While a diversified technology portfolio can assist production equipment suppliers ride out downturns in certain sectors, Singulus improvements in solar shipments in 2015 has not been able to allow the company to avoid burning 19.2 million (US$20.45 million) in cash in nine months.
Singulus reported its financial results for the first nine months of 2015 this week, in which it reports that its available liquid funds have shrunk from 35.8 million ($38.2 million) at the start of Q1, to 16.6 million ($17.7 million) at the end of Q3.
On an operating basis, Singulus has lost 13.9 million ($14.8 million) in the first nine months of 2015. As bad as this is, it is an improvement on a loss of 38.7 million ($41.2 million) Y/Y.
The poor result comes as orders have almost doubled Y/Y. Singulus booked 84.4 million ($89.9 million) in orders for the first nine months of 2015, compared to only 48.4 million ($51.5 million) the previous year. Q3 has, however, been weak, with orders of only 11.3 million ($12.3 million), down from 23.2 million ($24.7 million) Y/Y. Order backlog at the end of Q3 is 40.7 million ($43.3 million), considerably higher than 15.9 million ($16.9 million) at the same time last year.
While orders have improved significantly Y/Y, Singulus has been forced to adjust is earnings expectations for 2015. A lack of expected new orders for Blu-ray manufacturing equipment is the major reason cited for the shortfall.
The company is presumably hoping that its relatively strong showing in the solar sector will help convince investors to agree to a debt-equity swap. The proposal will be presented first to bond and then shareholders at an extraordinary general meeting. The company has not specified a date for this.
Singulus has had success with its Silex II wet chemistry tool in 2015, which is deployed in the production of high efficiency solar cells. It is understood to have booked a sizeable order for this tool from a manufacturer outside of Asia. Singulus has also been supplying Hanergy with CIGS vacuum deposition tooling.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.