Enfield’s STR Holdings Inc. said it will continue to see lower net sales in the second quarter, due to the loss of its largest customer earlier this year as well as a recent insolvency petition by a European customer.
The photovoltaic encapsulant provider expects to report second-quarter net sales of $7.7 million in its earnings report next week, down 69 percent from the same quarter last year.
STR posted $11.2 million in net sales for the first quarter, down 64 percent from the first quarter of 2012.
First Solar accounted for 41 percent of the company’s business in 2012, but it began sourcing encapsulant from a different supplier in the first quarter of 2013, according to public filings. The loss forced STR to cease manufacturing at its East Windsor plant and to lay off employees.
STR also said today it was notified in July that its customer, Conergy SolarModule GmbH & Co., filed an insolvency petition that will result in STR taking $2.1 million of bad debt and inventory related charges in the second quarter. Net sales to Conergy were $9.4 million for the first half of 2013.
STR said it’s working with an insolvency administrator to determine if any money can be recovered. It expects Conergy to resume operations during the third quarter.
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