As Meyer Burger gets into discussions with its largest shareholder Sentis Capital to create long-term shareholder value, the management said it continues to evaluate all strategic, commercial and capital market options for the company. (Photo Credit: Meyer Burger Technology AG)
- Meyer Burger’s preliminary analysis of its 2019 fiscal year finances shows its incoming orders declined by as much as 32% on annual basis
- Orders in hand for the company as on December 31, 2019 added up to CHF 105 million
- Its net sales last year brought in CHF 262 million which was expected since it underwent a major divestment drive
- The strategic deal with REC Solar is at an advanced stage of negotiation
- The potential deal it announced earlier with an unidentified North American start-up is yet to close
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With restructuring measures being pursued by Meyer Burger Technology AG under which it has divested stakes in several of its businesses in the past year, the Swiss PV production equipment manufacturer saw a drop of approximately 32% in its incoming orders for 2019.
Preliminary unaudited results for last year as shared by the company shows its incoming orders for 2019 added up to CHF 188 million ($192.5 million), compared to CHF 326.8 million in 2018. Moreover, orders on hand as of December 31, 2019 represented a value of CHF 105 million ($107.5 million) vis-à-vis CHF 200 million a year back.
Meyer Burger reported a book-to-bill ratio for fiscal year 2019 at 0.72 versus 0.59 in 2018.
Management further reported net sales for the company to have been broadly in line with analyst consensus at CHF 262 million ($268 million) representing an 27% of organic decline in sales for continuing operations leaving it with in hand cash of CHF 62 million ($63.5 million) of which CHF 26 million ($26.6 million) is with limited availability.
The manufacturer says it will continue to evaluate all strategic, commercial and capital market options with Credit Suisse engaged to help as financial advisor. It has also entered into discussions with its largest shareholder Sentis Capital PCC ‘with the goal of creating significant long-term shareholder value for all stakeholders’. This sounds like good news as Sentis had been actively opposing Meyer Burger’s decision to divest stakes in its own technology. Their disagreements have been out in the open for long even though the management and company board managed to thwart Sentis representation on the company board.
Providing an update to its August 2019 announcement to strike an exclusivity deal with REC Solar for GW level heterojunction (HJT) and smart wire connection technology (SWCT), the management said negotiations between the two are progressing towards a close strategic cooperation. It also shared that its previously announced framework contract for HJT core equipment with an unidentified North American cell manufacturing start-up is not final as yet.