May 26, 2006. 01:00 AM
cambidge—ATS Automation Tooling Systems Inc. is laying off 60 workers at its pioneering solar-power subsidiary over problems commercializing the technology.The Cambridge, Ont.-based company also said yesterday it has written down the value of Spheral Solar Power by $65 million after tax, causing it to post a loss of $65.6 million in the fourth quarter ended March 31.The news, coming on top of ongoing challenges faced by ATS's largest business, its automation systems group, prompted investors to unload the company's stock. Its shares plunged more than 23 per cent yesterday, falling $3.50 to close at $11.50.Spheral's flexible, thin-film solar technology is regarded as a breakthrough because it can be integrated into roofing materials, vehicle roof-tops and other applications that aren't suitable for rigid solar panels.ATS, which has invested more than $120 million in Spheral over four years, has produced high-efficiency cells and modules that are currently being field tested. But, it said it will take at least 12 months of intensive engineering and development to solve technical problems preventing it from profitably making the product in large volumes. Shortcuts the company took to go quickly from development to full-scale production "were not the right ones," said Syl Ghirardi, president of ATS's solar group."Now what we are trying to do is take the time to do it right," he told analysts in a conference call on fourth-quarter results.Ron Jutras, ATS's chief executive officer, stressed that the writedown was required because of accounting rules and does not indicate a loss of confidence in the technology....read more
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