Second Quarter Operational Highlights
Completed preliminary design and construction of a module prototype of its next-generation concentrating solar product, ThermaVolt II which will be deployed with both ground and roof-mount trackers, and is being designed for low cost, manufacturability, ease of installation and high reliability.
Filed multiple patent applications associated with the ThermaVolt II module to ensure appropriate intellectual property protection.
Recently completed the preliminary design of its patented tubular skylight and announced its intention to commercialize this product.
Business transformation from a flat-plate photovoltaic engineering, procurement and construction company to an advanced technology-based solar solutions developer resulted in significant revenue reduction in the second quarter of 2009.
"Entech Solar is pleased to announce meaningful progress in both the development of its concentrating solar module, ThermaVolt II, and its tubular skylight products over the past few months," said Dr. Frank Smith, Chief Executive Officer. "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, competitive price point and standard installation.
"In addition to the concentrating solar modules, we are developing and commercializing a line of tubular skylight products, which we view as an important strategic investment that may enhance the Company's near-term revenue and market presence. We remain focused and dedicated to completing the development and commercialization of our products as soon as possible, and continue to assess opportunities to accelerate this process."
Financial Results
As the Company transitions from the flat-plate solar installation business, revenues for the 2009 second quarter amounted to $150 thousand, compared with $7.6 million reported in the second quarter last year. The Company recorded a gross profit for the quarter ended June 30, 2009 of $11 thousand, versus a gross loss of $2.9 million in the prior-year period. The Company's net loss attributable to common shareholders for the second quarter of 2009 was $4.3 million, or $(0.02) per share, versus a comparable loss of $24.0 million, or $(0.12) per share, after the $15.5 million preferred stock dividend recorded in the second quarter of 2008.
Conference Call
Entech Solar will host a conference call at 10:00 a.m. Eastern on August 10, 2009 for the quarter ended June 30, 2009. During the call, Dr. Frank W. Smith, Chief Executive Officer, and Sandy J. Martin, Chief Financial Officer, will review the Company's operations, business and financial matters. During the call, the Company may discuss or respond to questions which may constitute material information that has not been previously disclosed. The telephone number for the conference call is 866-831-6247 domestically and 617-213-8856 internationally, with conference ID #52435504. 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 #63010910. Encore recordings will be available two hours after the conference call has concluded.
About Entech Solar
Entech Solar, Inc. plans to become a leading developer of renewable energy technologies for the commercial and industrial markets. Entech Solar designs concentrating solar modules that provide both electricity and thermal energy as part of its ThermaVolt 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 SIX MONTHS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) (In thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 Revenues: Contract $ 149 $ 7,596 $ 1,247 $ 15,825 Equipment 1 - 144 - Related party - - 597 775 Related party - Former Chairman - - 125 - Total 150 7,596 2,113 16,600 Cost of Revenues: Contract (73 ) 10,522 752 21,153 Equipment - - 97 - Related party - - 601 673 Related party - Former Chairman - - 142 - Manufacturing operations impairment 212 - 6,968 - Total 139 10,522 8,560 21,826 Gross Profit (Loss): Contract 222 (2,926 ) 495 (5,328 ) Equipment 1 - 47 - Related party - - (4 ) 102 Related party - Former Chairman - - (17 ) - Manufacturing operations impairment (212 ) - (6,968 ) - Total 11 (2,926 ) (6,447 ) (5,226 ) Operating Expenses: Selling, general and administrative expenses 2,011 4,803 10,468 9,490 Depreciation and amortization 719 735 1,459 1,252 Research and development expenses 1,680 57 2,175 98 Total Operating Expenses 4,410 5,595 14,102 10,840 Loss from Operations (4,399 ) (8,521 ) (20,549 ) (16,066 ) Other income (expense) Beneficial conversion and warrant amortization - (18 ) - (50 ) Interest income 53 62 77 363 Other income (expense) (32 ) - 5 - Total other income (expense), net 21 44 82 313 Net Loss (4,378 ) (8,477 ) (20,467 ) (15,753 ) Net Loss attributable to noncontrolling interest 69 - 196 - Net Loss attributable to Entech Solar, Inc. (4,309 ) (8,477 ) (20,271 ) (15,753 ) Accretion of preferred stock dividends - Series C - (5 ) - (9 ) Preferred stock dividends - Series F - (15,512 ) - (15,512 ) Net Loss attributable to Entech Solar, Inc. Common Shareholders $ (4,309 ) $ (23,994 ) $ (20,271 ) $ (31,274 ) Net Loss attributable to Entech Solar, Inc. per Common Share (Basic and Diluted) $ (0.02 ) $ (0.12 ) $ (0.09 ) $ (0.16 ) Weighted Average Common Shares Outstanding used in Per Share Calculation (Basic and Diluted) 238,154 193,877 237,645 192,101 -------------------------------------------------------------------------------
ENTECH SOLAR, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2009 AND DECEMBER 31, 2008 (In thousands, except share and per share data) June 30, 2009 December 31, 2008 (UNAUDITED) * Assets Current assets: Cash and cash equivalents $ 5,809 $ 12,169 Accounts receivable - trade (net of allowance of $321 and $155 at June 30, 2009 and December 31, 2008, respectively) 798 1,971 Rebates receivable - 115 Inventory (net of reserve of $2,969 and $1,112 at June 30, 2009 and December 31, 2008, respectively) 744 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 446 964 Total Current assets 7,882 22,835 Advances on machinery and equipment - 2,285 Property and Equipment, net 3,163 5,969 Intangible and other assets Other intangible assets, net 21,808 23,058 Goodwill 23,837 23,837 Other deposits 145 153 Total Assets $ 56,835 $ 78,137 Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ 2,784 $ 4,076 Customer deposits - related party - 1,023 Renewable Energy Credit guarantee liability, current portion 60 60 Series D Preferred Stock Warrants 1,394 1,394 Billings in excess of costs and estimated earnings/losses 144 760 Total Current liabilities 4,382 7,313 Renewable Energy Credit guarantee liability, net of current portion 180 180 Total Liabilities 4,562 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 450,000,000; 238,417,737 and 236,420,779 issued at June 30, 2009 and December 31, 2008, respectively; 238,389,869 and 236,392,911 shares outstanding at June 30, 2009 and December 31, 2008, respectively 238 236 Additional paid-in capital 170,073 167,979 Accumulated deficit (129,159 ) (108,888 ) Treasury stock, 27,868 shares, at cost, as of June 30, 2009 and December 31, 2008, respectively (39 ) (39 ) Noncontrolling Interest (26 ) - Total Stockholders' Equity 41,093 59,294 Total Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity $ 56,835 $ 78,137 * Derived from audited financial information -------------------------------------------------------------------------------
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