Energy Conversion Devices Reports Loss, Stock At Five Year Low (ENER)
RECHARGE News
The company, based in Rochester Hills, Michigan, outside Detroit, says the loss reflects $13.6m for one-time charges tied to certain overhead costs, restructuring expenses, an inventory write-off and a sharp decline in commercial demand for solar panels. Project financing constraints also continued.
Fiscal fourth quarter revenue was $51.4m, down 38% from $82.4m a year earlier. In the full fiscal year, Energy Conversion posted a net income of $12.5m, or 29 cents a share, versus $3.9m, or 9 cents a share in the previous fiscal year. Revenue increased to $316.3m from $255.9m.
Company chief executive Mark Morelli says that fiscal year 2010 revenue will grow between 10% and 15% from levels in 2009, as the US economy recovers from a severe recession. Shipments will total about 150 megawatts in 2010, with higher volumes in the second half.
He cited the company’s "demand-creation strategy" and the integration of recently acquired Solar Integrated Technologies as "key ingredients of our plan to return to profitability."
Investors sent the stock down to an intra-day low of $11.70, its lowest price since August 2004.
