Energy Conversion Devices, Inc. (ENER)

Last Trade:	29.65
Trade Time:	Feb 9
Change:	5.85 (16.48%)

Energy Conversion Devices Inc., which makes rechargeable batteries and thin-film materials used in solar-powered devices, said on Thursday its second-quarter loss narrowed, but revenue fell 5 percent, missing Wall Street forecasts.

The company also said it does not think it will reach sustained profitability in fiscal 2007.

Energy Conversion reported a quarterly loss of $2.9 million, or 7 cents per share, compared with a loss of $5.7 million, or 19 cents per share during the 2005 period.

Revenue fell 5 percent to $22.9 million from $24.3 million.

Analysts polled by Thomson Financial forecast a loss of 6 cents per share on revenue of $32.6 million.

Revenue from the company's United Solar Ovonic subsidiary fell to $19.2 million from $21.7 million during the same period a year earlier. The company said costs related to production capacity ramp up at a new manufacturing facility pinched gross profit margins at United Solar during the quarter to 16 percent from 21.2 percent.

The company also said it no longer expects to achieve sustainable profitability by the end of fiscal 2007, as previously projected. Energy Conversion Devices Chairman and Chief Executive Robert C. Stempel cited delays in securing additional funding for its emerging technologies. Stempel added that the company would pursue funding and restructuring alternatives to achieve its goal in the near term.