Evergreen Solar Inc. (ESLR, Financial) filed Annual Report for the period ended 2010-12-31.
Evergreen Solar Inc. has a market cap of $69.6 million; its shares were traded at around $2 with and P/S ratio of 0.3. Evergreen Solar Inc. had an annual average earning growth of 21.9% over the past 5 years.
Our target is to reduce non-silicon process cost further, at commercial scale, to $0.13 per watt by the end of 2013, which is substantially less than the projections of Chinese manufacturers. With silicon consumption projected at 2.7 grams per watt or less as we further improve our process and reduce consumable materials costs, our fully loaded wafer costs are expected to be about $0.25 per watt in 2013, assuming silicon costs of $45 per kg . We believe our non-silicon process cost will ultimately be better than the best wafer manufacturers in the world because the non-silicon costs used in the manufacturing of String Ribbon wafers are lower than those used in ingot growing and wire slicing, including:
Under our technology licensing and sales support agreements with Sovello, we received royalty and sales fees of $16.7 million, $4.7 million and $4.4 million in 2008, 2009 and 2010, respectively. Until December 31, 2008, we marketed and sold all solar panels manufactured by Sovello under the Evergreen Solar brand, as well as managed customer relationships and contracts related to the sale of Sovello manufactured product. In 2009, Sovello began marketing and selling products under its own brand. Sovello continued to manufacture some Evergreen Solar-branded product in 2009, but, with its independent sales and marketing team now in place, our involvement in marketing and selling Sovello product had ceased.
On April 21, 2010, all of the outstanding shares of Sovello were sold to Rolling Hills S.à .r.l, an affiliate of Ventizz Capital Fund IV, L.P (Ventizz). In connection with the closing of the sale, our existing technology license agreements with Sovello were terminated and a new technology license agreement was entered into, allowing Sovello to continue using our wafer manufacturing technology to produce String Ribbon® solar panels. Under the terms of the new license agreement, Sovello agreed to pay us $2 million in royalties in 2010 and $3 million in each of the subsequent 2 years for its existing capacity (see Note 5 of our consolidated financial statements).
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Evergreen Solar Inc. has a market cap of $69.6 million; its shares were traded at around $2 with and P/S ratio of 0.3. Evergreen Solar Inc. had an annual average earning growth of 21.9% over the past 5 years.
Highlight of Business Operations:
We produce wafers today that are among the lowest cost in the industry. To illustrate this point, today our non-silicon processing costs in Devens are $0.35 per watt. This compares to $0.25 to $0.30 per watt for a large scale Chinese manufacturer today. Since we use about 3.6 grams of silicon today, and the rest of the industry generally uses 6 to 7 grams, our silicon cost is substantially lower. When our Wuhan facility reaches full operating metrics by late-2011, our non-silicon processing costs are expected to be about $0.23 per watt. This compares to an estimated $0.25 per watt for our still larger Chinese competitors, and then only the best of breed companies. Assuming silicon costs of $50 per kilogram, we expect to reduce our fully loaded wafer costs to $0.40 per watt in our small Wuhan facility, which compares to $0.55 per watt for our much larger competitors consisting of $0.30 per watt for silicon and $0.25 per watt for processing.Our target is to reduce non-silicon process cost further, at commercial scale, to $0.13 per watt by the end of 2013, which is substantially less than the projections of Chinese manufacturers. With silicon consumption projected at 2.7 grams per watt or less as we further improve our process and reduce consumable materials costs, our fully loaded wafer costs are expected to be about $0.25 per watt in 2013, assuming silicon costs of $45 per kg . We believe our non-silicon process cost will ultimately be better than the best wafer manufacturers in the world because the non-silicon costs used in the manufacturing of String Ribbon wafers are lower than those used in ingot growing and wire slicing, including:
Under our technology licensing and sales support agreements with Sovello, we received royalty and sales fees of $16.7 million, $4.7 million and $4.4 million in 2008, 2009 and 2010, respectively. Until December 31, 2008, we marketed and sold all solar panels manufactured by Sovello under the Evergreen Solar brand, as well as managed customer relationships and contracts related to the sale of Sovello manufactured product. In 2009, Sovello began marketing and selling products under its own brand. Sovello continued to manufacture some Evergreen Solar-branded product in 2009, but, with its independent sales and marketing team now in place, our involvement in marketing and selling Sovello product had ceased.
On April 21, 2010, all of the outstanding shares of Sovello were sold to Rolling Hills S.à .r.l, an affiliate of Ventizz Capital Fund IV, L.P (Ventizz). In connection with the closing of the sale, our existing technology license agreements with Sovello were terminated and a new technology license agreement was entered into, allowing Sovello to continue using our wafer manufacturing technology to produce String Ribbon® solar panels. Under the terms of the new license agreement, Sovello agreed to pay us $2 million in royalties in 2010 and $3 million in each of the subsequent 2 years for its existing capacity (see Note 5 of our consolidated financial statements).
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