Operational Highlights:
The company has suspended manufacturing operations of its first-generation CPV products to focus all of its resources on its next generation of solar concentrating modules for expanded rooftop and other customer-driven applications.
Entech Solar is leveraging its proprietary SolarVolt and ThermaVolt technology and know-how to form the foundation for these next generation products, which are being developed by a team of highly qualified solar, electrical, mechanical, and process engineers and scientists, and will employ many proven industry-standard manufacturing processes and practices.
Based on the decision to suspend manufacturing, the company took a non-cash impairment charge of $6.8 million during its first quarter related to certain fair value adjustments to manufacturing equipment, inventory and leasehold improvements.
The company’s balance sheet remains strong, with cash on hand of $8.9 million at March 31, 2009. Management plans to complete the $3 million Rights Offering and intends to seek additional funding for growth through the equity capital markets.
Financial Results
During the 2009 first quarter, the company recorded a non-cash impairment charge of $6.8 million to reflect fair value adjustments of its manufacturing operations, after the decision was made to indefinitely suspend current production activities. In addition, the company recorded a provision for doubtful accounts of around $1 million based on one customer’s inability to make required contractual payments. The 2009 first quarter also reflects other restructuring costs incurred in connection with the company’s recently announced changes.
“Entech Solar announced a significant change to its product development plan this past quarter that is designed to focus the Company on the most commercially viable development path for maximum market penetration,” said Frank Smith, chief executive officer. “We are committed to commercializing our next generation CPV technology to improve upon our existing ThermaVolt and SolarVolt product lines as a key element in providing both hardware and turnkey, vertically integrated energy solutions to our customers. We believe our new products will provide a more attractive value proposition, serve a wider market, and provide better returns for the Company and our shareholders going forward.”
