Photovoltaic products company STR Holdings Inc. said Monday its third-quarter profit fell 11 percent as an oversupply of solar modules cut demand and offset the benefit of lower expenses.
The company, which last week completed its initial public offering of common stock, said net income for the three months ended Sept. 30 slipped to $7.9 million, or 21 cents per share, compared with $8.9 million, or 24 cents, in the year-earlier period, said the company, which closed its initial public offering last week.
Excluding one-time items, STR posted adjusted earnings per share of 32 cents, 1 cent less than the year-earlier adjusted figure.
Sales declined to $67.3 million from $76.5 million.
Selling, general and administrative expense for the third quarter of 2009 declined by $2.3 million, or 19 percent.
STR generated $15.7 million of operating cash flow, up 19 percent from $13.2 million of the same quarter last year.
"This increase in free cash flow was primarily due to lower spending on capacity expansion and improved working capital performance," the company said in a statement.
STR makes solar module encapsulants and provides consumer product quality assurance services. Encapsulants are specialty sheets and film that hold a solar module together and protect the semiconductor circuit.
In afternoon trading, the stock rose 37 cents, or 2.9 percent, to $13.22.