STR Holdings, Inc. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2014. For the quarter, the company reported net sales of $9,216,000 compared to $6,671,000 a year ago. Operating loss was $7,896,000 compared to $6,644,000 a year ago. Loss from continuing operations before income tax expense was $6,871,000 compared to $6,654,000 a year ago. Net loss from continuing operations was $13,227,000 compared to $3,651,000 a year ago. Net loss was $13,426,000 compared to $3,651,000 a year ago. Total basic and diluted GAAP net loss per share was $1.38 compared to $0.26 a year ago. Basic and diluted GAAP loss per share from continuing operations was $1.36 compared to $0.26 a year ago. Total basic and diluted non-GAAP net loss per share was $1.34 compared to $0.14 a year ago. Basic and diluted non-GAAP loss per share from continuing operations was $1.32 compared to $0.14 a year ago. Total net cash used in operating activities was $4,131,000 compared to $4,289,000 a year ago. Capital investments were $458,000 compared to $79,000 a year ago. Non-GAAP net loss from continuing operations was $12,820,000 compared to $1,882,000 a year ago. Free cash flow was $4,558,000 compared to $4,368,000 a year ago. Adjusted EBITDA was $5,724,000 compared to $3,599,000 a year ago. The 38% increase was driven by a 66% increase in volume that more than offset a 17% ASP decline. The volume improvement was driven by growth with new Chinese customers, including certain other OEM partners. The higher non-GAAP net loss per share was primarily due to the recording of a non-cash valuation allowance in the fourth quarter of 2014.

For the year, the company reported net sales of $39,288,000 compared to $31,860,000 a year ago. Operating loss was $19,709,000 compared to $25,235,000 a year ago. Loss from continuing operations before income tax expense was $16,201,000 compared to $25,635,000 a year ago. Net loss from continuing operations was $22,733,000 compared to $18,286,000 a year ago. Net loss was $23,617,000 compared to $18,286,000 a year ago. Total basic and diluted GAAP net loss per share was $2.16 compared to $1.32 a year ago. Basic and diluted GAAP loss per share from continuing operations was $2.08 compared to $1.32 a year ago. Total basic and diluted non-GAAP net loss per share was $2.17 compared to $1.00 a year ago. Basic and diluted non-GAAP loss per share from continuing operations was $2.09 compared to $1.00 a year ago. Total net cash used in operating activities was $14,469,000 compared to $21,960,000 a year ago. Capital investments were $3,115,000 compared to $2,238,000 a year ago. Non-GAAP net loss from continuing operations was $22,858,000 compared to $13,824,000 a year ago. Free cash flow was $17,553,000 compared to $25,032,000 a year ago. Adjusted EBITDA was $15,559,000 compared to $17,150,000 a year ago.

The company currently expect gross profit to improve to breakeven in the first quarter of 2015.