Evergreen Solar Posts Revenue Increases

Evergreen Solar, a developer, marketer and manufacturer of photovoltaic (PV) products for the worldwide market, announced their results for the third quarter ending September 30, 2002.

Marlborough, Massachusetts – October 31, 2002 [SolarAccess.com] Among the third quarter highlights were product revenues that reached US$1.5 million, an increase of approximately 245 percent from the third quarter of 2001 and up 36 percent from the second quarter. Exports to the German market nearly quadrupled from the second quarter, and the marketing and sales organization expanded with the addition of European and U.S. sales managers. For the three months ending September 30, 2002, product revenues were US$1.5 million, an increase of US$1 million from US$424,000 for the same period in 2001. Research revenues for the third quarter were US$641,000, an increase of US$488,000 from US$153,000 for the same period of last year. Net loss for the third quarter of 2002 was US$2.7 million, or US$0.24 per share, as compared with a net loss of US$ 3.5 million, or US$ 0.31 per share, for the third quarter of 2001. At September 30, 2002, cash, cash equivalents, and short-term investments totaled US$13.5 million, compared to US$26.3 million on December 31, 2001 and US$18.0 million on June 30, 2002. Net fixed assets increased slightly to US$15.9 million from the second quarter of 2002. Capital expenditures for the quarter were US$788,000, the majority of which was spent on longer lead time equipment for their manufacturing expansion. For the nine months ended September 30, 2002, product revenues were US$3.4 million, an increase of US$2.7 million from US$782,000 for the same period in 2001. Research revenues for the nine months were US$1.1 million, an increase of US$253,000 from US$831,000 for the same period in 2001. Net loss for the first nine months of 2002 was US$9.6 million, an increase of US$930,000 from US$8.7 million for the same period in 2001. “Evergreen is focused on increasing revenues and lowering costs, and during the third quarter we produced record results on both objectives,” said Mark A. Farber, President and CEO of Evergreen Solar. “Sales growth was driven by stronger demand from our European customers, with exports to Germany increasing nearly fourfold. Since last year at this time, revenues have more than tripled and gross margins, while still negative according to plan, have improved more than 80 percent.” During the company’s conference call Wednesday, Farber indicated that over the six quarter period since Evergreen Solar had moved into its new Marlborough, Massachusetts facility, product sales have grown ten fold. Farber said increased sales to the German market contributed to the increased revenues. While growth in the German market may not necessarily be sustainable, Farber said the European market did offer a sustainable demand for Evergreen’s products. “We are delighted with our growing relationships in Europe,” said Farber. The European market makes up over 50 percent of Evergreen’s market, with U.S. sales at just less than 50 percent. Of that total market, over 90 percent was through grid-connected technology said Farber. “In addition to the operational progress made this quarter, we, along with Conservation Services Group, installed four 10 kW systems on BJ’s Wholesale Club stores on Long Island, under a program sponsored by the Long Island Power Authority. These installations will test an innovative business model to maximize the value of PV generated electricity by selling the electricity and the green attributes of the electricity separately.” Farber said incentive programs in a variety of U.S. states are greatly helping to support the market demand for solar systems. “The rebate programs are critical,” said Farber. “State by state programs are the driver for solar demand. Historically those states with rebates offer the greatest demand and we see that expanding beyond California.” “We also made excellent progress with the expansion of our manufacturing capacity,” said Farber. “Much of the panel assembly equipment for (our second line) has just been installed and will soon begin engineering qualifications. This equipment arrived on-time and under budget.”
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