North Coast Solar Stocks

May 11, 2009

Energy Conversion Devices Reports Revenues of $66 Million and Earnings Per Share of $0.03 for Third Quarter of Fiscal 2009

Filed under: ENER — Tags: , , , , , — Jason @ 7:00 am

Monday May 11, 2009, 7:00 am EDT

– Market Headwinds Continue, Cutting Back Costs and Production

– Company Maintains Focus on Demand Creation, Positioning for Future Growth

ROCHESTER HILLS, Mich., May 11 /PRNewswire-FirstCall/ — Energy Conversion Devices, Inc. (ECD) (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 its third quarter of fiscal 2009, ended March 31, 2009.

Total consolidated revenues for the quarter were $66.0 million, compared to $70.0 million in the third quarter of fiscal 2008 and $103.1 million in the second quarter of fiscal 2009. Solar product sales were $59.7 million compared to $64.9 million in the same quarter last year, and $97.3 million in the second quarter of fiscal 2009.

Net income for the third quarter was $1.3 million or $0.03 per fully diluted share compared to net income of $7.0 million or $0.17 per fully diluted share in the year-ago period. This compares to net income of $14.2 million or $0.33 per fully diluted share in the second quarter of fiscal 2009.

Third quarter net income and per-share figures include preproduction costs of $1.3 million or $0.03 per share, and restructuring costs of $139,000 or less than $0.01 per share. Gross margin on solar product sales in the third quarter was 29.2 percent and consolidated gross margin was 31.6 percent. United Solar Ovonic produced 33.3 MWs of solar laminates in the third quarter.

For the nine months ended March 31, 2009, total consolidated revenues were $264.9 million compared to $173.5 million in the prior year. Solar product sales were $246.4 million for the first nine months of fiscal 2009 compared to $154.5 million for the prior year. Net income for the first nine months of fiscal 2009 was $28.2 million or $0.66 per fully diluted share versus a net loss of $6.0 million or a net loss of $0.15 per fully diluted share in the year-ago period. Cumulative net operating cash flow for the first nine months of fiscal 2009 was $33.7 million versus $12.5 million during the first nine months of fiscal 2008.

Mark Morelli, ECD’s president and chief executive officer said, “The global market continues to be difficult, with the biggest challenge being the sufficiency of project financing and our customers’ continued access to capital. We are actively managing our business through this uncertain period by focusing on demand creation, preservation of capital, and reduction of costs. We are also working more closely with our downstream partners so that we are well-positioned for continued growth as the economy recovers.”

Conference Call / Webcast Details

Management of Energy Conversion Devices will review these financial results on a conference call on Monday, May 11, 2009, 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 97059907. 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 http://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., May 13, 2009, and can be accessed by dialing 800-642-1687 or 706-645-9291 (international), with conference ID number 97059907. The webcast will also be archived on the company’s website.

                  ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                       -------------------------------------
                       (In thousands, except per share data)
                                    (Unaudited)
                                    ----------

                                    Three Months Ended     Nine Months Ended
                                          March 31,             March 31,
                                      2009        2008      2009        2008
                                      ----        ----      ----        ----
    REVENUES
      Product sales                $60,190     $65,367  $248,978    $159,391
      Royalties                      1,477       1,537     4,365       4,044
      Revenues from product
       development agreements        3,967       2,691    10,316       8,490
      Other revenues                   372         387     1,220       1,548
                                       ---         ---     -----       -----
    TOTAL REVENUES                  66,006      69,982   264,879     173,473

    EXPENSES
      Cost of product sales         42,693      45,296   167,284     122,109
      Cost of revenues from product
       development agreements        2,451       1,863     6,974       5,391
      Product development and
       research                      2,424       1,653     6,568       7,699
      Preproduction costs            1,325         751     5,133       5,575
      Selling, general and
       administrative               12,314      12,461    43,742      37,080
      Loss on disposal of assets       677         -       1,086         -
      Restructuring charges            139       2,386       574       7,457
                                       ---       -----       ---       -----
    TOTAL EXPENSES                  62,023      64,410   231,361     185,311
                                    ------      ------   -------     -------

    INCOME (LOSS) FROM OPERATIONS    3,983       5,572    33,518     (11,838)

    OTHER (EXPENSE) INCOME
      Interest income                  712       1,508     4,783       6,037
      Interest expense              (2,268)        (66)   (7,860)        (66)
      Other nonoperating expense
       (net)                          (552)         (3)   (1,392)        (57)
                                     -----         ---   -------        ----
    TOTAL OTHER (EXPENSE) INCOME    (2,108)      1,439    (4,469)      5,914
                                   -------       -----   -------       -----
    NET INCOME (LOSS) BEFORE
     INCOME TAXES                    1,875       7,011    29,049      (5,924)
    Income Taxes                       549          37       822          95
                                       ---          --       ---          --
    NET INCOME (LOSS)               $1,326      $6,974   $28,227     $(6,019)
                                    ======      ======   =======    ========
    Basic Net Income (Loss) Per
     Share                            $.03        $.17      $.67       $(.15)
    Diluted Net Income (Loss) Per
     Share                            $.03        $.17      $.66       $(.15)

                ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                          ---------------------------
                               (In thousands)
                                  ASSETS
                                  ------
                                               March 31,        June 30,
                                                 2009            2008
                                                 ----            ----
                                             (Unaudited)
    CURRENT ASSETS
      Cash, including cash equivalents of
       $244,877 at March 31, 2009 and
       $468,361 at June 30, 2008              $260,176        $484,492
      Short-term investments                    79,667          14,989
      Accounts receivable (net)                 61,609          53,525
      Inventories                               66,274          31,337
      Assets held for sale                       1,358           1,539
      Other                                      6,258           4,130
                                                 -----           -----
    TOTAL CURRENT ASSETS                       475,342         590,012

    PROPERTY, PLANT AND EQUIPMENT
      Buildings and improvements                84,321          58,913
      Machinery and other equipment            340,210         253,424
      Assets under capitalized leases           26,518          26,822
                                                ------          ------
                                               451,049         339,159
      Less accumulated depreciation and
       amortization                            (81,897)        (60,877)
                                              --------        --------
    NET DEPRECIABLE ASSETS                     369,152         278,282
      Land                                       1,526           1,157
      Construction in progress                 223,159         124,680
                                               -------         -------
    TOTAL PROPERTY, PLANT AND EQUIPMENT        593,837         404,119
    LONG-TERM INVESTMENTS                       34,079          32,277
    OTHER ASSETS                                14,281          15,559
                                                ------          ------
        TOTAL ASSETS                        $1,117,539      $1,041,967
                                            ==========      ==========

                  ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES
                            CONSOLIDATED BALANCE SHEETS
                            ---------------------------
                         (In thousands, except share data)
                       LIABILITIES AND STOCKHOLDERS' EQUITY
                       ------------------------------------

                                                      March 31,    June 30,
                                                        2009         2008
                                                        ----         ----
                                                    (Unaudited)
    CURRENT LIABILITIES
      Accounts payable and accrued expenses            $87,586      $39,017
      Salaries, wages and amounts withheld from
       employees                                         2,554        3,160
      Amounts due under incentive plans                    -          6,747
      Restructuring reserve                                410          831
      Deferred revenues                                     27          309
      Other liabilities                                  2,506        2,039
                                                         -----        -----
        TOTAL CURRENT LIABILITIES                       93,083       52,103

    CONVERTIBLE SENIOR NOTES                           316,250      316,250
    LONG-TERM RESTRUCTURING RESERVE                        361          414
    OTHER LONG-TERM LIABILITIES                         31,468       31,288
                                                        ------       ------
        TOTAL LIABILITIES                              441,162      400,055
                                                       -------      -------
    COMMITMENTS AND CONTINGENCIES                          -            -
    STOCKHOLDERS' EQUITY
      Common Stock, par value $0.01 per share:
      Authorized - 100,000,000 shares at March 31,
       2009 and at June 30, 2008
      Issued and outstanding - 45,754,652 shares at
       March 31, 2009 and 45,575,554 shares at June
       30, 2008                                            458          456
      Additional paid-in capital                       976,308      969,421
      Treasury stock                                      (700)        (700)
      Accumulated deficit                             (296,938)    (325,165)
      Accumulated other comprehensive loss              (2,751)      (2,100)
                                                       -------      -------
        TOTAL STOCKHOLDERS' EQUITY                     676,377      641,912
                                                       -------      -------
        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $1,117,539   $1,041,967
                                                    ==========   ==========

                 ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                                  (In thousands)
                                   (Unaudited)
                                   -----------

                                                       Nine Months Ended
                                                           March 31,
                                                      2009          2008
                                                      ----          ----
    OPERATING ACTIVITIES:
      Net income (loss)                             $28,227       $(6,019)
      Adjustments to reconcile net income (loss)
       to net cash provided by operating
       activities:
        Depreciation and amortization                23,632        15,059
        Provision for slow moving and obsolete
         inventory                                    6,616         1,793
        Stock-based compensation                      4,885         1,506
        Other-than-temporary impairment of
         investment                                     969           -
        Other                                         7,567         1,206
    Changes in working capital:
        Accounts receivable                         (13,084)       (8,398)
        Inventories                                 (41,674)        4,667
        Other assets                                   (125)       (1,632)
        Accounts payable and accrued expenses        17,584         5,689
        Restructuring reserve                          (594)       (1,374)
        Deferred revenues                              (282)          (17)
                                                      -----          ----
    NET CASH PROVIDED BY OPERATING ACTIVITIES        33,721        12,480
                                                     ------        ------
    INVESTING ACTIVITIES:
      Purchases of property, plant and equipment
       (including construction in progress)        (193,508)      (88,768)
      Purchases of investments                      (68,357)      (67,909)
      Proceeds from sales of investments              2,700       115,038
      Proceeds from maturities of investments           -          22,591
      Proceeds from sales of property, plant and
       equipment                                        -             392
                                                       ---            ---
    NET CASH USED IN INVESTING ACTIVITIES          (259,165)      (18,656)
                                                  ---------      --------
    FINANCING ACTIVITIES:
      Principal payments for assets under
       capitalized lease obligations                   (787)         (878)
      Proceeds from sale of stock and exercise of
       stock options, net of expenses                 1,966         7,039
                                                      -----         -----
    NET CASH PROVIDED BY FINANCING ACTIVITIES         1,179         6,161
                                                      -----         -----
    EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
     CASH EQUIVALENTS                                   (51)          (65)
                                                       ----          ----
    NET DECREASE IN CASH AND CASH EQUIVALENTS      (224,316)          (80)
    CASH AND CASH EQUIVALENTS AT BEGINNING OF
     PERIOD                                         484,492        80,770
                                                    -------        ------
    CASH AND CASH EQUIVALENTS AT END OF PERIOD     $260,176       $80,690
                                                   ========       =======

                 ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                                 (In thousands)
                                 --------------
                                   (Unaudited)

                                                        Nine Months Ended
                                                             March 31,
                                                        2009           2008
                                                        ----           ----
    SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
      Noncash transactions:
        Capital lease obligations to finance capital
          equipment                                        $-          $362
        Accounts payable to finance capital
          expenditures                                 $23,135           $-
        Auction rate securities rights                  $3,964           $-
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