Energy Conversion Devices (NASDAQ:ENER) reported its fourth quarter and full year results this morning, and the stock is up more than 2% in early trading. It’s no wonder. EPS of $0.24 beat estimates of $0.16, and revenues of $82.4 million crushed estimates of $77.47 million. Compared with the fourth quarter of 2007, revenues were up 129%, and EPS surged from a net loss of -$0.33/share.

For the full fiscal year, Energy Conversion increased revenues by 125%, from $113.6 million in 2007 to $255.9 million in 2008. And full-year EPS was reported at $0.10, up from a loss of -$0.64 in 2007.

Even better news came from the company’s guidance for the first quarter and fiscal year 2009. Energy Conversion expects revenues for the first quarter to reach $95-$98 million and between $455-$485 million for 2009. These projections also handily beat analysts estimates for the company.

Energy Conversion also expects to maintain gross margins of 31% for the first quarter and between 33% and 35% for the full year. Gross margins for the 2008 fourth quarter were 33.5% and for the full 2008 fiscal year, gross margins were 27%.

The company generates more than 95% of its revenues from its thin-film, flexible solar panels. Its sales pipeline jumped 50% in the fourth quarter, to $1.8 billion from $1.2 billion in the third quarter.

Energy Conversion does not yet have a huge project in its pipeline like competitor SunPower’s (NASDAQ:SPWR) 250 MW photovoltaic solar farm for PG&E (NYSE:PCG). The company is building a 12 MW rooftop array for General Motors (NYSE:GM) in Spain, and has announced to expand its capacity to 300 MW by the end of 2010.

What remains to be seen is the effect on all the solar companies of the expiration of the renewable energy investment tax credit, if the US Congress doesn’t do something quick. Given the current strength of the solar industry, even that loss might not curtail its growth.

Paul Ausick

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