STR Holdings, Inc.
) fourth-quarter 2012 adjusted loss per share of 8.50 cents was
marginally wider than the Zacks Consensus Estimate and the
year-ago loss of 8 cents.
Including amortization of intangibles, restructuring costs, and
various other impairment charges, GAAP loss per share was $2.97,
wider than the loss per share of $1.63 in the fourth quarter of
In full year 2012, adjusted loss per share was 13 cents versus
earnings per share of 69 cents. The loss was wider than the Zacks
Consensus Estimate of a loss of 11 cents per share. Including
one-time charges, GAAP loss per share as reported by the company
was $5.02 compared with a loss of 3 cents per share in full year
The results reflect continued pricing pressure, increased
competition and the loss of
First Solar, Inc.
) as a customer.
STR Holdings generated revenues of $16 million, higher than the
Zacks Consensus Estimate of $15 million. However, revenues were
lower than the year-ago figure of $36.5 million. In 2012, total
revenue of $95.3 million was marginally higher than the Zacks
Consensus Estimate of $95 million. However, the top line was down
59% year over year.
Gross loss for the fourth quarter of 2012 was $6.0 million,
compared with a profit of $4.3 million in the fourth quarter of
2011. Selling, general and administrative expenses were $4.3
million, down 43.7% year over year. The decline in expenses
notwithstanding, operating loss widened in the reported quarter
to $184.3 million versus a loss of $68.3 million in the year-ago
quarter in the wake of plummeting sales.
STR Holdings at the end of the reported period had cash and cash
equivalents of $82 million, compared with $58.8 million at the
end of 2011. Net cash provided by (used in) operating activities
during the quarter was $11.0 million versus ($73.5) million in
the year-ago quarter.
In first quarter of 2013, STR Holdings expects total revenue in
the range of $9 million to $10 million and loss per share in the
range of 10 cents to 8 cents per share.
In full year 2013, the company expects total revenue in the range
of $45 million to $55 million and loss per share in the range of
25 cents to 15 cents per share.
At the Peer
Yesterday, another solar company
) reported fourth quarter of 2012 adjusted loss per American
Depositary Share ("ADS") of 29 cents per share, beating the Zacks
Consensus Estimate of a loss of 37 cents loss per ADS but much
wider than the year-ago loss of 21 cents per ADS.
STR Holdings failed to meet the Zacks Consensus Estimates owing
to a challenging solar industry.
In order to cope with the difficult environment, the company is
developing and commercializing innovative products. The company
continues to execute its strategic objective of streamlining the
cost structure. In the process of a comprehensive review of its
cost structure, the company decided to make significant headcount
reductions throughout the organization. Also, the company is
evaluating its long-lived assets for impairment, and thereby
expects to incur significant restructuring charges in 2013.
Though the loss of First Solar hit the company hard, STR Holdings
is trying to compensate this loss in several ways. STR Holdings
for that matter plans to stop its manufacturing operations at its
East Windsor, Conn. facility.
Going forward, expenditure on research and development, severance
charges incurred on closure of the facility and lower average
selling prices remain a matter of concern for the company.
The company presently retains a Zacks Rank #4 (Sell).
In the near term, we would advise investors to accumulate its
Zacks Rank #2 (Buy) peer
Canadian Solar Inc.
STR Holdings, Inc., together with its subsidiaries, designs,
develops, manufactures, and sells encapsulants for the solar
industry worldwide. Its encapsulants protect the embedded
semiconductor circuits of solar panels. The company sells its
products to crystalline silicon and thin-film solar module
CANADIAN SOLAR (CSIQ): Free Stock Analysis
FIRST SOLAR INC (FSLR): Free Stock Analysis
RENESOLA LT-ADR (SOL): Free Stock Analysis
STR HOLDINGS (STRI): Free Stock Analysis
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