Comments:

Commenting on the company’s performance, Paul J. van der Wansem, BTU chairman and chief executive officer, said, This was obviously a disappointing quarter with sales down 33% from the previous quarter. Our production ran below its capacity, impacting our margins. With the severe slowdown in our electronics business, which was down by around 70 percent versus the previous quarter, coupled with an expectation of a slow recovery, the company recorded an inventory reserve of around one million dollars, reducing our margins by an additional 11%.”

Our growth strategy of investing in our alternative energy business is continuing to show positive results with system sales in the first quarter growing compared to the previous quarter. This now represents five quarters in a row of growth in our alternative energy business. Several new product introductions for both silicon- and thin film-based solar are on schedule and start ups will be taking place during the second quarter of 2009.

At the end of the first quarter, we had available cash of $26.6 million, down slightly from $27.5 million at the end of fiscal year 2008. Our balance sheet continues to support our strategic objectives.”

Outlook

The lack of clarity for our worldwide customer base–which is being impacted by weak consumer spending, credit availability and other macro-economic conditions–makes it difficult to determine whether we have reached the bottom or to predict when we will see a meaningful upturn in our electronics equipment business.

In solar, for silicon cell production we see investments in technologies that improve efficiencies and throughput, with a more cautious appetite for pure capacity expansion. In thin film solar, we’re seeing increased activity as customers move from development to production.

Our management team is investing in the alternative energy sector and bringing the right, innovative products to the solar industry, said van der Wansem.

Based upon the introductions of these new products, we expect to further strengthen our competitiveness in the solar markets and to see a potential improvement in our business results in the second half of the year. We are achieving our goals of positioning the company to participate in the alternative energy industry with its expected high growth and bright future, concluded van der Wansem.