Energy Conversion Devices Inc. (ENER, Financial) filed Quarterly Report for the period ended 2009-09-30.
Energy Conversion DevicesInc. is a leader in the synthesis of new materials and the development of advanced production technology and innovative products. The Company's business strategy has been to provide new and enabling technologies for use in the fields of alternative energy and information technologies. This strategy has produced inventions of uniqueproprietary and cost-effective products and production processes. Energy Conversion Devices Inc. has a market cap of $525.6 million; its shares were traded at around $11.49 with a P/E ratio of 17.15 and P/S ratio of 1.66.
Cost of product sales for the three months ended September 30, 2009 was $27.3 million, a decrease of $32.3 million or 54%, compared to the same period in 2008. The decrease was primarily due to reduced sales volume, which resulted in $31.9 million of reduced costs. Additional reductions, primarily related to lower raw material costs and improved efficiencies in our manufacturing processes, amounted to $4.5 million. These reductions were offset by $4.1 million of costs attributable to sales in our newly-acquired SIT business.
Selling, general and administrative expenses for the three months ended September 30, 2009 were $7.9 million, an increase of $1.2 million or 18%, compared to the same period in 2008. The increase was primarily due to increased support services of $1.0 million and incremental costs of $2.8 million associated with our newly-acquired SIT business, partially offset by a decrease in the allowance for doubtful accounts receivable of $2.5 million.
Other expense was $4.5 million for the three months ended September 30, 2009 compared to $1.9 million in the same period in 2008. The $2.6 million increase was principally due to $3.4 million of increased net interest expense which is related to the reduced level of capitalized interest, a $2.3 million reduction in interest income due to lower level of investments in the current period, offset by a $1.3 million distribution from our previously owned Cobasys joint venture, $1.2 million of reduced levels of investment losses realized in the current period and incremental foreign currency transaction gains of $0.7 million associated with our newly-acquired SIT business.
Net cash (used in) provided by operating activities decreased $52.4 million to $(25.9) million for the three months ended September 30, 2009 from $26.5 million for the three months ended September 30, 2008. This decrease was driven by a reduction in our net income (loss) adjusted for non-cash items of $22.2 million and by $30.2 million additional cash used for changes in net working capital, specifically due to increased inventory levels offset by a reduction in accounts receivable and payables.
Net cash provided by (used in) investing activities increased $74.8 million to $29.6 million for the three months ended September 30, 2009 from $(45.2) million for the three months ended September 30, 2008. This increase was principally due to reduced capital expenditures of $34.8 million and increased proceeds from maturities and sales of our investments of $41.1 million.
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Energy Conversion DevicesInc. is a leader in the synthesis of new materials and the development of advanced production technology and innovative products. The Company's business strategy has been to provide new and enabling technologies for use in the fields of alternative energy and information technologies. This strategy has produced inventions of uniqueproprietary and cost-effective products and production processes. Energy Conversion Devices Inc. has a market cap of $525.6 million; its shares were traded at around $11.49 with a P/E ratio of 17.15 and P/S ratio of 1.66.
Highlight of Business Operations:
Total revenues for the three months ended September 30, 2009 were $39.5 million, a decrease of $52.3 million or 57%, compared to the same period in 2008. The decrease in total revenue was due to a reduced product sales volume of $47.3 million and reduced pricing of $9.7 million, offset by increased revenues from product development agreements of $1.0 million and incremental revenues of $3.7 million associated with our newly-acquired SIT business.Cost of product sales for the three months ended September 30, 2009 was $27.3 million, a decrease of $32.3 million or 54%, compared to the same period in 2008. The decrease was primarily due to reduced sales volume, which resulted in $31.9 million of reduced costs. Additional reductions, primarily related to lower raw material costs and improved efficiencies in our manufacturing processes, amounted to $4.5 million. These reductions were offset by $4.1 million of costs attributable to sales in our newly-acquired SIT business.
Selling, general and administrative expenses for the three months ended September 30, 2009 were $7.9 million, an increase of $1.2 million or 18%, compared to the same period in 2008. The increase was primarily due to increased support services of $1.0 million and incremental costs of $2.8 million associated with our newly-acquired SIT business, partially offset by a decrease in the allowance for doubtful accounts receivable of $2.5 million.
Other expense was $4.5 million for the three months ended September 30, 2009 compared to $1.9 million in the same period in 2008. The $2.6 million increase was principally due to $3.4 million of increased net interest expense which is related to the reduced level of capitalized interest, a $2.3 million reduction in interest income due to lower level of investments in the current period, offset by a $1.3 million distribution from our previously owned Cobasys joint venture, $1.2 million of reduced levels of investment losses realized in the current period and incremental foreign currency transaction gains of $0.7 million associated with our newly-acquired SIT business.
Net cash (used in) provided by operating activities decreased $52.4 million to $(25.9) million for the three months ended September 30, 2009 from $26.5 million for the three months ended September 30, 2008. This decrease was driven by a reduction in our net income (loss) adjusted for non-cash items of $22.2 million and by $30.2 million additional cash used for changes in net working capital, specifically due to increased inventory levels offset by a reduction in accounts receivable and payables.
Net cash provided by (used in) investing activities increased $74.8 million to $29.6 million for the three months ended September 30, 2009 from $(45.2) million for the three months ended September 30, 2008. This increase was principally due to reduced capital expenditures of $34.8 million and increased proceeds from maturities and sales of our investments of $41.1 million.
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