Broadwind Drops, Sees First Half Bottom

The concentration of Broadwind's customer list continues to be a business risk. In 2009, six customers accounted for approximately 75% of Broadwind's total revenue, up from four customers in 2008. That said, wind continues to be a small market: Broadwind's commercial relationships with customers account for more than 97% of all wind turbine assembly in the US market.

On the positive side, amid the poor sales environment and big one-time charges, Broadwind lowered sales expenses in 2009 by $6.7 million.

Revenue from wind towers were $17.2 million in the fourth quarter of 2009, compared with $33.8 million in the fourth quarter of 2008. The segment reported a $1.9 million operating loss in the fourth quarter of 2009, or $1.2 million of reduced gross profit versus the previous year.

Revenue from Broadwind's gearing segment was $9.7 million in the fourth quarter of 2009, compared with $28 million in the fourth quarter of 2008, down significantly due to weak demand from both wind energy and industrial customers. The segment reported an $85.3 million operating loss in the fourth quarter of 2009, including an $80.3 million non-cash intangible impairment charge.

Revenue from Broadwind's Logistics segment was $0.9 million in the fourth quarter of 2009, compared with $3.6 million in the fourth quarter of 2008, a decrease in revenue caused by the weak demand in the wind energy industry and competitive pricing pressure. The segment reported a $2 million operating loss in the fourth quarter of 2009, versus a $0.7 million operating loss in the fourth quarter of 2008.

-- Reported by Eric Rosenbaum in New York.

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