STR Holdings Announces Preliminary Second Quarter 2012 Results

STR Holdings, Inc. (NYSE:STRI) today announced that it expects diluted non-GAAP earnings per share (EPS) of $0.00 and to record revenue of approximately $25 million for the second quarter of 2012. Projected diluted non-GAAP EPS is within the previously-announced guidance range of $0.00 to $0.02. Projected revenue is below the Company’s guidance range of $31 to $33 million. Operating cash flow generation from continuing operations remained strong during the second quarter and is estimated to approximate $8 million. The Company’s cash balance as of June 30, 2012 is projected to approximate $72 million.

“Our aggressive cost reduction efforts helped us achieve the low-end of our non-GAAP EPS guidance range, despite softer-than-anticipated demand for our encapsulants,” said Robert S. Yorgensen, President and Chief Executive Officer. “These actions helped us to continue generating cash and we believe that our strong balance sheet and recent product introductions position us well for the future.”

The updated outlook reflects the Company's current estimates as of the date of this press release and is subject to change based on further review by management and finalization of quarterly review procedures by its independent accountants.

The Company expects to announce results for the second quarter of 2012 on August 8, 2012.

About STR Holdings, Inc.

STR Holdings, Inc. is a leading global provider of high quality, superior performance solar encapsulants to the photovoltaic module industry. Further information about STR Holdings, Inc. can be obtained via the Company’s website at

Forward-Looking Statements

This press release and any oral statement made in respect of the information in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to inherent risks and uncertainties. These forward-looking statements present the Company’s current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business and are based on assumptions that the Company has made in light of its industry experience and perceptions of historical trends, current conditions, expected future developments and other factors management believes are appropriate under the circumstances. However, these forward-looking statements are not guarantees of future performance or financial or operating results. In addition to the risks and uncertainties discussed in this press release, the Company faces risks and uncertainties that include, but are not limited to, the following: (i) excess capacity in the solar supply chain; (ii) its ability to increase its market share; (iii) demand for solar energy in general and solar modules in particular; (iv) the timing and effects of the implementation of government incentives and policies for renewable energy, primarily in China and the United States; (v) the effects of the announced reductions to solar incentives in Germany and Italy; (vi) the extent to which it may be required to write-off accounts receivable, inventory or intangible assets; (vii) product pricing pressures and other competitive factors; (viii) customer concentration in its business and its relationships with key customers; (ix) its ability to protect its intellectual property; (x) volatility in commodity costs, such as resin or paper used in its encapsulants, and its ability to successfully manage any increases in these commodity costs; (xi) its dependence on a limited number of third-party suppliers for raw materials for its encapsulants and materials used in its processes; (xii) operating new manufacturing facilities and increasing production capacity at existing facilities; (xiii) its reliance on vendors and potential supply chain disruptions, including those resulting from bankruptcy filings by customers or vendors; (xiv) potential product performance matters and product liability; (xv) the extent and duration of the current downturn in the global economy; (xvi) the impact negative credit markets may have on the Company or its customers or suppliers; (xvii) the impact of changes in foreign currency exchange rates on financial results, and the geographic distribution of revenues and earnings; (xviii) maintaining sufficient liquidity in order to fund future profitable growth and long-term vitality; (xix) outcomes of litigation and regulatory actions; and (xx) the other risks and uncertainties described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in subsequent periodic reports on Forms 10-K, 10-Q and 8-K. You are urged to carefully review and consider the disclosure found in the Company’s filings which are available on or Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove to be incorrect, actual results may vary materially from those projected in these forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statement contained in this release, whether as a result of new information, future developments or otherwise, except as may be required by law.

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