STR Holdings swings to USD 3.6m continuing operations loss in Q3 2012

Nov 9, 2012 - US solar encapsulant maker STR Holdings Inc (NYSE:STRI) swung to a net loss from continuing operations of USD 3.6 million (EUR 2.8m) in the third quarter of 2012 as sales plunged.

In the year-ago period, the company recorded earnings from continuing operations of USD 3.8 million. Non-GAAP net loss from continuing operations was USD 1.1 million, or USD 0.03 per diluted share, against earnings of USD 8.8 million a year earlier, the company said on Wednesday.

Net sales plummeted 58.9% to USD 23.1 million as volume dropped 45% and average selling prices fell 20%. Quarter-on-quarter net sales were down by 8.1%, which president and chief executive Robert Yorgensen said reflected a significant softening in demand across the solar industry in the wake of unfavourable policy changes, mainly in Italy and Germany.

For the fourth quarter, the company projected net sales in the range of USD 14 million to USD 16 million and non-GAAP loss per diluted share of USD 0.07-0.09.

STR Holdings expects net sales of USD 93 million-95 million for the full year and non-GAAP loss per diluted share of USD 0.03-0.05. This compares with an annual guidance for USD 102 million-108 million in net sales and USD 0.01-0.07 diluted non-GAAP earnings per share in August.

(USD 1.0 = EUR 0.786)

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