Energy Conversion Devices Inc.
(ENER) recently reported unenthusiastic results for the fourth quarter. Adjusted loss per share of 5 cents was in line with the Zacks Consensus Estimate. This bucked the trend of 5 consecutive profitable quarters.
On a GAAP basis, the downslide was higher with a loss of $15.8 million or a loss per share of 37 cents in comparison to a net income of $9.9 million or EPS of 24 cents in the year-ago period. The disparity stemmed from unabsorbed overhead costs of $6.1 million (14 cents per share), restructuring costs of $1.7 million (4 cents per share), a write down of an asset held for sale of $1.2 million (3 cents per share) and other costs of $4.6 million (11 cents per share).
Energy Conversion’s revenues for the quarter fell to $51.4 million from $82.4 million in the year-ago quarter and $66.0 million in the sequential fiscal quarter. This was mainly due to lower solar product revenues, which crashed to $46.0 million from $77.0 million in the year-ago quarter and $59.7 million in the sequential quarter. Solar product sales were down due to lower commercial construction and deferral of projects on account of financing bottlenecks.
Energy Conversion expects revenues for the first quarter to be at par with the $51.4 million generated in the reported quarter. For the fiscal year, the company expects revenues to rise between 10% and 15% over its preceding year’s figure of $316.3 million. Energy Conversion expects production to be around 150MW for the fiscal year.
Energy Conversion is a technology, product development and manufacturing company. It is engaged in the invention, engineering, development, and commercialization of new materials, products and production technology in the fields of alternative energy technology and information technology. We maintain our short-term Underperform rating on the shares.
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