• Friday, November 20, 2009 Latest Update: 4:41PM
ghayes | March 2, 2009 at 9:22 AM 3 Comments

New Strategy Forces Entech Into Layoffs

It’s not a sunny day for the staff at Entech Solar, which plans to lay off 40 percent of its employees as it retools itself.

Earlier this year, World Water & Solar, which garners most of its revenue from commercial solar installations, and Entech, a solar panel maker, merged to market a somewhat unusual system that combines silicon photovoltaic cells and a fluid-filled heat pipe. The PV cells provide electricity while the pipe can harvest heat for rooms or hot water. The companies are part of the far-flung Quercus Trust portfolio.
The combined system harvests 60 percent of the energy the sun puts out, according to Frank Smith, CEO of Entech.

“We will continue to search for opportunities to reduce spending, decrease our cash burn, and allocate resources efficiently as we lay a framework to reach profitability and increase shareholder value,” said Smith in a prepared statement.

The merger in part took place to turn around continuing losses at World Water. The company reported a net loss of $7.4 million in the third quarter of 2008, before the merge with Entech Technologies.

The Entech layoffs could be a warning sign for competitors, like Distributed Solar Power and Millennium Electric from Israel and Cool Energy in Boulder, Colo. Like Entech, these companies are trying to break into the broader solar market with two-way devices.

Comments [3]

  • layoffs 03/3/09 4:18 AM

    David Gelbaum of the Quercus Trust is chairman of the board.  Your facts are wrong, they merged with Worldwater before the 3rd quarter.  The merger was originally described as giving Worldwater a competitive edge selling ENTECH’s CPV product and they announced over 100MW of deals in Spain and Italy that never materialized.  Saying the merger was to market Entech’s THERMOVOLT product seems a little simplistic.  Worldwater bought Entech for over $40million in cash and stock.

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  • layoffs 03/3/09 7:59 AM

    “The Entech layoffs could be a warning sign for competitors, like Distributed Solar Power and Millennium Electric from Israel and Cool Energy in Boulder, Colo. Like Entech, these companies are trying to break into the broader solar market with two-way devices.”

    Why in the world would you say that?  They appear to not be ready to sell their cpvt product yet and the layoffs are at the Worldwater offices, not at ENTECH Texas.  The layoffs were expected in N.J. and Calif as they exited the flat panel system business.  What happens at ENTECH cannot be simply extrapolated to other pvt businesses.  Few companies have Worldwater’s recent history: doubling their head count with increasing losses, replacing management and the board of directors and basically closing down their old revenue stream by exiting the flat panel system business.

    Reply
  • Peter Lowenthal 03/4/09 6:49 AM

    I was reviewing your GreenTech Market taxonomy chart and would like to know where your chart would include solar thermal technology for generating heat not electric power? So often overlooked as a demand side management and a generation technology, solar heating is only a conversion factor away from producing power instead of thermal energy. We need to begin to view heating in kWhrs so that we can equate them to therms and therms are actually used in turbines do generate kWhrs so we can compare them more accurately. This is a taxonomy issue and it is retarding the use of solar thermal applications in favor of more costly but more adaptable electrical systems. Today we can place kWhrs meters on solar thermal systems to show the energy they produce. Maybe with this device we will be considered a generation technology maybe not.

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