Evergreen Solar Has Record Product Revenues

Evergreen Solar, a developer, marketer, and manufacturer of photovoltaic (PV) products for the worldwide market, announced results for the second quarter that ended June 30.

Marlboro, Massachusetts – August 1, 2003 [SolarAccess.com] For the three months, product revenues were $2.7 million, an increase of $1.6 million from $1.1 million for the same period in 2002. (All figures are in US dollars.) Research revenues for the second quarter were $508,000, an increase of $301,000 from $207,000 for the same period in 2002. Operating loss for the second quarter was $3.3 million as compared to an operating loss of $3.7 million for the second quarter of 2002. Net loss attributable to common shareholders for the second quarter was $15.4 million, or $1.35 per share, which includes accretion charges of $12.1 million. These accretion charges were primarily non-cash, non-recurring charges associated with the closing of the Series A Convertible Preferred Stock financing. At June 30, 2003, cash, cash equivalents, and short-term investments totaled $29.2 million, compared to $8.5 million at December 31, 2002. The $12.1 million accretion charge consisted of four components. A non-cash, non-recurring beneficial conversion charge of $10.3 million was reflected the difference between the issue price of the preferred stock and the higher market price of the common stock on the closing date. A non-cash, non-recurring charge of $525,000 represented the difference between the purchase price of the warrant and the calculated fair value of the warrant. An $849,000 non-recurring, cash charge included the legal, accounting, and investment advisory fees associated with the financing. In addition to the non-recurring charges, a $367,000 non-cash charge for in-kind, pro-rated preferred dividends was recorded during the second quarter. “The second quarter was a milestone quarter for us,” said Mark A. Farber, President and Chief Executive Officer of Evergreen Solar. “We had record product revenues attributable to the strong sales environment in Europe and record manufacturing volumes. Our gross product margin for the second quarter improved to 59.5 percent, relative to 159.6 percent in the prior year. We successfully completed the $29.5 million financing, which allows us to accelerate our Line 2 expansion. The most notable event for that expansion this quarter was the ordering of 100 double-ribbon String Ribbon furnaces, the first of which is expected to arrive during the fourth quarter. We believe this order, the largest single equipment order in our history, will provide the wafer capacity necessary for us to approximately quadruple our manufacturing capacity, and demonstrates our confidence in the double-ribbon technology as the foundation for the expansion.” The Company held a conference call to discuss its second quarter 2003 results on July 31. A replay of the call will be available from July 31 – August 14. The replay dial-in numbers are (800) 642-1687 for domestic callers, and (706) 645-9291 for international callers. Please use reservation code to 1701277. The webcast of the call will remain available on the Evergreen Solar web site through August 31.


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