Second-Quarter 2006 Financial Results
Net loss attributable to common stockholders for the second quarter of 2006 was $7.5 million, or $0.11 per share. This figure includes approximately $1.7 million of Evergreen Solar's share of net losses associated with the production ramp-up at EverQ and compares with a net loss of $4.5 million, or $0.07 per share, for the second quarter of 2005 and a net loss of $8.1 million, or $0.13 per share, for the first quarter of 2006. Evergreen Solar recorded equity-based compensation expenses of approximately $1.8 million during the second quarter of 2006.
Second-quarter 2006 product gross margin was positive 4.1 percent, compared with positive 6.2 percent for the second quarter a year ago and negative 12.5 percent for the first quarter of 2006. The expected year-over-year decrease in product gross margin primarily resulted from (i) negative gross margin recorded by EverQ associated with incremental manufacturing start-up costs, (ii) incremental costs associated with completing the conversion to thin-wafer production in Marlboro and (iii) increased stock-based compensation expense related to Evergreen Solar's equity compensation plans incurred as a result of the adoption of new financial reporting standards. The 16.6 percentage point improvement in gross margin from the first quarter of 2006 was largely the result of the incremental $10.7 million of revenue generated from product manufactured by EverQ.
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