With PV Shipments Lower Than Expected, Arise Technologies Slides

Arise Technologies Corp. (APVNF.PK) shares were down on Wednesday morning after the solar cell manufacturer announced third quarter results, including volume shipments that have fallen off pace expectations. The stock was down 27% to C$0.53 at 11 a.m. ET.

Arise said third-quarter 2008 sales of PV cells amounted to 5 megawatts, generating C$15.6-million of sales. The company expects to ship 7 to 8 megawatts of PV cells in the fourth quarter for sales of C$21 to C$24-million. 

Bart Tichelman, president and CEO, said:

That will bring our PV shipments in the second half of this year to 12MW-13MW for C$36 to C$39 million in sales.  This is below the shipment level previously announced of 14-16MW for C$42-C$48 million in sales.

Mr. Tichelman said the slower-than-expected ramp up was due to unforeseen equipment downtime. He added that Arise may incur a four-to-eight week delay in the planned start-up of Line 2 at the Bischofswerda plant due to a a manufacturing delay for a key piece of equipment.

The company's Q3 net loss jumped to C$8.2-million or C$0.06 per share, compared with a net loss of C$2.7-million or C$0.04 per share this time last year as operating expenses ballooned from C$2.7-million a year ago to C$5-million.

Arise had positive working capital of C$23.7-million at the end of the third quarter, down from C$46-million at the end of the 2008 second quarter. Cash and cash equivalents totaled C$21.8 million, versus C$42.2 million at end of Q2.