STR Holdings, Inc. (NYSE: STRI) today announced its financial results for the second quarter and six months ended June 30, 2012.
Second Quarter 2012 Financial Summary:
- Net sales of $25.1 million
- Diluted GAAP loss per share from continuing operations of $(0.06); Diluted non-GAAP EPS from continuing operations of $0.00
- Operating cash flow from continuing operations of $8.1 million; Free cash flow from continuing operations of $4.3 million
- Finished the quarter with $72.2 million in cash and no debt
Net sales for the quarter ended June 30, 2012 were $25.1 million. This represents a decline of 19.2% sequentially and 65.0% from Q2 2011. On a sequential basis, the decline was driven primarily by a 16.6% volume decline and a 2.0% decline in average selling price (ASP). On a year-over-year basis, volume declined 53.0% and ASP declined 20.7%.“The sequential volume decline was mainly the result of softer-than-anticipated demand from our customer base,” said Robert S. Yorgensen, STR’s President and Chief Executive Officer. “While we are not yet aligned with certain Chinese module manufacturers who are driving global volume growth, our continuing cost-reduction efforts enabled us to achieve the low end of our second quarter non-GAAP EPS guidance range.” Gross profit for the second quarter of 2012 was $1.6 million, or 6.3% of sales, compared to $2.0 million, or 6.4% of sales, from the first quarter of 2012. The Company was able to maintain gross margin despite lower sales as a result of its successful cost-reduction efforts, which decreased our cost per square meter sold by 3% sequentially. Selling, general and administrative expenses for the second quarter of 2012 were $6.7 million compared to $7.7 million in the first quarter of 2012. The reduction was driven by lower labor and incentive compensation expense and lower professional fees. Together, these more than offset increased R&D and selling expenses.