SMF notes ENER reported earnings last night and lowered its FY09 rev guidance to $390-440 mln, from $455-485 mln, previously. Importantly, the co is not renegotiating contracts on price, but instead is working with its customers' financing partners to assist with the technical and performance data supporting ECD's solar PV technology.
They note ENER's margins are second only to FSLR. In addition, the co grew its pipeline to $2.4 bln from $2.0 bln in the preceding quarter and now has 50% of its product shipping into the stronger than PV channel, construction materials channel.
Finally, they believe the co has lots of room for further cost reductions, which will continue to enhance gross margins. They believe ECD is well positioned to weather the credit and pricing storm expected in CY09 and suggest investors interested in exposure to the solar power market to buy ENER shares.
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