Ascent Solar Tech (NASDAQ: ASTI)
Ascent Solar Tech is having a great time in pre-market trading today, and for good reason. The company announced preliminary fourth quarter and full year revenue results, causing quite a bit of investor excitement. Today, we’ll talk about the preliminary results that were released, how the market reacted to the news, and what we can expect to see from ASTI moving forward.
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ASTI Preliminary Results For Q4 & FY15
As mentioned above, ASTI is having a strong time in the market at the moment as the result of announcing its preliminary Q4 and full year revenue results. According to the announcement early this morning, ASTI generated $2.4 million in quarterly net revenue in the fiscal fourth quarter. This represents a 90% quarter-over-quarter growth as the company produced $1.25 million in net revenue for the third quarter. When it comes to full year revenue, the company proved growth of about 23% year-over-year by generating net revenue in the amount of $6.5 million for 2015. In their announcement, Ascent Solar also announced that it expects to file its annual financial report in mid-March after it has had the time to complete annual closing procedures and external audits. In a statement, Victor Lee, President and CEO at ASTI had the following to say:
“The reported revenue falls marginally short of our earlier $7.2M projection as a result of delays in multiple high-value PV projects, as well as the constraint of our balance sheet restructuring exercise, which began in September 2015 and impacted our operations… In addition, consumer sentiment and spending also weakened across the board towards the end of last year, as witnessed by many consumer product companies. Despite the challenges, we concluded the year with moderate but healthy growth and have laid a very strong foundation for revenue growth heading into 2016. In particular, the achievement of the listing of our products with the GSA after a full year of hard work, and our expanded retail networks should support our continued growth well.”
How The Market Reacted To The News
As investors, we’ve learned that there are few factors that have the potential to move the market as much as proof that a company is doing well with regard to revenue growth. So naturally, we’re seeing strong gains on ASTI as a result of the announcement of the strong fourth quarter and overall growth throughout the year 2015. While we are still in pre-market trading, it’s clear that investors are happy with the announcement. Currently (9:05), ASTI is trading at $0.13 per share after a gain of 78.03% so far today.
What We Can Expect From ASTI Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from ASTI. This opinion stems from two big pieces of news that became available last year. First and foremost, as Mr. Lee mentioned, Ascent Solar was granted the GSA Schedule 56 contract last year. Under this contract, government customers will find it easy to purchase ASTI products. This includes all branches of the US Armed Forces, the US Forest Service, and several other federal entities. There’s no doubt in my mind that this will lead to growth. Also, ASTI landed two patents late last year that will help them ensure that the competition won’t be able to keep up with their innovation. All in all, the company is doing incredibly well and I’m expecting to see long-run gains on the stock.
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What Do You Think?
Where do you think ASTI is headed moving forward? Let us know your opinion in the comments below!
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