North Coast Solar Stocks

November 9, 2009

Entech Solar Announces 2009 Third Quarter Results

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

8:00 am EST, Monday November 9, 2009

FORT WORTH, Texas–(BUSINESS WIRE)–Entech Solar, Inc. (ENSL.OB) (the “Company” or “Entech Solar”), with plans to become a leading developer of renewable energy technologies, today announced its financial results for the quarter ended September 30, 2009.

Third Quarter Operational Highlights

* ThermaVolt™ II: The Company completed the assembly and test of multiple working modules using its proprietary concentrating photovoltaic (PV) and thermal technology, and has started the next crucial phase in the product’s development – design-verification-testing (DVT). DVT allows Entech Solar’s engineers and scientists to test and validate the performance and quality of the modules prior to the commencement of independent third-party product certification. ThermaVolt II modules, which produce both electricity and hot water, have the same length and width dimensions (form factor) as industry-standard PV modules.
* SolarVolt™ II: Entech Solar announced plans to develop an electricity-only concentrating photovoltaic solar module. With a form factor similar to the ThermaVolt II module, this Concentrated Power Product (CPP) offers customers large-scale utility solutions.
* Tubular Skylight Lighting Solution: The Company completed the critical design review of its patented lighting solution product and the development of its go-to-market commercialization strategy. Product certification has started with independent third-party testing laboratories. The Company plans to begin selling this product in early 2010 with an initial launch in North Texas.

“I am pleased to update investors on Entech Solar’s product development progress. We received positive comments on our ThermaVolt II prototype module that was recently on exhibit at Solar Power International, North America’s largest solar industry conference in Anaheim, California,” said Dr. Frank Smith, Chief Executive Officer.

“We continue to advance our products through critical development and gate reviews. We expect ThermaVolt II to offer a compelling value proposition to the multi-billion dollar U.S. combined heat and power market with its dual output of electricity and thermal energy, standard manufacturing and competitive price point. The Company’s strategic goal is to be a leading developer of renewable energy technologies for the commercial, industrial and utility markets.”

Financial Results

As the Company completes its transition from the flat-plate solar installation business, revenues for the 2009 third quarter amounted to $75 thousand, compared with $6.5 million reported in the third quarter last year. The Company recorded a gross profit for the quarter ended September 30, 2009 of $3 thousand, versus a gross loss of $2.3 million in the prior-year period. The Company’s net loss attributable to common shareholders for the third quarter of 2009 was $4.7 million, or $(0.02) per share, versus a comparable loss of $7.4 million, or $(0.03) per share in the third quarter of 2008.

As of September 30, 2009, the Company’s cash and cash equivalents totaled $4.8 million, $2 million of which was provided by a related party loan from The Quercus Trust. This loan will be repaid upon completion of the previously announced rights offering.

Conference Call

Entech Solar will host a conference call at 10:00 a.m. Eastern on November 9, 2009 for the quarter ended September 30, 2009. During the call, Frank W. Smith, Chief Executive Officer, and Sandy J. Martin, Chief Financial Officer, will review the Company’s operations, business and financial matters. The telephone number for the conference call is 800-435-1261 domestically and 617-614-4076 internationally, with conference ID #69649664. A live webcast of the call will also be available on the company’s website, http://www.entechsolar.com.

The webcast will be archived on the site, and investors will be able to access an encore recording of the conference call for thirty days by calling 888-286-8010 domestically or 617-801-6888 internationally, with conference ID #21627169. The encore recording will be available two hours after the conference call has concluded.

ENTECH SOLAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(UNAUDITED)
(In thousands, except per share data)
Three Months Ended September 30, Nine Months Ended September 30,
2009 2008 2009 2008
Revenues:
Contract $ 49 $ 6,470 $ 1,296 $ 22,295
Equipment & Services 26 170
Related party 597 775
Related party – Former Chairman 125
Total 75 6,470 2,188 23,070
Cost of Revenues:
Contract 35 8,768 862 29,922
Equipment & Services 37 59
Related party 601 673
Related party – Former Chairman 142
Manufacturing operations impairment 6,968
Total 72 8,768 8,632 30,595
Gross Profit (Loss):
Contract 14 (2,298 ) 434 (7,627 )
Equipment & Services (11 ) 111
Related party (4 ) 102
Related party – Former Chairman (17 )
Manufacturing operations impairment (6,968 )
Total 3 (2,298 ) (6,444 ) (7,525 )
Operating Expenses:
Selling, general and administrative expenses 2,516 4,308 12,983 13,801
Depreciation and amortization 719 778 2,179 2,027
Research and development expenses 1,653 43 3,828 140
Total Operating Expenses 4,888 5,129 18,990 15,968
Loss from Operations (4,885 ) (7,427 ) (25,434 ) (23,493 )
Other income (expense)
Beneficial conversion and warrant amortization (50 )
Interest income 30 78 392
Interest expense (9 ) (9 )
Other income (expense) 99 103
Total other income (expense), net 90 30 172 342
Net Loss (4,795 ) (7,397 ) (25,262 ) (23,151 )
Net Loss attributable to noncontrolling interest 58 254
Net Loss attributable to Entech Solar, Inc. (4,737 ) (7,397 ) (25,008 ) (23,151 )
Accretion of preferred stock dividends – Series C (9 ) (18 )
Preferred stock dividends – Series F (15,512 )
Net Loss attributable to Entech Solar, Inc. Common Shareholders $ (4,737 ) $ (7,406 ) $ (25,008 ) $ (38,681 )
Net Loss attributable to Entech Solar, Inc. per Common Share (Basic and Diluted) $ (0.02 ) $ (0.03 ) $ (0.11 ) $ (0.19 )
Weighted Average Common Shares Outstanding used in
Per Share Calculation (Basic and Diluted) 239,127 235,044 238,144 206,415
ENTECH SOLAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008
(In thousands, except share and per share data)
September 30, 2009 December 31, 2008
(UNAUDITED) *
Assets
Current assets:
Cash and cash equivalents $ 4,795 $ 12,169
Accounts receivable – trade (net of allowance of $152 and $155
at September 30, 2009 and December 31, 2008, respectively) 252 1,971
Rebates receivable 115
Inventory (net of reserve of $2,632 and $1,112 at September 30, 2009
and December 31, 2008, respectively) 573 3,664
Costs and estimated earnings/losses in excess of billings 35 2,613
Escrow funds relating to contract performance 50 1,339
Prepaid expenses and deposits 314 964
Total Current assets 6,019 22,835
Advances on machinery and equipment 2,285
Property and Equipment, net 3,075 5,969
Intangible and other assets
Other intangible assets, net 21,183 23,058
Goodwill 23,837 23,837
Other deposits 145 153
Total Assets $ 54,259 $ 78,137
Liabilities, Convertible Redeemable Preferred Stock and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses $ 2,723 $ 4,076
Note Payable – related party 2,000
Customer deposits – related party 1,023
Renewable Energy Credit guarantee liability, current portion 29 60
Series D Preferred Stock Warrants 1,394 1,394
Billings in excess of costs and estimated earnings/losses 94 760
Total Current liabilities 6,240 7,313
Renewable Energy Credit guarantee liability, net of current portion 180 180
Total Liabilities 6,420 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 610,000,000
239,486,729 and 236,420,779 issued at September 30, 2009 and December 31, 2008, respectively; 239,458,861 and 236,392,911 shares outstanding at September 30, 2009 and December 31, 2008, respectively
239 236
Additional paid-in capital 170,433 167,979
Accumulated deficit (133,896 ) (108,888 )
Treasury stock, 27,868 shares, at cost, as of September 30, 2009 and
December 31, 2008, respectively (39 ) (39 )
Noncontrolling Interest (84 )
Total Stockholders’ Equity 36,659 59,294
Total Liabilities, Convertible Redeemable Preferred Stock and Stockholders’ Equity $ 54,259 $ 78,137
* Derived from audited financial information

Contact:

Entech Solar Media & Investor Relations:
Jessica Bloomgarden, 917-284-6397
jbloomgarden@entechsolar.com
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