North Coast Solar Stocks

July 30, 2009

Lower prices send Evergreen Solar profits tumbling

Filed under: ESLR — Tags: , , , , — Jason @ 5:20 pm

Evergreen Solar profits fall sharply, tough gross margins show slight uptick

Thursday July 30, 2009, 5:20 pm EDT

NEW YORK (AP) — Evergreen Solar’s (ESLR) loss more than doubled in the second quarter due to falling prices, the company reported Thursday.

The Marlboro, Mass.-based company reported losses of $20.3 million, or 11 cents per share, compared with a loss of $8.9 million, or 8 cents per share, during the same period last year.

Analysts surveyed by Thomson Reuters, expected a loss of 8 cents per share.

Revenues soared to $63.8 million, easily surpassing last year’s second-quarter revenue of $22.8 million and beat Wall Street expectations of $63.4 million in sales.

Alternative energy companies have operated in a difficult climate with credit markets tight.

“We remain confident in our ability to be well positioned when the industry returns to significant growth as fundamental structural issues like those facing global credit markets begin to resolve,” said Richard M. Feldt, chairman, CEO and president at Evergreen.

Analysts are paying closer attention to improvements from the first quarter, when many smaller companies were trying to hold out for any uptick in business.

Evergreen reported gross margins for the past three months were 1.9 percent, compared with 1.2 percent during the first three months of the year.

That was well below the 34.7 percent gross margin achieved last year in the second quarter, however.

The company cited lower selling prices and lower fees from its Sovello joint venture. It also cited higher costs related to greater production at its Devens facility.

Evergreen released its earnings after the market closed on Thursday. The company’s stock fell more than 7 percent, or 18 cents, to $2.20 in electronic trading.

Evergreen Solar Inc. makes silicon wafers used in solar panels.

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