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Energy Conversion Devices, Inc. (ENER) Captures Investor Attention Following Earnings Report

Energy Conversion Devices, Inc. (ECD) is a name that has been running across the lips of many investors, largely due to an impressive third quarter, fiscal 2008. The company is known for developing building-integrated rooftop arrays which convert the Sun’s energy to electricity using proprietary solar technology.

Quarter results caused a 40 percent spike in share value as word of ECD’s success spread rapidly throughout the investment community. Consolidated revenues totaled $70 million; 24 percent higher than the previous quarter, and an astonishing 155 percent increase over third quarter fiscal 2007 revenues. Sales of solar products accounted for $64.9 million, which represents a sequential increase of 31 percent and an increase over the corresponding prior-year quarter of 193 percent. Net income weighed in at an even $7 million, or 0.17 per share. This figure was a breath of fresh air, negating last quarter’s net loss of $5.4 million.

Gross margin on product sales in the solar industry was 30.7 percent, as compared with the second quarter, in which they reached only 19.2 percent. This helped facilitate ECD’s becoming a profitable corporation. On this, President and CEO Mark Morelli stated, “I’m pleased to report that we’ve reached profitability, and we’ve done so through sustainable changes to our business. This is a key milestone in our company’s history, and a testament to the commitment and hard work of our colleagues.”

It appears that ECD will continue to make strides in an industry that will only receive more attention as time wears on and resources wear out. Renewable energy is the fastest growing energy sector, and the future of our planet depends upon it.

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