ENFIELD, Conn., July 31, 2013 (GLOBE NEWSWIRE) -- STR Holdings, Inc. (NYSE:STRI) today announced that it expects to record diluted non-GAAP loss per share of $(0.09) and net sales of approximately $7.7 million for the second quarter of 2013 compared to $11.2 million in the first quarter of 2013. Excluding sales to First Solar, the Company's net sales increased 20% compared to the first quarter of 2013. The Company's cash balance as of June 30, 2013 was approximately $72 million. The Company has yet to receive approximately $6 million of anticipated tax refunds.
The Company was notified in July that one of its European customers, Conergy SolarModule GmbH & Co. KG, filed an insolvency petition that resulted in the Company taking approximately $2.1 million of bad debt and inventory-related charges in the second quarter of 2013. The Company is working with the insolvency administrator to determine if any amounts will be recoverable and expects the customer to resume operations during the third quarter. Net sales to this customer were $3.5 million and $5.9 million during the six months ended June 30, 2013 and the year ended December 31, 2012, respectively.
The updated second quarter outlook reflects the Company's current estimates as of the date of this press release and is subject to change based upon further review by management and its independent accountants.
The Company expects to announce results for the second quarter of 2013 and provide updated annual 2013 guidance on August 7, 2013.
About STR Holdings, Inc.
STR Holdings, Inc. is a global provider of encapsulants to the photovoltaic module industry. Further information about STR Holdings, Inc. can be obtained via the Company's website at www.strsolar.com.
This press release and any oral statement made in respect of the information in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to inherent risks and uncertainties. These forward-looking statements present the Company's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business and are based on assumptions that the Company has made in light of its industry experience and perceptions of historical trends, current conditions, expected future developments and other factors management believes are appropriate under the circumstances. However, these forward-looking statements are not guarantees of future performance or financial or operating results. In addition to the risks and uncertainties discussed in this press release, the Company faces risks and uncertainties that include, but are not limited to, the following: (1) customer concentration in our business and our relationships with and dependence on key customers; (2) technological changes in the solar energy industry or our failure to develop and introduce or integrate new technologies could render our encapsulants uncompetitive or obsolete, particularly in China; (3) our ability to increase our market share; (4) product pricing pressures and other competitive factors; (5) excess capacity in the solar supply chain; (6) the extent to which we may be required to write–off accounts receivable, inventory or other assets; (7) trade complaints and lawsuits diminishing the growth of the solar industry; (8) demand for solar energy in general and solar modules in particular; (9) the extent and duration of the current downturn in the global economy; (10) the impact negative credit markets may have on us or our customers or suppliers; (11) the timing and effects of the implementation of government incentives and policies for renewable energy, primarily in China and the United States; (12) the effects of the announced reductions to solar incentives in Germany and Italy; (13) operating new manufacturing facilities and increasing production capacity at existing facilities; (14) volatility in commodity costs, such as resin or paper used in our encapsulants, and our ability to successfully manage any increases in these commodity costs; (15) our dependence on a limited number of third–party suppliers for raw materials for our encapsulants and materials used in our processes; (16) our reliance on vendors and potential supply chain disruptions, including those resulting from bankruptcy filings by customers or vendors; (17) potential product performance matters and product liability; (18) our ability to protect our intellectual property; (19) the impact of changes in foreign currency exchange rates on financial results, and the geographic distribution of revenues and earnings; (20) maintaining sufficient liquidity in order to fund future profitable growth and long–term vitality; (21) outcomes of litigation and regulatory actions; and (22) the other risks and uncertainties described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in subsequent periodic reports on Forms 10–K, 10–Q and 8–K. You are urged to carefully review and consider the disclosure found in our filings which are available on http://www.sec.gov or http://www.strsolar.com. Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove to be incorrect, actual results may vary materially from those projected in these forward‑looking statements. We undertake no obligation to publicly update any forward‑looking statement contained in this release, whether as a result of new information, future developments or otherwise, except as may be required by law.
CONTACT: STR Holdings, Inc. Joseph C. Radziewicz Vice President and Chief Financial Officer (860) 758-7325 email@example.com
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