Entech Solar, Inc. (OTC BB: ENSL.OB) (the ?Company,? ?Entech Solar? or ?Entech?), today announced its financial results for the three months ended March 31, 2010.

Operational Highlights:

Solar Concentrator Products: The Company's primary focus continues to be on developing and commercializing our state-of-the-art concentrating photovoltaic (?CPV?) products that can provide electricity in the short term and potentially both electricity and heat in the long term. We believe that providing electricity only and electricity and hot water will give customers energy solutions that are more efficient and cost-effective.

During the first quarter, changing market conditions led us to select our electricity only product SolarVolt? CPV module as the company's top priority in our CPV power products business. Compared to our previous generations of terrestrial CPV technology, SolarVolt? CPV offers substantial benefits in weight, volume, manufacturing scalability, durability, and cost-effectiveness. We plan to begin independent certification testing of SolarVolt? during the summer of 2010, and we hope to have a certified product ready for commercialization in early 2011 to address the rapidly growing photovoltaic market. We may follow SolarVolt? with a new and improved version of ThermaVolt?, our electricity and hot water product.

Tubular Skylight Lighting Solution: During the first quarter we launched our patented, state-of-the-art tubular skylight that we believe provides superior light output and optical efficiency for commercial and green building initiatives. We did not generate any revenue in the first quarter and we do not expect to have significant revenues in 2010.

Financial Results

For the three months ended March 31, 2010, the Company's revenues were $15 thousand, compared to $2.0 million for the comparable period in 2009. The Company's gross loss for the three months ended March 31, 2010 was $15 thousand, compared to a gross loss of $6.5 million for the three months ended March 31, 2009. Entech Solar's net loss attributable to common shareholders for three months ended March 31, 2010 was $6.2 million, or $(0.02) per share, compared to a net loss of $16.0 million, or $(0.07) per share, for the comparable period in 2009. As of March 31, 2010, the Company's cash and cash equivalents were $3.9 million.

Since December 31, 2009, we have entered into additional preferred and common stock purchase agreements with The Quercus Trust for an aggregate of $6.9 million. The Quercus Trust is our principal shareholder. David Gelbaum, trustee of The Quercus Trust, is our Chief Executive Officer and Chairman. During the first quarter the Company entered into a preferred stock purchase agreement with Socius Capital Group, LLC providing for a commitment of $5 million to be funded in one or more tranches over the next two years, subject to various conditions precedent, including the effectiveness of a registration statement that was filed with the Securities and Exchange Commission relating to this transaction.

Subsequent to the end of the first quarter of 2010, The Quercus Trust purchased an aggregate of $2.2 million of newly designated Series H preferred stock in two separate closings. As of May 10, 2010, The Quercus Trust beneficially owned approximately 54.1% of the Company's common stock (after giving effect to the conversion of the Series D Convertible Preferred Stock).

Conference Call

Entech Solar will host a conference call at 11:00 a.m. Eastern on May 17, 2010 to answer questions regarding the Company's first quarter 2010 from those participating on the conference call. The telephone number for the conference call is 866-356-4279 domestically and 617-597-5394 internationally, with conference ID #21648396. A live webcast of the call will also be available on the company's website, www.entechsolar.com.

The webcast will be archived on the site, and investors will be able to access a recording of the conference call for thirty days by calling 888-286-8010 domestically or 617-801-6888 internationally, with conference ID #74142379. The recording will be available two hours after the conference call has concluded.

About Entech Solar

Entech Solar, Inc. is a leading developer of solar energy technologies and sustainable day lighting solutions for the commercial, industrial and utility markets. Entech Solar designs concentrating solar modules that directly produce electricity from sunlight as part of the SolarVolt? product line. The Company also manufactures and markets the Entech? Tubular Skylight, a state-of-the-art tubular skylight that provides superior light output and optical efficiency for the commercial and industrial green building initiatives. For more information, please visit www.entechsolar.com.

Forward Looking Statements

Except for historical information contained herein, this document contains forward-looking statements within the meaning of Section 21-E of the Securities Exchange Act of 1934. Such statements, identified by words like ?plan,? ?believe,? ?intend,? ?expect,? ?anticipate? and similar words, include statements about the Company's product development, certification and commercialization plans, future revenues, strategic goals, and value to customers. These forward looking statements involve known risks and uncertainties that may cause actual results to differ materially from such forward looking statements. Factors that may cause such differences include the fact that the Company operates in an industry where stock prices are volatile; results of operations may be influenced by regulatory changes and other factors beyond the Company's control; the Company has and may continue to experience cash flow difficulties; the Company is rapidly working to develop its technology; and other risks set forth in the Company's annual reports on Form 10-K and quarterly reports on Form 10-Q, each as filed with the Securities and Exchange Commission. In assessing forward looking statements readers are urged to carefully read all cautionary statements contained in the Company's filings with the Securities and Exchange Commission. If any such risks actually occur, they could materially adversely affect the Company's business, financial condition or results of operations. In that case, the trading prices of the Company's common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward looking statements, which speak only as of the date made. Forward looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future and such information may not be appropriate for other purposes. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward looking statements to reflect any change in expectations or any change in events, conditions or circumstances on which any such statement is based, expect as required by law.

 
ENTECH SOLAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
   
March 31, December 31,
2010 2009

 

 

 
Assets
Current assets:
Cash and cash equivalents $ 3,859 $ 1,952
Accounts receivable?trade, net of allowance 19 22
Inventory, net of reserve 195 267
Other current assets   374     160  
 
Total current assets 4,447 2,401
Property and equipment, net 2,492 2,983
 
Intangible and other assets:
Other intangible assets, net 19,099 19,695
Goodwill 19,196 19,196
Other deposits   328     384  
 
Total Assets $ 45,562   $ 44,659  
 
Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 2,933 $ 2,301
Series D Preferred stock warrants 1,394 1,394
Other   94     94  
 
Total current liabilities 4,421 3,789
Other   118     129  
 
Total liabilities   4,539     3,918  
 
Convertible redeemable preferred stock
Series D convertible redeemable preferred stock   11,180     11,180  
 
Stockholders' Equity
Preferred stock: 6 6
Common stock 321 277
Additional paid-in capital 180,381 173,852
Accumulated deficit (150,634 ) (144,395 )
Treasury stock, at cost (39 ) (39 )
Noncontrolling interest   (192 )   (140 )
 
Total Stockholders' Equity   29,843     29,561  
 
Total Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity $ 45,562   $ 44,659  

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© Business Wire - 2010

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ENTECH SOLAR, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

 

  Three Months Ended March 31,
2010   2009
Revenues:
Contract $ ? $ 1,097
Equipment and services 15 143
Related party ? 597
Related party?former chairman   ?     126  
 
Total   15     1,963  
 
Cost of Revenues:
Contract ? 827
Equipment and services 30 97
Related party ? 597
Related party?former chairman ? 142
Manufacturing operations impairment   ?     6,758  
 
Total   30     8,421  
 
Gross Profit (Loss):
Contract ? 270
Equipment and services (15 ) 46
Related party ? ?
Related party?former chairman ? (16 )
Manufacturing operations impairment   ?     (6,758 )
 
Total   (15 )   (6,458 )
 
Operating Expenses:
Selling, general and administrative expenses 4,258 8,705
Research and development expenses 1,320 211
Depreciation and amortization   751     740  
 
Total Operating Expenses   6,329     9,656  
 
Loss from Operations (6,344 ) (16,114 )
Other income (expense)   53     24  
 
Net Loss (6,291 ) (16,090 )
Net loss attributable to noncontrolling interest   (52 )   (127 )
 
Net loss attributable to Entech Solar, Inc.   (6,239 )   (15,963 )