Beginning of the End for Ascent CIGS PV?

New CEO, a reduction in staff and a new market focus. It doesn’t bode well.

Ascent Solar's (NASDAQ:ASTI) stock price was just ravaged today -- it's down 25 percent to $2.15 on news of its most recent press release:

The Thornton, Colorado-based Ascent's product is CIGS PV on flexible plastic substrates, but the firm has never reached critical mass. Ascent's market capitalization is $69 million; the firm had a net loss of $31.2 million for the year ending December 31, 2010 and reported an accumulated deficit of $77.3 million as of December 31, 2010.

All of that on 2010 sales of $811,000.

As reported in their most recent 10K, "We expect to incur net losses for the foreseeable future."

The firm applied for funding under the DOE Loan Guarantee Program for its planned FAB3 production line with a nameplate capacity of 150 MW per year. The DOE is currently performing a due diligence review. The DOE might be a little flinchy on loan guarantees furnished to marginal firms, given the recent political spotlight on these activities.

The firm said its market focus pivot was due to the potential fall in demand of solar following Europe's move to lower subsidies.

Norsk Hydro currently owns approximately 25 percent of Ascent's common stock.

In a global solar market all about ramping-up big and scrubbing cost out, Ascent seems to have surrendered -- resigning themselves to solar luggage and battery chargers a la Konarka. The firm seems to be leaving massive and growing residential, commercial and utility markets to the big boys and the CIGS startups like Solyndra, MiaSolé, NanoSolar, and HelioVolt that are playing a much higher-stakes game.

 

Ascent is altering its business strategy to forego the rooftop market and pursue niche products such as solar luggage. It recently signed a distribution deal with Germany's Sunload Mobile Solutions to provide flexible thin-film PV for portable solar products.