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ECD ANNOUNCES YEAR-END RESULTS

 TROY, Mich., Sept. 10 /PRNewswire/ -- Energy Conversion Devices, Inc. ("ECD") (NASDAQ: ENER) today reported its preliminary unaudited operating results for the fiscal year ended June 30, 1993, as follows:
 ENERGY CONVERSON DEVICES, INC.
 Year Ended June 30,
 1993 1992
 (As Restated)
 (in thousands)
 REVENUES
 Revenues from business agreements $ 9,351 $ 7,202
 Product sales 2,731 7,039
 Other 316 382
 TOTAL REVENUES 12,398 14,623
 TOTAL EXPENSES 18,051 21,063
 LOSS FROM OPERATIONS (5,653) (6,440)
 OTHER INCOME (EXPENSE):
 Gain on disposition of
 investment in OIS 283 5,720
 Loss on disposition of
 investment in OSMC --- (1,786)
 Interest expense (303) (190)
 Interest income 110 343
 Other nonoperating income - net 42 174
 TOTAL OTHER INCOME 132 4,261
 NET LOSS $(5,521) $(2,179)
 NET LOSS PER SHARE $ (.75) $ (.32)
 As a result of ECD's disposition of its investment in Ovonic Synthetic Materials Company, Inc. ("OSMC") discussed below, the results of operations for the year ended June 30, 1993, do not include any of OSMC's operating results.
 ECD had a net loss in the year ended June 30, 1993, of approximately $5,521,000 compared to a net loss of approximately $2,179,000 for the year ended June 30, 1992. The change from a net loss of $5,521,000 in the year ended June 30, 1993, compared to net loss of $2,179,000 from the year ended June 30, 1992, was due principally to gain on disposition of investment in OIS Optical Imaging Systems, Inc. ("OIS") in 1992.
 The increase in revenues from business agreements from $7,202,000 in the year ended June 30, 1992, to $9,351,000 in the year ended June 30, 1993, was due to increased revenues under agreements in 1993 with the United States Advanced Battery Consortium, the U.S. Department of Energy's National Renewable Energy Laboratory, Snoh Industrial Co. Ltd., a Japanese battery manufacturer, and Daido Steel Co. Ltd., partially offset by decreases in 1993 revenue under agreements with Inland Steel, Hitachi-Maxell, Ltd., Hyundai Motor Company, Harding Energy Systems, an Automobile Manufacturer, a European Automobile Manufacturer and Mitsubishi Materials Corporation and the fact that OSMC revenues of $417,000 from business agreements were included for the year ended June 30, 1992.
 Product sales decreased from $7,039,000 in the year ended June 30, 1992, to $2,731,000 for the year ended June 30, 1993, due to the completion of the construction of equipment under machine-building contracts in 1993 with Kvant, ECD's photovoltaic (solar) joint venture partner in Russia, and due to the fact that OSMC product sales of $1,441,000 were included in the year ended June 30, 1992, partially offset by a contract in 1993 with an Italian energy company.
 Subsequent to the issuance of the June 30, 1992, consolidated financial statements, ECD restated its financial statements to (1) record the loss as a result of disposition of its investment in OSMC on Aug. 18, 1993, of $1,786,000 during the fiscal year 1992 (2) defer certain non-refundable advance royalty payments recognized as revenue in 1991 and 1992 and (3) net the carrying value of its investment of $1,734,000 in United Solar Systems Corp. ("USSC"), ECD's photovoltaic joint venture with Canon Inc., against the 1990 capital contribution from Canon Inc. Accordingly, additional paid-in capital as of July 1, 1990, has been restated from $149,520,000, as previously reported, to $147,786,000. As a result of these restatements, ECD has reported a loss of $2,179,000 in the year ended June 30, 1992, rather than a previously reported net income of $388,000. The change from net income to net loss is principally as a result of the loss of $1,786,000 on disposition of its investment in OSMC which occurred on Aug. 18, 1993, and revenues from business agreements for the year ended June 30, 1992, have been revised to $7,202,000 as compared to $7,877,000 previously reported. Net loss for the year ended June 30, 1991, as restated is $4,928,000 compared to the previously reported net loss of $2,664,000. The increase in net loss is principally as a result of the deferral of non-refundable advance royalties received. As a result of these restatements, revenues from business agreements for the year ended June 30, 1991, have been revised to $6,637,000 as compared to $8,841,000 previously reported.
 ECD will be required to secure additional funding before mid-December 1993 in order to continue operations at the present level beyond that time. Currently, ECD is in discussions and negotiations to procure additional funding through new business, licensing and financing agreements as well as the sale of ECD or Ovonic Battery Company stock. No assurance can be given the company can obtain additional funding through these sources.
 ECD is a leader in the synthesis of new materials and the development of advanced production technologies and innovative products. Since its founding in 1960, ECD's research and development efforts have focused on amorphous and disordered materials. ECD has developed its Ovonic materials, production technology and products in the areas of energy, information and synthetic materials.
 -0- 9/10/93
 /CONTACT: Nancy M. Bacon, Senior Vice President, Government Contracts and International Projects, or Kenneth A. Pullis, Acting Chief Financial Officer, of ECD, 313-280-1900/
 (ECD)


CO: Energy Conversion Devices, Inc. ST: Michigan IN: SU: ERN

SB -- DE029 -- 0933 09/10/93 17:29 EDT
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Date:Sep 10, 1993
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