Berlin, May 12, 2010 – Berlin-based SOLON SE, today published its interim report for the period ended March 31, 2010. The report shows that the Company more than doubled its Group revenue compared to Q1 2009. This favorable development was due in particular to the high demand for solar systems in the German market which proved to be very robust despite the long winter. In contrast, the system technology business continued to lag behind expectations. In the opinion of management, this was due not least to the wait-and-see attitude of customers related to the fact that progress was not achieved in resolving the Group's funding situation until late March.
The most important performance indicators of the first quarter of 2010 are broken down as follows: Group revenue rose by 132% to €88.8 million (Q1 2009: €38.3 million). EBIT and EBITDA also improved significantly to an EBIT loss of €6.6 (Q1 2009: EBIT loss of €20.7 million) and EBITDA loss of €2.4 million (Q1 2009: EBITDA loss of €16.2 million). SOLON SE recorded a net loss after minority interests of €8.2 million in the first three months of 2010 (Q1 2009: net loss of €19.2 million). There were no one-time effects in the period under review. The net loss per share declined to €0.65 in the first quarter of 2010 (Q1 2009: net loss per share of €1.53). More than 40% of Group revenue in the first quarter of the year was generated outside of Germany; the production volume amounted to 41 MWp.
The pickup in demand in the components business is also reflected in incoming orders, including a multiyear agreement signed in the first quarter with the German solar wholesaler entrason gmbh with a scope of delivery of 20 MWp in 2010.
The higher production output planned for 2010 increased the carrying amount of inventories to €110.9 million (December 31, 2009: €90.6 million). This resulted in a negative operating cash flow of €31.0 million in the first three months after a negative cash flow of €39.6 million in Q1 2009. The higher inventories caused working capital to increase slightly to €175.6 million.
Net debt as of March 31, 2010 amounted to €384.9 million. In late March, an agreement was reached with the banks concerning the restructuring of the Group's medium-term financing. The full credit documentation is currently being finalized.
Based on the current business performance, the Management Board reaffirms its target of closing fiscal year 2010 with a double-digit percentage increase in revenue and a break-even Group operating result.
Source: SOLON SE