Evergreen Solar Reports Second Quarter Revenues of $84.5 Million
Devens Ships a Record 39.8 Megawatts. China Facility Begins Customer Certification as Expansion Remains on Schedule
Marlboro, Massachusetts, August 2, 2010 – Evergreen Solar, Inc. (NasdaqGM: ESLR), a manufacturer of String Ribbon® solar power products with its proprietary, low-cost silicon wafer technology, today announced financial results for the second quarter ended July 3, 2010.
Key accomplishments during the quarter were:
• Shipments increased to 39.8 MW from 35.4 MW in the first quarter 2010
• Total manufacturing cost decreased 4.9% to $1.94 per watt from $2.04 per watt in the first quarter of 2010
• Built first solar panels in China
“Operationally, our team is executing strongly to plan in both Devens and Wuhan. In Devens, we are now running at capacity and are focusing our attention to further cost reduction activities, as well as yield improvements. In Wuhan, we now have 25 quad furnaces in operation and a total of 53 installed. Initial yields are solid and reflect the strong training programs our staff in China completed with their United States colleagues,” stated Richard M. Feldt, Chairman, CEO and President. He added, “Our financial position is stronger. During the quarter, we completed a convertible note financing which enabled us to add $75 million of new capital to the company while also reducing our 4% convertible debt by $124.5 million. Together with our improved financial position, the replication of our world class manufacturing performance in the newly opened Wuhan facility will be essential to supporting the further expansion we have outlined for our operations in China in the year ahead.”
“Demand for Evergreen’s panels continues to be robust into the third quarter. In this environment, we are planning to produce about 45 megawatts for the quarter, including our initial ramp toward 25 megawatt per quarter capacity from Wuhan,” concluded Mr. Feldt.
Second Quarter 2010 Financial Results
Revenues for the second quarter of 2010 were $84.5 million, up 7.7% sequentially compared to 2010 first quarter revenues of $78.5 million. Average selling price for the second quarter of 2010 was $2.04 per watt down 7.7% from $2.21 per watt in the first quarter of 2010. The decline resulted primarily from the weaker Euro.
Gross margin for the second quarter of 2010 was 8.6%, compared to 7.7% in the first quarter of 2010. The increase in gross margin resulted primarily from an increase in royalties associated with the licensing of the company’s proprietary wafer technology.
Operating loss for the second quarter was $15.5 million, compared to $14.1 million for the first quarter of 2010. Operating loss in the second quarter of 2010 increased from the first quarter of 2010 due mainly to lower average selling prices and an increase in start-up costs associated with the ramp of the new China facility. These were partially offset by royalty revenue and a reduction in manufacturing costs.
Net loss for the second quarter of 2010 was $3.3 million compared to $23.9 million in the first quarter of 2010. Net loss in the second quarter of 2010 includes approximately $24.8 million of net gains on the early extinguishment of outstanding debt, $6.9 million of foreign exchange losses caused by the weakening Euro and a $3.2 million gain on the reversal of a portion of the Sovello impairment which occurred concurrent with its sale during the quarter.
Conference Call Information
Management will conduct a conference call at 8:30 a.m. (ET) tomorrow (August 3, 2010) to review the Company’s second quarter financial results and highlights. The call will be webcast live over the Internet and can be accessed by logging on to the “Investors” section of Evergreen Solar’s website, www.evergreensolar.com prior to the event. The call also can be accessed by dialing (888) 277-7128 or (913) 312-0861 (International) prior to the start of the call and refer to confirmation code 3754036. For those unable to join the live conference call, a webcast replay will be available from 11:00 a.m. (ET) on August 3, 2010 through 8:00 p.m. (ET) on August 20, 2010. To access the webcast replay, logon to the “Investors” section of Evergreen Solar’s website, www.evergreensolar.com.
About Evergreen Solar, Inc.
Evergreen Solar, Inc. develops, manufactures and markets String Ribbon® solar power products using its proprietary, low-cost silicon wafer technology. The Company’s patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar’s products provide reliable and environmentally clean electric power for residential and commercial applications globally. For more information about the Company, please visit www.evergreensolar.com. Evergreen Solar® and String Ribbon® are registered trademarks of Evergreen Solar, Inc.
Safe Harbor Statement
This press release includes statements regarding expectations, beliefs, strategies, goals, outlook and other non-historical matters. Any such statements are forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include but are not limited to statements about cost reduction activities, yield improvements, further expansion in China beyond the Wuhan operations currently being developed, demand for Evergreen Solar’s panels and the Company’s production forecast for the third quarter of 2010 and beyond. These forward-looking statements are neither promises nor guarantees and are subject to a number of risks and uncertainties that could cause the Company’s actual results to differ, including unexpected materials shortages or price increases, the difficulty of accurately forecasting the cost benefits from new technologies, new operational strategies and operational scaling, the possibility that the Company may be unable to fund future manufacturing expansions, the difficulty in forecasting customer demand in a volatile and uncertain market for the Company’s products, and other risks and uncertainties described in filings that the Company makes from time-to-time with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to update any forward looking statements.
CONTACT:
Evergreen Solar, Inc.
Michael McCarthy
Director – Investor Relations
mmccarthy@evergreensolar.com
Phone: 508-251-3261