $1.9 million for the first quarter and
between $7.0 and $9.0 million for fiscal 2009.
Conference Call / Webcast Details
Management of Energy Conversion Devices will review these financial
results on a conference call on Thursday, August 28, 2008, at 10:00 a.m. ET.
The dial-in number for the live audio call is 877-858-2512 or 706-634-6076
(international) with conference ID number 60981223. The conference call will
be webcast live over the Internet and can be accessed in the Investor
Relations -- Conference Calls -- section of the company's website at
www.ovonic.com
An audio replay of the call will be available approximately two hours
after the conclusion of the call. The audio replay will remain available until
11:59 p.m., September 1, 2008, and can be accessed by dialing (800) 642-1687
or (706) 645-9291 (international), with conference ID number 60981223. The
webcast will also be archived on the company's website.
About Energy Conversion Devices
Energy Conversion Devices, Inc. (ECD) (Nasdaq: ENER) is the 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's UNI-SOLAR(R) brand products are unique because
of their flexibility, light weight, ease of installation, durability, and
real-world efficiency.
