Evergreen Solar Announces 2009 Second Quarter Results
Devens Factory Ships 23.2 MW, Up 34% Sequentially
Marlboro, Massachusetts, July 30, 2009 – Evergreen Solar, Inc. (NasdaqGM: ESLR), a manufacturer of String Ribbon™ solar power products has recently announced financial results for the second quarter ended July 4, 2009.
“We continue to ramp our production at Devens in line with market demand,” stated Richard M. Feldt, Chairman, CEO and President. “We shipped 23.2 MW at an average price of $2.70 per watt compared to the 17.3 MW sold at $3.13 per watt during the first quarter. The momentum we are building keeps us on track to achieve our $2.00 per watt goal when Devens reaches its 40 MW of quarterly capacity. Additionally, we are now identifying cost improvement programs that we believe will gradually take us to about $1.50 per watt at full factory capacity in the next two years.”
“Our financial and market positions are strong and, with our recently completed contract manufacturing agreement with Jiawei, 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,” concluded Mr. Feldt.
Second Quarter 2009 Financial Results
Revenues for the second quarter of 2009 were $63.8 million, including $1.1 million of fees from our Sovello joint venture, compared to $55.8 million for the first quarter of 2009, including $1.4 million of fees and $22.8 million for the second quarter of 2008, including $4.6 million of fees.
Gross margin for the second quarter of 2009 was 1.9%, compared to 1.2% for the first quarter of 2009 and 34.7% for the second quarter of 2008. The decrease from the prior year period was the result of lower selling prices, lower fees from the Sovello joint venture, and higher initial costs related to the ramp in production at Devens.
Net loss for the second quarter of 2009 was $20.3 million, or $0.11 per share, and includes on-going charges associated with our Marlboro pilot facility closure and Midland facility start-up costs of $1.5 million. Net loss for the second quarter also includes equity losses of $5.3 million, representing our share of losses incurred by Sovello during the quarter. Sovello losses increased substantially during the second quarter primarily due to lower sales volume and lower average selling prices. Weighted average shares outstanding for the second quarter increased as the result of our successful common stock offering, resulting in net proceeds of $72.8 million.
Net loss for the first quarter of 2009 was $64.3 million, or $0.40 per share, and includes charges of $43.9 million for the write-off of our loan receivable and related interest from a future silicon supplier, $3.5 million of facility start-up costs for the second phase of Devens and Midland string factory, and $1.8 million of on-going costs associated with the closure of the Marlboro pilot facility.
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