ECD realigns solar capacity, snips more than 100 jobs

SAN JOSE: As part of its overall cost reduction activities, solar cell maker Energy Conversion Devices Inc. is realigning solar manufacturing capacity and eliminating 140 jobs in its United Solar business say reports.

The changes will be effective in the fall of 2010, and sources say the company will shift certain final assembly operations from its Auburn Hills, Mich. campus to its Tijuana, Mexico facility but will continue to manufacture its proprietary solar cells at the Auburn Hills campus.

The shifting of final assembly operations to the new location is what prompts the axing of 140 jobs at Auburn Hills.

ECD recently discussed its strategic plans to reaching 12 percent conversion efficiency by 2012 with a cost-per-watt of less than one dollar. The company is targeting more than 20 per cent conversion efficiency in the years that follow.

In May, financial results for the third quarter of its fiscal year 2010 were announced. These included a non-cash impairment charge of $358 million. Total revenues for the third quarter of fiscal 2010 were $72 million, an increase of nearly ten percent from $66 million in the third quarter of fiscal 2009, and a rise of 36 percent from $53 million in the second quarter of fiscal 2010.

Net loss for the third quarter of fiscal 2010, was $385 million, or $9.10 per diluted share. Excluding the impairment charge, the quarter's net loss was $27 million, or $0.64 per diluted share. The company reported net income of $1 million, or $0.03 per diluted share, in the third quarter of fiscal 2009 and a net loss of $39 million, or $0.92 per diluted share, in the second quarter of fiscal 2010.