LOS ANGELES, Nov 4 (Reuters) - U.S. solar company Evergreen Solar Inc on Wednesday posted revenue and a quarterly loss that were better than expected, as the company increased production and sold everything it produced.
Revenue rose to $77.7 million in the third quarter, topping the $73.86 million analysts had expected, according to Thomson Reuters I/B/E/S.
'I think they've been able to improve their costs, but they're still a whole lot higher than their Chinese competitors. It's incrementally better but I don't know if it changes anything,' said Macquarie analyst Kelly Dougherty.
Dougherty, who rates the company as 'underperform,' added that the company has challenges with its costs and liquidity where 'they're not leaving themselves much room for error.'
The company reported a third quarter net loss of $82.4 million, or 40 cents per share, compared with a net loss of $24.6 million, or 19 cents per share, a year ago.
Those results included a charge of about $70 million for a write-down in the company's Sovello joint venture.
Excluding that charge, Evergreen Solar had a net loss of 6 cents per share, which beat the loss of 8 cents per share that analysts were expecting, according to Thomson Reuters I/B/E/S.
Evergreen's sequential shipments rose 35 percent to 31 megawatts in the third quarter and the company said that demand continues to be solid early in the fourth quarter.
The Marlboro, Massachusetts-based company makes solar equipment that turns sunlight into electricity and is banking that outsourcing to China will stem the flow of red ink.
Like other solar companies, Evergreen has been hit by a lack of financing for new projects and a glut of panels.
The company said it will start to move panel assembly from its Devens, Massachusetts facility to China in mid-2010, but will keep making solar wafers and cells at the U.S. facility.
The company said in the third quarter it cut its manufacturing cost by 17 percent to $2.24 per watt. The company's cost-target for 2012 is $1 per watt.
Shares of the company were flat in extended trade after rising slightly. The stock closed down 4 percent at $1.42 on Wednesday on the Nasdaq.
(Reporting by Laura Isensee; editing by Carol Bishopric, Bernard Orr) Keywords: EVERGREENSOLAR (laura.isensee@thomsonreuters.com; Los Angeles Bureau +213 380 2014) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Revenue rose to $77.7 million in the third quarter, topping the $73.86 million analysts had expected, according to Thomson Reuters I/B/E/S.
'I think they've been able to improve their costs, but they're still a whole lot higher than their Chinese competitors. It's incrementally better but I don't know if it changes anything,' said Macquarie analyst Kelly Dougherty.
Dougherty, who rates the company as 'underperform,' added that the company has challenges with its costs and liquidity where 'they're not leaving themselves much room for error.'
The company reported a third quarter net loss of $82.4 million, or 40 cents per share, compared with a net loss of $24.6 million, or 19 cents per share, a year ago.
Those results included a charge of about $70 million for a write-down in the company's Sovello joint venture.
Excluding that charge, Evergreen Solar had a net loss of 6 cents per share, which beat the loss of 8 cents per share that analysts were expecting, according to Thomson Reuters I/B/E/S.
Evergreen's sequential shipments rose 35 percent to 31 megawatts in the third quarter and the company said that demand continues to be solid early in the fourth quarter.
The Marlboro, Massachusetts-based company makes solar equipment that turns sunlight into electricity and is banking that outsourcing to China will stem the flow of red ink.
Like other solar companies, Evergreen has been hit by a lack of financing for new projects and a glut of panels.
The company said it will start to move panel assembly from its Devens, Massachusetts facility to China in mid-2010, but will keep making solar wafers and cells at the U.S. facility.
The company said in the third quarter it cut its manufacturing cost by 17 percent to $2.24 per watt. The company's cost-target for 2012 is $1 per watt.
Shares of the company were flat in extended trade after rising slightly. The stock closed down 4 percent at $1.42 on Wednesday on the Nasdaq.
(Reporting by Laura Isensee; editing by Carol Bishopric, Bernard Orr) Keywords: EVERGREENSOLAR (laura.isensee@thomsonreuters.com; Los Angeles Bureau +213 380 2014) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
