Entech Solar, Inc. (OTC BB: ENSL.OB) (the “Company” or “Entech Solar”), with plans to become a leading developer of renewable energy technologies, today announced its financial results for the quarter ended September 30, 2009.
Third Quarter Operational Highlights
- ThermaVolt™ II: The Company completed the assembly and test of multiple working modules using its proprietary concentrating photovoltaic (PV) and thermal technology, and has started the next crucial phase in the product's development - design-verification-testing (DVT). DVT allows Entech Solar's engineers and scientists to test and validate the performance and quality of the modules prior to the commencement of independent third-party product certification. ThermaVolt II modules, which produce both electricity and hot water, have the same length and width dimensions (form factor) as industry-standard PV modules.
- SolarVolt™ II: Entech Solar announced plans to develop an electricity-only concentrating photovoltaic solar module. With a form factor similar to the ThermaVolt II module, this Concentrated Power Product (CPP) offers customers large-scale utility solutions.
- Tubular Skylight Lighting Solution: The Company completed the critical design review of its patented lighting solution product and the development of its go-to-market commercialization strategy. Product certification has started with independent third-party testing laboratories. The Company plans to begin selling this product in early 2010 with an initial launch in North Texas.
“I am pleased to update investors on Entech Solar's product development progress. We received positive comments on our ThermaVolt II prototype module that was recently on exhibit at Solar Power International, North America's largest solar industry conference in Anaheim, California,” said Dr. Frank Smith, Chief Executive Officer.
“We continue to advance our products through critical development and gate reviews. We expect ThermaVolt II to offer a compelling value proposition to the multi-billion dollar U.S. combined heat and power market with its dual output of electricity and thermal energy, standard manufacturing and competitive price point. The Company's strategic goal is to be a leading developer of renewable energy technologies for the commercial, industrial and utility markets.”
Financial Results
As the Company completes its transition from the flat-plate solar installation business, revenues for the 2009 third quarter amounted to $75 thousand, compared with $6.5 million reported in the third quarter last year. The Company recorded a gross profit for the quarter ended September 30, 2009 of $3 thousand, versus a gross loss of $2.3 million in the prior-year period. The Company's net loss attributable to common shareholders for the third quarter of 2009 was $4.7 million, or $(0.02) per share, versus a comparable loss of $7.4 million, or $(0.03) per share in the third quarter of 2008.
As of September 30, 2009, the Company's cash and cash equivalents totaled $4.8 million, $2 million of which was provided by a related party loan from The Quercus Trust. This loan will be repaid upon completion of the previously announced rights offering.
Conference Call
Entech Solar will host a conference call at 10:00 a.m. Eastern on November 9, 2009 for the quarter ended September 30, 2009. During the call, Frank W. Smith, Chief Executive Officer, and Sandy J. Martin, Chief Financial Officer, will review the Company's operations, business and financial matters. The telephone number for the conference call is 800-435-1261 domestically and 617-614-4076 internationally, with conference ID #69649664. A live webcast of the call will also be available on the company's website, www.entechsolar.com.
The webcast will be archived on the site, and investors will be able to access an encore recording of the conference call for thirty days by calling 888-286-8010 domestically or 617-801-6888 internationally, with conference ID #21627169. The encore recording will be available two hours after the conference call has concluded.
About Entech Solar
Entech Solar, Inc. is a leading developer of renewable energy technologies for the commercial, industrial and utility markets. Entech designs concentrating solar modules that provide both electricity and thermal energy as part of its ThermaVolt™ product line and electricity-only as part of the SolarVolt™ product line. The Company also develops a state-of-the-art tubular skylight that provides superior light output and optical efficiency for the commercial and industrial green buildings initiatives. For more information, please visit www.entechsolar.com.
Forward Looking Statements:
Except for historical information contained herein, this document contains forward-looking statements within the meaning of Section 21-E of the Securities Exchange Act of 1934. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Further, the Company operates in industries where securities values may be volatile and may be influenced by regulatory and other factors beyond the Company's control. Other important factors that the Company believes might cause such differences are discussed in the risk factors detailed in the Company's 10-K and its quarterly reports on Form 10-Q both as filed with the Securities and Exchange Commission, which include the Company's cash flow difficulties, dependence on significant customers, and rapid development of technology, among other risks. In assessing forward-looking statements contained herein, readers are urged to carefully read all cautionary statements contained in the Company's filings with the Securities and Exchange Commission.
ENTECH SOLAR, INC. AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenues: | ||||||||||||||||
Contract | $ | 49 | $ | 6,470 | $ | 1,296 | $ | 22,295 | ||||||||
Equipment & Services | 26 | - | 170 | - | ||||||||||||
Related party | - | - | 597 | 775 | ||||||||||||
Related party - Former Chairman | - | - | 125 | - | ||||||||||||
Total | 75 | 6,470 | 2,188 | 23,070 | ||||||||||||
Cost of Revenues: | ||||||||||||||||
Contract | 35 | 8,768 | 862 | 29,922 | ||||||||||||
Equipment & Services | 37 | - | 59 | - | ||||||||||||
Related party | - | - | 601 | 673 | ||||||||||||
Related party - Former Chairman | - | - | 142 | - | ||||||||||||
Manufacturing operations impairment | - | - | 6,968 | - | ||||||||||||
Total | 72 | 8,768 | 8,632 | 30,595 | ||||||||||||
Gross Profit (Loss): | ||||||||||||||||
Contract | 14 | (2,298 | ) | 434 | (7,627 | ) | ||||||||||
Equipment & Services | (11 | ) | - | 111 | - | |||||||||||
Related party | - | - | (4 | ) | 102 | |||||||||||
Related party - Former Chairman | - | - | (17 | ) | - | |||||||||||
Manufacturing operations impairment | - | - | (6,968 | ) | - | |||||||||||
Total | 3 | (2,298 | ) | (6,444 | ) | (7,525 | ) | |||||||||
Operating Expenses: | ||||||||||||||||
Selling, general and administrative expenses | 2,516 | 4,308 | 12,983 | 13,801 | ||||||||||||
Depreciation and amortization | 719 | 778 | 2,179 | 2,027 | ||||||||||||
Research and development expenses | 1,653 | 43 | 3,828 | 140 | ||||||||||||
Total Operating Expenses | 4,888 | 5,129 | 18,990 | 15,968 | ||||||||||||
Loss from Operations | (4,885 | ) | (7,427 | ) | (25,434 | ) | (23,493 | ) | ||||||||
Other income (expense) | ||||||||||||||||
Beneficial conversion and warrant amortization | - | - | - | (50 | ) | |||||||||||
Interest income | - | 30 | 78 | 392 | ||||||||||||
Interest expense | (9 | ) | - | (9 | ) | - | ||||||||||
Other income (expense) | 99 | - | 103 | - | ||||||||||||
Total other income (expense), net | 90 | 30 | 172 | 342 | ||||||||||||
Net Loss | (4,795 | ) | (7,397 | ) | (25,262 | ) | (23,151 | ) | ||||||||
Net Loss attributable to noncontrolling interest | 58 | - | 254 | - | ||||||||||||
Net Loss attributable to Entech Solar, Inc. | (4,737 | ) | (7,397 | ) | (25,008 | ) | (23,151 | ) | ||||||||
Accretion of preferred stock dividends - Series C | - | (9 | ) | - | (18 | ) | ||||||||||
Preferred stock dividends - Series F | - | - | - | (15,512 | ) | |||||||||||
Net Loss attributable to Entech Solar, Inc. Common Shareholders | $ | (4,737 | ) | $ | (7,406 | ) | $ | (25,008 | ) | $ | (38,681 | ) | ||||
Net Loss attributable to Entech Solar, Inc. per Common Share (Basic and Diluted) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.11 | ) | $ | (0.19 | ) | ||||
Weighted Average Common Shares Outstanding used in | ||||||||||||||||
Per Share Calculation (Basic and Diluted) | 239,127 | 235,044 | 238,144 | 206,415 | ||||||||||||
ENTECH SOLAR, INC. AND SUBSIDIARIES | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008 | |||||||||
(In thousands, except share and per share data) | |||||||||
September 30, 2009 | December 31, 2008 | ||||||||
(UNAUDITED) | * | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 4,795 | $ | 12,169 | |||||
Accounts receivable - trade (net of allowance of $152 and $155 | |||||||||
at September 30, 2009 and December 31, 2008, respectively) | 252 | 1,971 | |||||||
Rebates receivable | - | 115 | |||||||
Inventory (net of reserve of $2,632 and $1,112 at September 30, 2009 | |||||||||
and December 31, 2008, respectively) | 573 | 3,664 | |||||||
Costs and estimated earnings/losses in excess of billings | 35 | 2,613 | |||||||
Escrow funds relating to contract performance | 50 | 1,339 | |||||||
Prepaid expenses and deposits | 314 | 964 | |||||||
Total Current assets | 6,019 | 22,835 | |||||||
Advances on machinery and equipment | - | 2,285 | |||||||
Property and Equipment, net | 3,075 | 5,969 | |||||||
Intangible and other assets | |||||||||
Other intangible assets, net | 21,183 | 23,058 | |||||||
Goodwill | 23,837 | 23,837 | |||||||
Other deposits | 145 | 153 | |||||||
Total Assets | $ | 54,259 | $ | 78,137 | |||||
Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity | |||||||||
Current liabilities: | |||||||||
Accounts payable and accrued expenses | $ | 2,723 | $ | 4,076 | |||||
Note Payable - related party | 2,000 | - | |||||||
Customer deposits - related party | - | 1,023 | |||||||
Renewable Energy Credit guarantee liability, current portion | 29 | 60 | |||||||
Series D Preferred Stock Warrants | 1,394 | 1,394 | |||||||
Billings in excess of costs and estimated earnings/losses | 94 | 760 | |||||||
Total Current liabilities | 6,240 | 7,313 | |||||||
Renewable Energy Credit guarantee liability, net of current portion | 180 | 180 | |||||||
Total Liabilities | 6,420 | 7,493 | |||||||
Convertible redeemable preferred stock | |||||||||
Series C convertible redeemable preferred stock | - | 170 | |||||||
Series D convertible redeemable preferred stock | 11,180 | 11,180 | |||||||
Total Convertible redeemable preferred stock | 11,180 | 11,350 | |||||||
Stockholders' Equity | |||||||||
Preferred stock convertible $.01 par value authorized | |||||||||
10,000,000; 5,503,968 issued and outstanding: | |||||||||
Series B 7%- 611,111 shares liquidation preference $550,000 | 6 | 6 | |||||||
Common stock, $.001 par value; authorized 610,000,000 | |||||||||
239,486,729 and 236,420,779 issued at September 30, 2009 and December 31, 2008, respectively; 239,458,861 and 236,392,911 shares outstanding at September 30, 2009 and December 31, 2008, respectively | |||||||||
239 | 236 | ||||||||
Additional paid-in capital | 170,433 | 167,979 | |||||||
Accumulated deficit | (133,896 | ) | (108,888 | ) | |||||
Treasury stock, 27,868 shares, at cost, as of September 30, 2009 and | |||||||||
December 31, 2008, respectively | (39 | ) | (39 | ) | |||||
Noncontrolling Interest | (84 | ) | - | ||||||
Total Stockholders' Equity | 36,659 | 59,294 | |||||||
Total Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity | $ | 54,259 | $ | 78,137 | |||||
* Derived from audited financial information |
Contacts:
Entech Solar Media & Investor Relations:
Jessica
Bloomgarden, 917-284-6397
jbloomgarden@entechsolar.com