Energy Conversion Devices (ENER) reported another sizable loss of .64/share (excluding large impairment charge of $358 million), but it did beat the .75/loss analysts had been expecting. Revenues also came in higher than expected at $72 million vs the estimate of $61 million. It’s a glimmer of hope for a company that has really struggled, but they’re still a long ways from returning to profitability and are expected to continue racking up losses at least over the next year.
CEO Mark Morelli commented on the quarter: “Despite today’s impairment charge, we believe that our business is turning the corner and we are enhancing our competitive position. We believe we can improve our technology and reach a conversion efficiency of 20 percent. We have already achieved a laboratory-proven conversion efficiency of over 15 percent, and we are well along our detailed roadmap to deliver 12 percent efficiency while reducing our cost-per-watt to less than 95 cents in the near term. Our focus on cost reductions, continued progress implementing our project business model and improving market conditions will support our return to profitability.”
Shares of ENER are up today, but technically look very sick. The stock plunged to a new all time low last week with increasing volume below the $7 level, so that will now act as a significant level of resistance. I would stay far away from this one until it can get back above the 50 day moving average around $7.50.