Home Tech Disruption is the Aim for Ascent Solar Technologies, Inc. (OTCMKTS:ASTI)

Disruption is the Aim for Ascent Solar Technologies, Inc. (OTCMKTS:ASTI)


Ascent Solar Technologies, Inc. (OTCMKTS:ASTI)

Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) ended Friday down over 14% on heavier than average volumes. Thornton, CO-based Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) is a developer of thin-film photovoltaic modules using flexible substrate materials that are more versatile and rugged than traditional solar panels. Ascent Solar modules were named as one of the top 100 technologies in both 2010 and 2015 by R&D Magazine, and one of TIME Magazine’s 50 best inventions for 2011. The technology represents the cutting edge of flexible power and can be directly integrated into consumer products and off-grid applications, as well as other aerospace applications.

Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) recently released their FY2016 results. Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) posted net revenue of $1.75 million in FY2016, a decline of approximately 73.2% from $6.54 million in 2015. Loss from operations in FY2016, however, improved by $3.1 million, or 11.2% from (-$27.7) million in 2015 to (-$24.6) million. Ascent attributes this to a substantial reduction in SG&A Expenses of 16.9% from $12.4 million in FY2015 to $10.3M in FY2016, lower depreciation and amortization as well as progressive cost reduction initiatives in R&D and manufacturing operations. The revenue decline is a direct result of Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) exit from brick and mortar retail customers due to a number of factors, including the high cost of doing business especially with those who were overly battery centric which is no longer in line with Ascent’s overall roadmap. Also, a major contributor was the price compression being experienced industry-wide.

President and CEO of Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) said “Going forward, we will continue to streamline our business model in an effort to better allocate our resources to be fully focused on our core strength in the developing specialty PV markets with high entry barriers like the military, 1st responders, emergency power, aviation (drones), and space & near-space applications.”

Net loss for FY2016 was (-$38.9) million which included approximately $14.3 million in non-cash interest expense and change in fair value of derivatives & extinguishment of liabilities that were associated with the outstanding convertible notes and convertible preferred stocks. Overall, net loss improved by $6.9 million, or approximately 15% from (-$45.8) million in FY2015 to (-$38.9) million in FY2016.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.