Evergreen Solar Reports Total Revenues Of $55.8 Million In Q1 2009

Published: 30-Apr-2009

By: Staff Writer Staff Writer Staff Writer

Evergreen Solar, Inc. (Evergreen Solar) has reported total revenues of $55.8 million for the first quarter of 2009, compared with the total revenues of $22.9 million in the year-ago quarter. It has also reported a net loss of $64.3 million, or $0.40 loss per share, for the first quarter of 2009, compared with the net loss of $25,000, or $0.00 loss per share, in the year-ago quarter.

First Quarter 2009 Financial Results:

Revenues for the first quarter of 2009 were $55.8 million, including $1.4 million of fees from Sovello joint venture, compared with $44.2 million for the fourth quarter of 2008, including $3.1 million of fees and $22.9 million for the first quarter of 2008, including $4.7 million of fees.

Gross margin for the first quarter of 2009 was 1.2%, compared with 4.6% for the fourth quarter of 2008 and 33.6% for the first quarter of 2008. The decrease from 2008 was due to lower average selling prices and lower fees from Sovello.

Net loss for the first quarter of 2009 includes charges of $43.9 million for the write-off of 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 plant, and $1.8 million of on-going costs associated with the closure of the Marlboro pilot facility.

Net loss for the fourth quarter of 2008 was $52.1 million, or $0.32 per share, and included charges of $23.1 million for the closure of the Marlboro pilot plant, $9.7 million of facility start-up costs for Devens and Midland and $8.0 million for the write-off of certain research and development equipment.

“The capacity expansion of our Devens facility remains on the original schedule that we established in the summer of 2007,” said Richard M. Feldt, chairman, chief executive officer and president. “For the first quarter of 2009, we produced 18.2 MW, more than double the 8.5 MW that we produced in the fourth quarter of 2008, and we sold 17.3 MW at an average selling price of $3.13 per watt compared with $3.39 per watt for the fourth quarter of 2008.”

“While we could meet our second quarter production goal of approximately 30 MW, softness in demand due to tight credit markets and uncertain economic conditions will likely result in production and sales volume of 20 MW to 25 MW,” continued Feldt.

“We still expect to have the capability to produce about 40 MW per quarter at Devens by the end of 2009 and achieve our target manufacturing costs of approximately $2 per watt at that production level,” Feldt concluded.

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