The third fiscal quarter report from Energy Conversion Devices, Inc. (NASDAQ:ENER) showed EPS of $0.03, down from $0.17 in the same period a year ago and $0.33 sequentially, but above analysts’ estimates of $0.02. Revenue reached $66 million for the quarter, down from $70 million a year ago and $103.1 from last quarter. Analysts had been anticipating $68.88 million.
The company’s president and CEO noted that project financing and customers’ access to credit were the major challenges facing the company. Energy Conversion is “focusing on demand creation, preservation of capital, and reduction of costs.”
In a stab at creating demand, the company has joined up with a Belgian company, Enfinity NV, to develop about 10 megawatts of rooftop solar projects. Energy Conversion will “contribute” the PV solar panels in exchange for equity in the projects. Enfinity will manage the projects and “lead the financing efforts.” The two companies “expect to sell completed projects to third-party investors within 12 months of the start of commerical operation.”
The demand-creation strategy seems to be, “If we build it, they will come.” Also known as wishful thinking. But the strategy does try to draw attention away from last week’s lousy news.
Energy Conversion’s shares are off about 3% in pre-market trading, at $16.50. The company’s 52-week range is $12.85-$83.33.
Paul Ausick
May 11, 2009
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