Evergreen Loss Narrows

• By Zacks Equity Research
• On 10:21 am EST, Friday November 6, 2009

Massachusetts-based Evergreen Solar Inc. (NasdaqGM: ESLR - News) reported fiscal third-quarter loss per share of 6 cents, narrower than the Zacks Consensus Estimate of a loss 8 cents. This was less than half as compared to the year-ago loss of 13 cents per share. Earlier, the impact had come from rock bottom average selling prices (ASPs).   

 

In the reported quarter, Evergreen improved its manufacturing cost to $2.24 per watt from $2.70 per watt in the second quarter of fiscal 2009. Similarly, wafer manufacturing cost also fell to approximately 75 cents per watt from 85 cents per watt in the second quarter of fiscal 2009.

 

Evergreen clocked revenues of $77.7 million in the reported quarter, compared to $63.8 million in the previous quarter and $22.1 million in the year-ago quarter. Product sales for the quarter were $75.5 million while royalty and fee revenues were $2.2 million. Gross margin rose to 9.7% in the reported quarter from 1.9% in the prior quarter and 5.7% in the year ago quarter.

 

Operating loss reduced to $6 million in the reported quarter from $22.1 million in the year-ago quarter. However, in the reported quarter, the company absorbed a charge of $79.4 million for the write-down of its investment in the Sovello joint venture. As a result, net loss for the reported quarter escalated to $82.4 million from net loss of only $24.6 million in the year ago quarter.

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