This is the prospectus for Solyndra...keep in mind this prospectus was released after they filed for the fed loan...
http://sec.gov/Archives/edgar/data/1...htm#toc15203_2
In 2009 they had total revenue of 100 million
We have incurred significant net losses since our inception and our ability to achieve or sustain a positive gross margin and profitability depends on our ability to significantly increase our production capacity and reduce our manufacturing cost per watt faster than our average selling prices decrease.
We have incurred significant net losses since our inception, including a net loss of $114.1 million in fiscal 2007, $232.1 million in fiscal 2008 and $172.5 million in fiscal 2009, and we had an accumulated deficit of $557.7 million at January 2, 2010. We expect to continue to incur significant operating and net losses and negative cash flow from operations for the foreseeable future. Moreover, we expect that average selling prices of our photovoltaic systems will continue to decline until we offer our products at a price per watt that is comparable to conventional energy sources and alternative distributed generation technologies. The success of our business depends on our ability to significantly increase our production capacity, including the build-out of Phase I of Fab 2, and significantly reduce our manufacturing cost per watt. If we fail to achieve these objectives and reduce our manufacturing cost per watt faster than our average selling prices decrease, our business will be materially adversely impacted.
In particular, a key component of our expansion plan is the construction and build-out of Fab 2. We estimate that the cost, which is comprised of the total capital required for the land, buildings, improvements, manufacturing equipment and certain sales, marketing and other start-up costs, for Phase I and Phase II of Fab 2 will total approximately $1.38 billion. Although we have already secured funding for Phase I with a DOE guaranteed loan facility and a prior round of equity financing, we still need financing for Phase II. We estimate the cost of Phase II will be approximately $642 million. On September 11, 2009, we applied for a second loan guarantee from the DOE, in the amount of approximately $469 million, to partially fund Phase II. If our application is approved, we intend to fund Phase II with the proceeds from the loan and this offering. Although the DOE determined on November 4, 2009 that our initial application was complete, and we submitted the second part of the application on November 17, 2009, there is no guarantee that the DOE will approve our application in the full amount requested or at all.
Our ability to achieve broader market acceptance for our photovoltaic systems will be impacted by a number of other factors, including:
whether system owners will adopt our CIGS thin film technology in a cylindrical module, which is a new technology with a limited history with respect to reliability and performance;
whether system owners will be willing to purchase photovoltaic systems with an expected 25-year lifespan from us given our limited operating history;
the ability of prospective system owners to obtain long-term financing for our photovoltaic systems on acceptable terms or at all;
our ability to produce photovoltaic systems that compete favorably against other photovoltaic systems on the basis of price, quality and performance;
Most of our manufacturing equipment is customized, and either we manufacture the equipment ourselves or provide our designs to third-party equipment manufacturers. If we are unable to manufacture our equipment for the costs we have budgeted or if our manufacturing equipment fails, we could experience cost overruns, delays in our expansion plans or disruptions in production and may be unable to satisfy customer demand.
Originally Posted by Midtowner
