North Coast Solar Stocks

May 7, 2009

Entech Solar, Inc. Announces First Quarter Results

Filed under: ENSL — Tags: , , , , , — Jason @ 8:00 am

Strategy in Place for Next Generation Products

Thursday May 7, 2009, 8:00 am EDT

FORT WORTH, Texas–(BUSINESS WIRE)–Entech Solar, Inc. (ENSL.OB) (the “Company”) a leading developer of concentrating photovoltaic (CPV) solar energy systems, has announced its financial results for the three months ended March 31, 2009.

Operational Highlights:

* The Company has suspended manufacturing operations of its first-generation CPV products to focus all of its resources on its next generation of solar concentrating modules for expanded rooftop and other customer-driven applications.
* Entech Solar is leveraging its proprietary SolarVolt™ and ThermaVolt™ technology and know-how to form the foundation for these next generation products, which are being developed by a team of highly qualified solar, electrical, mechanical, and process engineers and scientists, and will employ many proven industry-standard manufacturing processes and practices.
* Based on the decision to suspend manufacturing, the Company took a non-cash impairment charge of $6.8 million during its first quarter related to certain fair value adjustments to manufacturing equipment, inventory and leasehold improvements.
* The Company’s balance sheet remains strong, with cash on hand of $8.9 million at March 31, 2009. Management plans to complete the $3 million Rights Offering and intends to seek additional funding for growth through the equity capital markets.

“Entech Solar announced a significant change to its product development plan this past quarter that is designed to focus the Company on the most commercially viable development path for maximum market penetration,” said Frank Smith, CEO. “We are committed to commercializing our next generation CPV technology to improve upon our existing ThermaVolt and SolarVolt product lines as a key element in providing both hardware and turnkey, vertically-integrated energy solutions to our customers. We believe our new products will provide a more attractive value proposition, serve a wider market, and provide better returns for the Company and our shareholders going forward.”

Financial Results

Revenues for the first quarter of 2009 were $2.0 million, compared with $9.0 million reported in the first quarter of 2008. During the 2009 first quarter, the Company recorded a non-cash impairment charge of $6.8 million to reflect fair value adjustments of its manufacturing operations, after the decision was made to indefinitely suspend current production activities. In addition, the Company recorded a provision for doubtful accounts of approximately $1 million based on one customer’s inability to make required contractual payments. The 2009 first quarter also reflects other restructuring costs incurred in connection with the Company’s recently announced changes. Based on the items discussed above, the Company’s Net Loss for the first quarter of 2009 was $16.0 million, or $0.07 per share, compared with a loss of $7.3 million, or $0.04 per share, in the first quarter of 2008.

Conference Call

Entech Solar will host a conference call today at 10:00 a.m. (Eastern) to discuss its financial results and business outlook. During the conference call, the Company may discuss and answer one or more questions concerning business and financial matters and trends affecting the Company. The Company’s response to these questions, as well as other matters discussed during the call, may contain or constitute material information that has not been previously disclosed.

The conference call can be accessed by dialing 857-350-1602, conference ID #47561521. Simultaneous to this conference call, an audio webcast of the call will be available via a link on the Company’s website,

The audio webcast will be archived on the Company’s website, and investors will be able to access a replay of the conference call for thirty days by calling 617-801-6888, conference ID #14773662. The replay will be available approximately two hours after the conference call has concluded.

(In thousands, except per share data)

Three Months Ended

March 31,

2009 2008
Contract $ 1,097 $ 8,229
Equipment 143
Related party 597 775
Related party – former chairman 126
Total 1,963 9,004
Cost of Revenues:
Contract 827 10,222
Equipment 97
Related party 597 673
Related party – former chairman 142
Provision for loss on contracts 409
Manufacturing operations impairment 6,758
Total 8,421 11,304
Gross Profit (Loss):
Contract 270 (2,402 )
Equipment 46
Related party 102
Related party – former chairman (16 )
Manufacturing operations impairment (6,758 )
Total (6,458 ) (2,300 )
Operating Expenses:
Marketing, general and administrative expenses 9,445 5,204
Research and development expense 211 41
Total Operating Expenses 9,656 5,245
Loss from Operations (16,114 ) (7,545 )
Other income (expense)
Beneficial conversion and warrant amortization (32 )
Interest income 24 301
Total other income, net 24 269
Net Loss (16,090 ) (7,276 )
Net loss attributable to noncontrolling interest 127
Net loss attributable to Entech Solar, Inc. (15,963 ) (7,276 )
Accretion of preferred stock dividends – Series C (5 )
Net Loss attributable to Entech Solar, Inc. $ (15,963 ) $ (7,281 )
Net Loss attributable to Entech Solar, Inc. per Common Share (basic and diluted) $ (0.07 ) $ (0.04 )
Weighted Average Common Shares Outstanding used in Per Share Calculation (Basic and Diluted) 237,130 190,326
AS OF MARCH 31, 2009 AND DECEMBER 31, 2008
(In thousands, except share and per share data)

March 31, 2009

December 31, 2008
Current assets:
Cash and cash equivalents $ 8,898 $ 12,169
Accounts receivable – trade (net of allowance of $1,112 and $155 at March 31, 2009 and December 31, 2008, respectively) 552 1,971
Rebates receivable 1,458 115
Inventory (net of reserve of $2,845 and $1,112 at March 31, 2009 and December 31, 2008, respectively) 881 3,664
Costs and estimated earnings/losses in excess of billings 35 2,613
Escrow funds relating to contract performance 500 1,339
Prepaid expenses and deposits 528 964
Total Current assets 12,852 22,835
Advances on machinery and equipment 2,285
Property and Equipment (net of accumulated depreciation and net of impairment of $4,795 and $0 at March 31, 2009 and December 31, 2008, respectively) 3,317 5,969
Intangible and other assets
Other intangible assets, net 22,433 23,058
Goodwill 23,837 23,837
Other deposits 145 153
Total Assets $ 62,584 $ 78,137
Liabilities, Convertible Redeemable Preferred Stock and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses $ 3,694 $ 3,955
Customer deposits 20 20
Customer deposits – related party 1,023
REC guarantee liability, current portion 60 60
Series D Preferred Stock Warrants 1,394 1,394
Billings in excess of costs and estimated earnings/losses 354 760
Accrued losses on construction in progress 38 101
Total Current liabilities 5,560 7,313
Serverance payable, long term 494
REC guarantee liability, net of current portion 180 180
Total Liabilities 6,234 7,493
Convertible redeemable preferred stock
Series C convertible redeemable preferred stock 170
Series D convertible redeemable preferred stock 11,180 11,180
Total Convertible redeemable preferred stock 11,180 11,350
Stockholders’ Equity

Preferred stock convertible $.01 par value authorized 10,000,000; 5,503,968 issued and outstanding: Series B 7%- 611,111 shares liquidation preference $550,000

6 6
Common stock, $.001 par value; authorized 450,000,000; 238,119,959 and 236,420,779 shares issued at March 31, 2009 and December 31, 2008, respectively; 238,092,091 and 236,392,911 shares outstanding at March 31, 2009 and December 31, 2008, respectively 238 236
Additional paid-in capital 169,773 167,979
Treasury stock, 27,868 shares, at cost, as of March 31, 2009 and December 31, 2008, respectively (39 ) (39 )
Accumulated deficit (124,851 ) (108,888 )
Noncontrolling interest 43
Total Stockholders’ Equity 45,170 59,294
Total Liabilities, Convertible Redeemable Preferred Stock and Stockholders’ Equity $ 62,584 $ 78,137

* Derived from audited financial information


Entech Solar, Inc.
Jessica Bloomgarden
Investor Relations:
Chris Witty, 646-438-9385

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