Evergreen Solar Inc. (ESLR, Financial) filed Quarterly Report for the period ended 2010-07-03.
Evergreen Solar Inc. has a market cap of $135.4 million; its shares were traded at around $0.6508 with and P/S ratio of 0.5. ESLR is in the portfolios of Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Selling, general and administrative expenses. Our selling, general and administrative expenses for the quarter ended July 3, 2010 were approximately $7.3 million, an increase of $607,000, or 9%, from $6.7 million for the quarter ended July 4, 2009. In general, our selling, general and administrative costs have increased as a result of our overall expansion of operations. These increases were primarily attributable to increased professional fees of approximately $615,000, much of which was in support of human resources and sales and marketing initiatives, and an increase in marketing communication costs of approximately $148,000. These were partially offset by lower compensation and related expenses of approximately $158,000, mainly the result of lower incentive compensation costs.
Other income (expense) net. Other income, net of $8.9 million for the quarter ended July 3, 2010 was comprised of approximately $24.8 million of gain recognized on the early extinguishment of a portion of our Senior Notes and approximately $1.1 million of interest income, offset by approximately $6.9 million of net foreign exchange losses that resulted from the weaker Euro and approximately $10.0 million in interest expense. Other net expense of $3.8 million for the quarter ended July 4, 2009 was comprised of approximately $6.8 million in interest expense which was offset by approximately $1.7 million of net foreign exchange gains and $1.3 million in interest income. The higher interest expense for the quarter ended July 3, 2010 is attributable to our higher debt obligations which, in the aggregate, increased by approximately $74 million since July 4, 2009 in addition to higher coupon rates on the new debt obligations. The increase in net foreign exchange losses was primarily due to the impact of the strengthening U.S. dollar during the second quarter of 2010 on our Euro denominated accounts receivable. The decrease in interest income is primarily attributable to the cessation of interest earned on our prior outstanding loans, including Sovello, offset by higher interest collected on past due accounts receivable and interest earned on our outstanding loans to Jiawei.
Revenues. Our product revenues for the year-to-date period ended July 3, 2010 increased 36% to $159.6 million from $117.1 million for the year-to-date period ended July 4, 2009. This increase in product revenues resulted from continued increases in sales volume generated from our Devens facility which began shipping product in the third quarter of 2008. During the year-to-date period ended July 3, 2010 we shipped approximately 75.2 MW compared to 40.5 MW for the year-to-date period ended July 4, 2009. This increase in volume was offset by significantly lower selling prices which have declined, on average, by approximately 26% since the second quarter of 2009 as a result of continued pricing pressures in the market place and, to a lesser extent, a slightly stronger U.S. dollar. Royalty revenue earned from Sovello for the year-to-date period ended July 3, 2010 was $3.4 million compared to $2.5 million for the year-to-date period ended July 4, 2009. As part of the sale of our investment in Sovello during the second quarter of 2010, we negotiated a new license agreement under which Sovello agreed to pay us $2 million in royalties in 2010 and approximately $3 million in each of the subsequent 2 years for the capacity that exists at Sovello. As a result, we recognized $1.0 million of royalty revenue during the quarter ended July 3, 2010. In addition, as part of the settlement of the sale of Sovello, we received approximately $2.4 million of royalty payments associated with the fourth quarter of 2009 which were not previously recognized due to the substantial doubt that existed at that time regarding Sovellos ability to settle the amount.
Selling, general and administrative expenses. Our selling, general and administrative expenses for the year-to-date ended July 3, 2010 were approximately $15.0 million, an increase of $1.9 million, or 15%, from $13.1 million for the year-to-date period ended July 4, 2009. In general, our selling, general and administrative costs have increased as a result of our overall expansion of operations. These increases were primarily attributable to increased compensation and related costs of approximately $298,000 associated with additional personnel and merit increases offset by lower incentive compensation costs, increased professional fees of approximately $847,000 in support of human resources and sales and marketing initiatives, increased legal fees of approximately $211,000 in support of our on-going operations and the sale of Sovello, an increase in marketing communication costs of approximately
Other income (expense) net. Other net expense of $943,000 for the year-to-date period ended July 3, 2010 was comprised of approximately $24.8 million of gain recognized on the early extinguishment of a portion of our 4% convertible debt and approximately $1.2 million in interest income. These amounts were offset by approximately $9.2 million of net foreign exchange losses and approximately $17.8 million in interest expense. Other net expense of $7.9 million for the year-to-date period ended July 4, 2009 was comprised of approximately $12.4 million in interest expense, offset by approximately $3.5 million in interest income and $982,000 of net foreign exchange gains. The increase in net foreign exchange losses was due to the steady strengthening of the U.S. dollar that occurred during the first half of 2010 primarily on our Euro denominated accounts receivable. The higher interest expense is attributable to our higher debt obligations which, in the aggregate, increased by approximately $74 million since July 4, 2009 in addition to higher coupon rates on the new debt obligations. The decrease in interest income is primarily attributable to the cessation of interest earned on our prior outstanding loans, including Sovello,
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Evergreen Solar Inc. has a market cap of $135.4 million; its shares were traded at around $0.6508 with and P/S ratio of 0.5. ESLR is in the portfolios of Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Revenues. Our product revenues for the quarter ended July 3, 2010 increased 29% to $81.1 million from $62.7 million for the quarter ended July 4, 2009. This increase in product revenues resulted from continued increases in sales volume generated from our Devens facility which began shipping product in the third quarter of 2008. During the quarter ended July 3, 2010, we shipped approximately 39.8 MW, compared to 23.2 MW for the quarter ended July 4, 2009. This increase in volume and, to a lesser extent the impact of a weaker U.S. dollar, was offset by lower selling prices which have declined, on average, by approximately 24% compared to the second quarter of 2009 as a result of continued pricing pressures in the market place. Royalty revenue earned from Sovello for the quarter ended July 3, 2010 was $3.4 million compared to $1.1 million for the quarter ended July 4, 2009. As part of the sale of our investment in Sovello during the second quarter of 2010, we negotiated a new license agreement under which Sovello agreed to pay us $2 million in royalties in 2010 and approximately $3 million in each of the subsequent 2 years for the capacity that exists at Sovello. As a result, we recognized $1.0 million of royalty revenue during the quarter ended July 3, 2010. In addition, as part of the settlement of the sale of Sovello, we received approximately $2.4 million of royalty payments associated with the fourth quarter of 2009 which were not previously recognized due to the substantial doubt that existed at that time regarding Sovellos ability to settle the amount.Selling, general and administrative expenses. Our selling, general and administrative expenses for the quarter ended July 3, 2010 were approximately $7.3 million, an increase of $607,000, or 9%, from $6.7 million for the quarter ended July 4, 2009. In general, our selling, general and administrative costs have increased as a result of our overall expansion of operations. These increases were primarily attributable to increased professional fees of approximately $615,000, much of which was in support of human resources and sales and marketing initiatives, and an increase in marketing communication costs of approximately $148,000. These were partially offset by lower compensation and related expenses of approximately $158,000, mainly the result of lower incentive compensation costs.
Other income (expense) net. Other income, net of $8.9 million for the quarter ended July 3, 2010 was comprised of approximately $24.8 million of gain recognized on the early extinguishment of a portion of our Senior Notes and approximately $1.1 million of interest income, offset by approximately $6.9 million of net foreign exchange losses that resulted from the weaker Euro and approximately $10.0 million in interest expense. Other net expense of $3.8 million for the quarter ended July 4, 2009 was comprised of approximately $6.8 million in interest expense which was offset by approximately $1.7 million of net foreign exchange gains and $1.3 million in interest income. The higher interest expense for the quarter ended July 3, 2010 is attributable to our higher debt obligations which, in the aggregate, increased by approximately $74 million since July 4, 2009 in addition to higher coupon rates on the new debt obligations. The increase in net foreign exchange losses was primarily due to the impact of the strengthening U.S. dollar during the second quarter of 2010 on our Euro denominated accounts receivable. The decrease in interest income is primarily attributable to the cessation of interest earned on our prior outstanding loans, including Sovello, offset by higher interest collected on past due accounts receivable and interest earned on our outstanding loans to Jiawei.
Revenues. Our product revenues for the year-to-date period ended July 3, 2010 increased 36% to $159.6 million from $117.1 million for the year-to-date period ended July 4, 2009. This increase in product revenues resulted from continued increases in sales volume generated from our Devens facility which began shipping product in the third quarter of 2008. During the year-to-date period ended July 3, 2010 we shipped approximately 75.2 MW compared to 40.5 MW for the year-to-date period ended July 4, 2009. This increase in volume was offset by significantly lower selling prices which have declined, on average, by approximately 26% since the second quarter of 2009 as a result of continued pricing pressures in the market place and, to a lesser extent, a slightly stronger U.S. dollar. Royalty revenue earned from Sovello for the year-to-date period ended July 3, 2010 was $3.4 million compared to $2.5 million for the year-to-date period ended July 4, 2009. As part of the sale of our investment in Sovello during the second quarter of 2010, we negotiated a new license agreement under which Sovello agreed to pay us $2 million in royalties in 2010 and approximately $3 million in each of the subsequent 2 years for the capacity that exists at Sovello. As a result, we recognized $1.0 million of royalty revenue during the quarter ended July 3, 2010. In addition, as part of the settlement of the sale of Sovello, we received approximately $2.4 million of royalty payments associated with the fourth quarter of 2009 which were not previously recognized due to the substantial doubt that existed at that time regarding Sovellos ability to settle the amount.
Selling, general and administrative expenses. Our selling, general and administrative expenses for the year-to-date ended July 3, 2010 were approximately $15.0 million, an increase of $1.9 million, or 15%, from $13.1 million for the year-to-date period ended July 4, 2009. In general, our selling, general and administrative costs have increased as a result of our overall expansion of operations. These increases were primarily attributable to increased compensation and related costs of approximately $298,000 associated with additional personnel and merit increases offset by lower incentive compensation costs, increased professional fees of approximately $847,000 in support of human resources and sales and marketing initiatives, increased legal fees of approximately $211,000 in support of our on-going operations and the sale of Sovello, an increase in marketing communication costs of approximately
Other income (expense) net. Other net expense of $943,000 for the year-to-date period ended July 3, 2010 was comprised of approximately $24.8 million of gain recognized on the early extinguishment of a portion of our 4% convertible debt and approximately $1.2 million in interest income. These amounts were offset by approximately $9.2 million of net foreign exchange losses and approximately $17.8 million in interest expense. Other net expense of $7.9 million for the year-to-date period ended July 4, 2009 was comprised of approximately $12.4 million in interest expense, offset by approximately $3.5 million in interest income and $982,000 of net foreign exchange gains. The increase in net foreign exchange losses was due to the steady strengthening of the U.S. dollar that occurred during the first half of 2010 primarily on our Euro denominated accounts receivable. The higher interest expense is attributable to our higher debt obligations which, in the aggregate, increased by approximately $74 million since July 4, 2009 in addition to higher coupon rates on the new debt obligations. The decrease in interest income is primarily attributable to the cessation of interest earned on our prior outstanding loans, including Sovello,
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