Nov 10, 2011 - German Phoenix Solar AG (ETR:PS4) said today it turned to a third-quarter after-tax loss of EUR 19 million (USD 25.7m) from a profit of EUR 2.3 million a year earlier as price declines in the photovoltaic (PV) sector outweighed a revenue increase.
Due to inventory impairment of EUR 9.6 million which resulted from the downturn in prices over the quarter, the PV technology company posted a loss before interest and tax (LBIT) of EUR 13.2 million after profit of EUR 4.3 million in the prior-year period.
Phoenix Solar's third-quarter revenue increased by 18.7% on the year to EUR 113.1 million. This rise was mainly due to strong international business which grew by 53.4% and contributed 71.6% to the company's total revenue.
Following a reduction in Phoenix Solar's forecast in October, the company now projects revenue of between EUR 350 million and EUR 400 million and LBIT of EUR 42 million to EUR 49 million. The company has already launched measures to cut costs and optimise the business model in a bid to return to profitability in 2012.