Fort Worth, TX – March 17, 2009 – Entech Solar (OTC BB: ENSL.OB), a leading developer of concentrating solar energy systems, today announced its financial results for the three and twelve months ended December 31, 2008.
Recent Operational Highlights:
• The Company, during and subsequent to the fourth quarter, substantially completed all of its photovoltaic flat-plate solar installation projects, changed its name and ticker symbol, made important changes to its Board of Directors, and redeployed significant resources towards its strategy of becoming a vertically integrated, concentrating solar energy company.
• The Entech manufacturing center in Fort Worth, Texas, made positive headway in addressing several process manufacturing issues as it prepares for product certification and the commercialization of its SolarVolt and ThermaVolt technologies.
• The Company had cash on hand of $12 million on December 31, 2008. In addition, Entech has announced a 40% staff reduction, is cutting non-payroll expenses by 20%, has eliminated non-essential capital spending, and is expected to collect approximately $4.5 million of flat-plate contract accounts receivable in the near future.
“Since our last earnings conference call in November, we have made significant progress in addressing many manufacturing process issues at our new facility and brought on board an impressive group of individuals with advanced engineering degrees and years of appropriate experience to reposition the company for future growth,” said Frank Smith, Chief Executive Officer. “While making progress in correcting many of the operational items discussed last quarter, we have encountered some additional challenges as we bring our production on line. Our promotion of Sean Rooney to Chief Operating Officer has brought more urgency and focus to our efforts to solve the remaining areas to be addressed.
“As our operations team makes headway with regard to product launch, we continue to introduce our Entech modules to potential clients and beta-testing partners – many of whom appear interested in installing our advanced SolarVolt and ThermaVolt systems as soon as available. We expect that, once our products are ready for market, several beta-test partners will take delivery of Entech modules even as the product certification process continues.
“Our Board of Directors is committed to the success of our technology and, even with the resources on hand, we continue to analyze a variety of capital raising alternatives to support our growth initiatives going forward. At the same time, we have diligently reduced overhead costs while prudently investing in our manufacturing operations and new product development. With the increasing federal, state and foreign incentives for renewable energy solutions now being put in place, we believe that our SolarVolt, ThermaVolt and other products under development – based on our proprietary concentrating technology – will offer compelling values to our target customers, profitability for our Company, and desirable returns to our Shareholders in the years to come.”
Financial Results
Revenue for the fourth quarter was $7.8 million, compared with $10.9 million reported in the fourth quarter of 2007. The Company recorded a gross loss for the quarter of $0.9 million versus a gross profit of $0.6 million in the prior-year quarter. The Company’s net loss attributable to common shareholders for the fourth quarter of 2008 was $6.2 million, or $(0.03) per share, compared with a loss of $5.7 million, or $(0.03) per share, in the fourth quarter of 2007.
For the full year 2008, the Company posted revenue of $30.8 million, versus $18.5 million in 2007. The Denver Airport and Valley Center projects, along with Ocean City, were the primary drivers of this top-line growth.
The Company reported a gross loss of $8.5 million for all of 2008, versus a gross profit of $1.7 million last year. As was previously reported, Entech Solar experienced significant losses on several projects completed during 2008. The Company’s net loss attributable to common shareholders was $44.9 million, or $(0.21) per share, for the year compared to a net loss of $14.4 million, or $(0.09) per share, in 2007. The results for 2008 include a non-cash charge of $15.5 million related to the issuance of warrants and the beneficial conversion feature of the Series F Preferred Stock.
Conference Call
Entech Solar will host a conference call today, March 17, 2009 at 10:00 am Eastern Time for the fourth quarter and year ended December 31, 2008. During the call, Frank Smith, Chief Executive Officer, and Kent Van Houten, Chief Financial Officer, will review the company’s operations and financial results. David Gelbaum, the Company’s Chairman, will also participate in the call. The telephone number for the conference call is 617-614-4909, conference ID #83110181. 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 617-801-6888, conference ID #70507013. The encore recording will be available two hours after the conference call has concluded.
About Entech Solar
Entech Solar is a leading developer of concentrating solar energy systems. Entech designs modules that provide both electricity and thermal energy by utilizing its proprietary concentrating photovoltaic technologies in its SolarVolt™ and ThermaVolt™ systems, both of which produce cost-competitive distributed energy for a variety of commercial and industrial applications. 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 the Private Securities Litigation Reform Act of 1995. 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 Press Contact:
Jessica Bloomgarden
jbloomgarden@entechsolar.com
Entech Solar Investor Relations Contact:
Chris Witty
(646) 438-9385
cwitty@darrowir.com
