Evergreen Solar, Inc. (NasdaqCM: ESLR), a manufacturer of String Ribbon ® solar power products with its proprietary, low-cost silicon wafer technology, today announced selected preliminary information for the quarter ended April 2, 2011 and April month to date.
Shipments for the first quarter of 2011 were approximately 18 megawatts at an average selling price of $1.86 per watt, compared to fourth quarter 2010 shipments of approximately 47 megawatts at an average selling price of $1.90. Through April 26, the Company has shipped an additional 6 MW at an average selling price of $1.86 per watt.
Cash and cash equivalents, including restricted cash, as of April 2, 2011 were approximately $38.5 million and were approximately $33 million at April 26, after making the Company’s scheduled interest payment of $10.75 million on April 15 to holders of the Company’s 13% Senior Secured Convertible Notes due 2015.
Michael El-Hillow, President and Chief Executive Officer commented, “Uncertainties regarding feed-in-tariffs and other subsidy programs have substantially slowed the demand for solar panels in 2011. While the first quarter has historically been slow for the industry, the sluggish demand has unexpectedly continued early into the second quarter. This longer than expected slow down combined with the continued worldwide capacity expansion has contributed to a significant increase in solar panel inventory throughout the distribution channel. While we believe the market for solar panels will continue to show good long term growth, the near term remains uncertain and we will adjust our production in Wuhan to make certain we can match the market’s demands and at the same time improve our cash-to-cash cycles.”Mr. El-Hillow continued, “As a result of our low year to date sales volume and potentially slower sales for the remainder of this year as the industry balances inventory levels, along with significantly increased pricing pressure, the cash that we had previously expected to realize through the reduction in accounts receivable and inventory from our recently closed Devens facility will be less than expected and will take longer than expected to realize. Therefore, our near term liquidity has been negatively impacted and may require us to secure additional sources of cash sooner than expected. Accordingly, we will continue to aggressively pursue opportunities to address our capital structure in the near term, including restructuring our existing debt, in order to significantly deleverage and better position ourselves to secure additional financing and execute our strategy of developing and supplying the lowest cost industry standard sized wafers to the world's leading solar module manufacturers.”