You would think Energy Conversion Devices
That's exactly what ECD announced late last week, sending the shares on another unpleasant journey southward. Following on the "two-week production hiatus" announced in March, the company now expects a "three to four week furlough." ECD argues that demand for the firm's lightweight, flexible thin-film solar laminates is still there. The credit markets just aren't cooperating, with funds flowing like a vanilla shake from In-N-Out Burger. (If you didn't know, those suckers are stiff.)
For the quarter, ECD served up $60 million in solar product revenue, which was about as soft as promised. Though the company is realizing some pretty significant cost savings at this point -- Schlumberger
Like Suntech Power
In order to address the pileup of inventories and get some product moving, ECD has followed the likes of Evergreen Solar
Circling back to those lower costs -- including a 15% drop in materials costs over the past nine months, and a targeted 20% drop in personnel costs next quarter -- ECD similarly echoed Suntech in citing the savings as a potential accelerator toward achieving grid parity. As bad as the company's visibility is today, there remains the promise of a sunnier tomorrow.