SatCon (SATC) In Bed With Energy Conversion Devices' (ENER) Solar Arm...

We just got off the phone with the good people at SatCon as we noticed a press release from a few years back putting them in direct relation with Energy Conversion Devices' booming solar arm United Solar Ovonic (see PR below). They indeed confirmed that Uni-Solar still remains one of their customers. This is pretty significant news as growth in Uni-Solar's business is what triggered the recent breakout in ENER shares back in May. Apparently as stated in the aforementioned PR, SatCon provides the converters for Uni-Solar's photovoltaic systems. Moreover, we also asked SatCon if they foresaw profitability this year and they replied "we are expecting it," which is also tremendous news.


Here are quotes from ENER's last quarterly report:

"Total consolidated revenues for the quarter were $70 million, up 24 percent from second quarter revenues of $56.4 million, and 155 percent higher than third quarter fiscal 2007 revenues of $27.4 million. Solar product sales were $64.9 million, a 31 percent sequential increase and a 193 percent increase over the prior-year quarter.

Gross margin on product sales in the solar business was 30.7 percent in the third quarter, compared with 19.2 percent in the second quarter. The gross margin improvement was driven by better factory utilization and yield, and favorable customer/product mix.

Mark Morelli, ECD's president and chief executive officer, commented, "I'm pleased to report that we've reached profitability, and we've done so through sustainable changes to our business. This is a key milestone in our company's history, and a testament to the commitment and hard work of our colleagues."

United Solar Ovonic produced 21.6 MWs in the third quarter and 47.4 MWs for the first nine months of the fiscal year. The company confirmed its plans to expand and add 120MWs of additional nameplate capacity to its existing Greenville facilities. ECD will be able to internally fund this expansion through available funds and cash flow from operations. This previously announced expansion will increase the company's nameplate capacity to approximately 300MWs by the end of fiscal year 2010."




PR linking ENER with SATC:

United Solar Ovonic LLC — Uni-Solar — Selects SatCon Power Converters for Their Large Photovoltaic Power Generation Systems
Business Wire, Nov 24, 2003

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Nov. 24, 2003

SatCon Technology Corporation(R) (Nasdaq NM:SATC), a manufacturer of electronic power control systems, today announced that Uni-Solar, the leading manufacturer of thin film photovoltaic solar panels and provider of commercial PV roof system solutions, has selected the SatCon PowerGate(TM) Power Converter System for integration into its photovoltaic power generation systems for installations greater than 50-kilowatts. The converters are designed for use with solar power systems to generate electrical power in office buildings, small factories, hotels and similar facilities. SatCon's Power Converter Systems convert electricity from photovoltaic cells into standard usable electricity.

An International Energy Agency (IEA) report on "Trends in Photovoltaic Applications", a Survey report of selected IEA countries between 1992 and 2002, reported that annual module (photovoltaic systems) production rose by over 50% in 2002 to 482 Megawatts. At an estimated average installed cost of $7.00 per watt, the annual production rate represents some $3.5 billion dollars in sales globally. Roughly 60% of that market represents module costs, which include the cost of power converters. Power Converters typically account for about 15% of the hardware cost of a system. The report also stated that the photovoltaic market has grown at a rate of roughly 35% per year over the past few years. The report Clean Energy Trends 2003, published by Clean Edge Research, estimates that solar photovoltaics (PV) (including modules, system components, and installation) will grow from a $3.5 billion global industry in 2002 to more than $27.5 billion by 2012.

"Using the SatCon PowerGate(TM) Power Converter System gives us higher efficiency and lower standby mode losses enabling Uni-Solar's photovoltaic systems to deliver more net energy," said Allan Gregg, United Solar Ovonic's (Uni-Solar) director of system engineering and marketing. "Furthermore, the PowerGate(TM) converter has integrated all components required for grid connection, allowing us to reduce our electrical installation cost by as much as 75%. The introduction of SatCon's large converters is timely since we are seeing the majority of market growth in large power installations."

"We believe there is a growing market for technology that makes solar energy practical for industrial applications," said David Eisenhaure, SatCon's president and chief executive officer. "With our next-generation technology, we are well positioned to capitalize on the opportunities presented by the solar photovoltaics market. We believe that the market potential for our 100kW photovoltaic power conditioning system will be significant, and we are pleased that Uni-solar has adopted our power converters for use in its photovoltaic power generation systems."