Earnings Expert, LLC

The company completed its refinancing and a sale of shares at the beginning of June, creating the opportunity for the company to return to profitable growth. Additionally, the components business improved  as the economic situation improved in Germany. While the company made significant improvements in the second quarter 2010, it still has a long way to go in order to be completely out of the woods.

Despite improved business during the second quarter 2010, poor financial performance in fiscal year 2009 pushed many of the company’s rankings to the bottom half of its peer group. The company relies heavily on debt, which has put its debt-to-equity ratio at 36^th among its peer group and cash-to-debt ratio at 29^th. Poor inventory management has the company ranked 28^th on the cash conversion cycle. Revenue per employee has been relatively strong over the past two years, despite a drastic decline in revenue from 2008 to 2009. The company has a strong last 12-month operating cash flow relative to its peers. The company is ranked 13^th among peers, up from 17^th in the first quarter 2010. Continual reduction in capital expansion, combined with a strong operating cash flow has improved the company’s ranking on a free cash flow-to-net income basis to third from ninth.

The company provides good disclosure in its quarterly filings. It provides full footnote disclosures and a statement of cash flows. Furthermore, the company provides total megawatts produced and production capacity in its quarterly filings. The company does not provide revenue and cost of goods sold by product on an annual or quarterly basis, but it does provide revenues by segment on an annual basis. Complete warranty data can only be found in annual filings and allowance for doubtful accounts information cannot be found in annual or quarterly filings.