Photowatt will wachsen und soll von ATS abgespalten werden - 500 Beiträge pro Seite

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ATS retooling may be powered by solar
Author: Fabrice Taylor

July 11, 2007

ATS Automation investors have some work to do over the next month or so.

The company is issuing rights to shareholders as part of an overhaul of operations. The rights will give shareholders the opportunity to buy stock on the cheap. Alternately, they can be sold on the market until they expire.

If you\'re a long-time investor, you\'re probably more inclined to sell than to exercise and put more money into the business. The story has been a cascade of disappointment in recent years.

But consider your decision carefully because it looks like, at long last, ATS is turning the corner. The stock should come back to life if the company executes its plan properly.

ATS is really three companies. There\'s the core Automated Systems Group (ASG), which designs and builds automated manufacturing systems that build components for cars, electronics, the health care industry and so on. It used to be a very good segment, earning operating margins of 20 per cent in fiscal 1999. It\'s fallen on hard times today for two reasons. The rising dollar is one. Another is the migration of manufacturing to cheaper locales like Asia and Mexico. Proximity counts in this industry, and as the customers moved away, so did the revenue. ASG is still profitable but the margins have slipped to around 2 per cent. The division contributes about two-thirds of revenue.

The Precision Components Group (PCG) cranks out widgets, mainly for the auto industry. Manufacturing for a wounded industry is not a great way to make money and, not surprisingly, PCG has been bleeding for years. It\'s probably too small to generate earnings on its own and would be better off as part of a bigger group. This unit makes up about 12 per cent of revenue.

Finally, there\'s the solar division called Photowatt, which has a bright future, so to speak, but has been a black hole for expenses. Solar is, or was, two segments.

The first, based in Europe, makes conventional, rigid panels - the kind that power highway signs here, and, in Europe and Japan, lots of homes. It\'s vertically integrated and very profitable, earning operating margins of around 12 per cent on sales of $151-million in the latest fiscal year.

The second solar segment, until very recently, was trying to develop a technology that would allow for flexible solar panels. The company invested $150-million into a so-far failed attempt to commercialize the technology. I\'ll get back to this unit in a moment.

In a nutshell, these are the segments and the problems. They\'re not pleasant, but nor are they too hard to fix, and management, prodded by big shareholders who care, is finally starting to move.

The first step is the rights issue, which will raise $103-million. The proceeds will be invested in Photowatt, the solar division, to expand its conventional panels business. The money will also help secure silicon supply, which is very tight. This should go some way to undoing the damage ATS did by diverting capital into the flexible-panel endeavour. The funding of flexible panels, meanwhile, has stopped and the company may sell or license the technology. Photowatt should be valuable because it has been in business a lot longer than many other startup solar ventures, even if it fell behind because it spent too much time on the flexible panels.

PCG will also probably be sold. Proceeds will be small but the real value from divesting it, as we shall see, will be evident in ATS\'s market capitalization.

ASG has already started to restructure, cutting staff and shutting down facilities. It\'s also expanding in other places to pick up more business. ASG operates in an industry with certain barriers to entry and lots of privately owned small operators that can be bought and tucked in neatly and cost effectively. The industry has very good prospects and over time ASG\'s revenue should grow and its margins rebound nicely.

The final denouement will most likely see ATS continue as a pure automation company with PCG sold off and the rejuvenated solar division spun off to shareholders.

This is where the numbers get interesting. ATS has a market cap of $555-million. The company has an investment in Canadian Solar Inc., a small public company worth $20-million. Management implies that PCG is worth, at most, $40-million. Call it $30-million. Meanwhile, a poll of analysts with an opinion on the matter pegs ASG\'s value at about $325-million. We\'ll use $300-million.

The math says solar is valued at $205-million, or 1.4 times sales. Let\'s assume that the $100-million injection of liquidity into Photowatt brings the multiple to 2.5 times sales - still below average. That means the investment adds 30 per cent to the market cap, which more than offsets the 23-per-cent per-share dilution of the rights issue.

And that doesn\'t factor in the earnings potential of a restructured automation group, which over time could really surprise skeptical investors.

ATS has some fine assets in its collection. The value-surfacing exercise it\'s going through, if it works out, will add a lot more value than the investment dollars suggest.

If you get a knockout price for your rights, sell them. Otherwise, exercise and let it ride.

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Photowatt International:

Umsatz 2006: 121,916 US$
Photowatt International’s earnings from operations in fiscal 2006 were $19.8 million, or 81% higher than in fiscal 2005, and represented 16% of Photowatt International’s revenue, compared with 10% in fiscal 2005.

Setzt man branchenübliche Bewertungsmaßstäbe wie KUV oder KGV an, kann man erkennen, daß allein der Solarbereich die aktuelle Marktkapitalisierung von ATS Automation Tooling Systems rechtfertigen würde.

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Sonstige Informationen:

Aus dem Prospekt:

Photowatt International’s earnings from operations in fiscal 2006 were $19.8 million, or 81% higher than in fiscal 2005, and represented 16% of Photowatt International’s revenue, compared with 10% in fiscal 2005. This increase was primarily due to an increase in annual production, price increases and significant improvements in production yields, throughput gains, and manufacturing cost reductions reflecting the benefits of capital investments. These factors more than offset the impact of higher silicon costs in fiscal 2006 compared with fiscal 2005.

We are currently producing solar cells and modules using refined metallurgical silicon, and in the third quarter of fiscal 2007, produced approximately 7% of our solar modules using refined metallurgical silicon. Based on contractual commitments for the supply of refined metallurgical silicon that we have entered into or expect to enter into, we believe that in excess of two thirds of our total silicon requirement during fiscal 2008 will be met with refined metallurgical silicon.

Cost of revenue. For the nine months ended December 31, 2006, cost of revenue from Photowatt International was $71.5 million, representing 72% of revenue, compared to $65.1 million, or 75% of revenue, in the nine months ended December 31, 2005. Silicon pricing increases increased cost of revenues by approximately $4.0 million in the nine months ended December 31, 2006, compared to the nine months ended December 31, 2005. This was partially offset by a reduction in the number of grams used per watt manufactured, resulting from improved production processes. During the three months ended December 31, 2006, we produced approximately 4,900 modules using refined metallurgical silicon, which represented 7% of third quarter module production. To date, over 8,200 modules have been manufactured using refined metallurgical silicon. In the short term, it is expected that the increased production of metallurgical silicon modules will increase cost of revenue as a percentage of revenue, due to the higher costs per watt associated with this type of product.

Our investing activities for the nine months ended December 31, 2006 of $31.6 million were comprised of acquisitions of property, plant and equipment, primarily related to the current Photowatt International capacity expansion, of $27.8 million. See “— Capital expenditures” below. Deposits on inventory commitments totaled $3.9 million.

We expect to generate positive cash flow from operations once the first phase of our Photowatt International capacity expansion program comes fully on stream in fiscal 2008. (als ab April 2007)

In May 2006, we announced the first phase of our Photowatt International capacity expansion plan, which includes the expansion of our ingot, wafer, cell and module annual integrated manufacturing capacity to 60 MW by March 2007, at an expected cost of €26.5 million, of which at December 31, 2006, we had capitalized €19.2 million.

In September 2006, we entered into an agreement with the French Atomic Energy Commission and two other partners for the Photosil project whose primary objective is to develop a commercial process for the production of solar grade silicon derived from metallurgical silicon with a capacity of 200 tonnes per year. Pursuant to the agreement, our role in the Photosil project is to contribute certain expertise and non-financial resources in order to improve and enhance the silicon material developed during the Photosil development phase. Under the contract, we are to be supplied, at predetermined prices, with at least 80% of the volume of any solar grade silicon or ingots produced by the project through to April 20, 2008. After April 20, 2008, the output will be supplied to a future joint venture in which we are currently considering participating, and we will have no further entitlement to the project’s output. We expect initial shipments from the project to commence in April 2007, however given that the Photosil plant is currently under construction and production has not yet begun, there is a risk that these silicon shipments may be delayed or that none are made prior to April 20, 2008.

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Sonstige Informationen:

Aus dem Prospekt:

Competitive strengths. We believe that Photowatt International has the following competitive strengths:

• Integrated manufacturing capabilities. We participate in each of the ingot, wafer, cell and module stages of the solar module production process. We believe that being an integrated manufacturer gives us several advantages relative to many of our competitors, including:

— the ability to capture a greater portion of the profits available by participating across a significant portion of the solar value chain;

— reduced dependence on third-party suppliers for ingots, wafers and cells;

— enhanced research and development capabilities to increase cell efficiency levels;

— the ability to process a wide variety of silicon feedstock; and

— improved process development capabilities by allowing us to continually evaluate the impact of changes throughout the production process.

• Proprietary silicon processing technologies. Polysilicon, a specially processed form of silicon, is the primary raw material used to make crystalline solar cells and currently there is not enough available to meet industry demand. The supply shortage has led to sharply higher prices for polysilicon and has adversely impacted many solar cell manufacturers’ sales growth and profitability. While all forms of silicon are in short supply, we have developed processes and technologies to make solar cells from lower grades of silicon that we believe we can acquire more easily than polysilicon, including:

— Processing of refined metallurgical silicon. We are currently producing solar cells and modules using refined metallurgical silicon, and in the third quarter of fiscal 2007 produced approximately 7% of our solar modules using refined metallurgical silicon. While all forms of silicon are in short supply, we believe we can acquire refined metallurgical silicon more easily than polysilicon. Currently, solar cells that we make using refined metallurgical silicon have lower efficiencies than solar cells we make using polysilicon and use more silicon on a grams per watt basis. However, we believe the capability to make solar cells from refined metallurgical silicon will allow us to meet customer demand and mitigate the effects on our business of the current polysilicon shortage. Based on contractual commitments for the supply of refined metallurgical silicon that we have entered into or expect to enter into, we believe that in excess of two thirds of our total silicon requirement during fiscal 2008 will be met with refined metallurgical silicon. We are also currently evaluating a further refined type of metallurgical silicon that we believe has the potential to yield solar cells that have efficiencies consistent with what we currently obtain using polysilicon. We refer to this material as enhanced metallurgical silicon.

— Processing of polysilicon powder and fines. Polysilicon powder and fines are by-products of the polysilicon production process that many manufacturers have limited use for due to their high levels of impurities. Spheral Solar has developed a proprietary process called optical fused powder technology to convert polysilicon powder and fines into polysilicon clusters that can be used, together with conventional polysilicon, by Photowatt International to make solar cells. We purchase dry polysilicon powder and fines from polysilicon manufacturers at significantly lower prices than we purchase polysilicon on the spot market. Purchasing and converting polysilicon powder and fines is less costly for us than purchasing polysilicon in the current market environment, and using polysilicon powder and fines in combination with conventional polysilicon does not decrease the efficiency of our cells. We have begun selling solar cells that include silicon derived from polysilicon clusters made using this optical fused powder technology, although we do not expect that polysilicon clusters produced by us from powder and fines will represent a material source of silicon feedstock for fiscal 2008 unless we secure a long-term supply of powder and fines.

• Advanced wafer sawing capabilities. Wafers used in solar cells are cut from polysilicon bricks using specialized wire saws. In general, thinner wafers result in lower production costs because more wafers can be produced from each brick. However, very thin wafers are difficult to process because they are more brittle, and substantial technical expertise is required to develop processes that ensure acceptable yields. Wire thickness is also important because it determines how much silicon is lost during the cutting process. Photowatt International was a pioneer of the wafer sawing process used by many wafer manufacturers today and was one of the first companies to develop saws using wire less than 200 microns thick. Today, Photowatt International produces wafers with thicknesses ranging from 180 to 220 microns using a wire 160 microns thick. Photowatt International used approximately 10 grams of polysilicon per watt of power in our solar cells in 2005, which compares to an average of approximately 12 grams for the industry in 2005 as reported by Solarbuzz. Our current usage is approximately 9 grams per watt, which we believe remains below the current industry average.

• Established market positions and relationships with key distributors and installers. We have successfully sold solar products in Europe for over 20 years. We enjoy established market positions in several Western European countries that have well developed and growing solar markets, including Germany, which is currently the world’s largest market for solar power. We are also developing a presence in emerging growth markets for solar power in Europe, including Spain, Italy and Greece, as well as in the United States and Canada. We believe we have well-established relationships with key distributors and installers and that we are differentiated from our competitors by our timely delivery as a result of our vertical integration capabilities, our technical expertise and our reputation for quality solar modules with competitive price and efficiency levels.

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Aus dem Geschäftbericht für Fiscal 2007:

The funding will support key elements of the solar growth plan including:

- Acquisition of equipment (estimated cost $20 million) to increase Photowatt France's
annual cell capacity by approximately 20 megawatts to approximately 80 megawatts;
- Construction of a new building and certain infrastructure (estimated cost $30 million) required
to house the aforementioned cell capacity increase and to provide for Photowatt France's
future expansion up to approximately 135 megawatts of annual capacity;

In March, on schedule, ATS successfully completed the previously announced expansion at Photowatt France to bring annual ingot, wafer and cell capacity to 60 megawatts. A search is also underway to recruit a CEO for its solar business who is expected to be based in France.

Photowatt Outlook
Into the first quarter of fiscal 2008 Photowatt continued to experience the lower sales volumes and average selling prices experienced in the fourth quarter; however, sales volumes began to increase in May. First quarter fiscal 2008 operating performance is expected to be impacted by manufacturing and development costs related to the increased use of refined metallurgical silicon and commissioning of new furnace capacity that was added late in fiscal 2007.

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Handel ab heute ex Bezugsrecht.

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http://www.photowatt.com/

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Photowatt Technologies (PHWT)

Business: A manufacturer of solar cells and modules using lower grade feedstock.
Industry: Energy-Alternatives
Employees: 711
Founded 1979

Financial Data ($ in millions)
Market Cap $440.3
Revenues $122
Net Income ($4)
*Revenues and Net Income is for last twelve months ending 3/31/06

IPO Profile
Expected Date: Postponed
IPO File Date: 9/1/06
Price Range: $15.00 - $17.00
Shares Offered: 10.9 mm

[Kaufangebot]

Die Automatisierungssparte hat einen neuen Auftrag hereingeholt:

http://www.manufacturingtalk.com/news/ats/ats156.html

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Antwort auf Beitrag Nr.: 30.855.777 von Kaufangebot am 26.07.07 10:51:10

Tech millions unlikely to be repaid
Ten area firms pay off just 15% of federal loans

August 04, 2007
MICHAEL HAMMOND
RECORD STAFF

WATERLOO REGION

The demise of Spheral Solar Power has raised new questions about the accountability of a controversial technology loans program.

Spheral Solar Power and a related fund received $29.5 million from the federal government's Technology Partnerships Canada in 2002.

That money will likely not be repaid since Spheral is being shut down.

Spheral's parent company, ATS Automation Tooling Systems, was one of 10 Waterloo Region and Wellington County companies that received a total of $124.2 million in interest-free loans from the much-maligned program.

Only $18.7 million, or 15 per cent, has been repaid, The Record has learned from documents obtained through an access-to-information request. Much of the rest of the money owed depends on whether these companies generate further revenues from the projects that received loans.

Technology Partnerships Canada was introduced by the Jean Chretien-led Liberal government in 1996.

Derided by critics as corporate welfare, the program was designed to float companies interest-free loans for groundbreaking technology and innovation projects. Under the terms of the program, a company could begin to repay its loan when its project began to generate revenue.

Of the local recipients, Research In Motion, Raytheon Canada and Teleflex GFI Control Systems have made the largest payments on their loans, records show.

The region's repayment rate is slightly better than the national rate. Of the $3 billion in loans handed out between 1996 and 2006 to more than 215 companies across Canada, less than 10 per cent of the money has been repaid. The Conservative government shut down the program in 2006.

RIM has repaid $14.6 million from the $39.6 million it received. Raytheon has repaid $2.2 million of its loan, which totalled close to $13 million. Teleflex has repaid $1 million of its $10.8 million loan.

Besides these companies, Dalsa Corp. received $2.7 million, Intelligent Mechatronic Systems received nearly $3 million, Linamar Corp. of Guelph received nearly $9 million and Sandvine Corp. received $9.5 million. The records obtained by the Record show no money has been repaid yet.

Com Dev International has repaid $319,550 of its $2.4 million loan while AMI Semiconductor has repaid $476,337 of its $4.6 million.

University of Waterloo Economics professor Larry Smith said it's not unreasonable for the federal government to support cutting-edge research, but he worries that the apparent lack of accountability is leading to abuse.

"I'm quite happy for the public occasionally to share risks for particularly risky (research and development), but then if they're sharing the risk, they should be sharing the reward," he said. "It's outrageous if private business is trying to wiggle out of that side of the deal."

The government's Technology Partnerships Canada website explains that "the majority of TPC projects are still in the R&D phase and significant repayments are not expected for a number of years."

That type of language raises serious questions in Smith's mind. By claiming its research project is still in the preliminary stages, a company can delay making payments to the program.

"If there are no criteria for whether (the research) has or has not moved forward, then there's a natural tendency for them to appear to move slowly," Smith said. "There should be an explicit set of measurement criteria. I'm always uneasy over strategic policies with no measurement tools attached to them."

A 2006 review of the program by Raymond Chabot Grant Thornton Consulting included an audit of 46 companies that received funding. Of that total, 16 did not appear to comply with the program's rules. Industry Canada determines which companies are defaulting on their loans on a case-by-case basis.

In the case of ATS's Spheral project, the company is not required to repay its loan if its project does not generate revenues.

Industry Canada spokesperson Annie Trepanier said the government is talking to ATS about its obligations.

"Negotiations with the company are ongoing regarding the project issues," she said. "The contribution agreement is still in effect, which means ATS is still expected to repay the money."

ATS vice-president and treasurer Carl Galloway said the program is set up so that the loans are repayable only if the project is successful.

Galloway said the company ended up pouring far more of its own money into the Spheral program than it had expected when it signed a deal to receive the funding.

Originally, the government's loan was meant to supplement ATS's $67 million investment. The company ended up putting more than $100 million into the project by some estimates.

The government program's website recently published a list of all companies who received funding and how much they have paid back. The site does not list a number of technology companies that received millions of dollars in loans before going bankrupt.

The website's repayment list was one of the changes brought in by Industry Minister Maxime Bernier to bring more accountability to the program.

However, the repayment information listed on the site is voluntary, since companies have the option to withhold their repayment plans under federal privacy laws.

John Williamson, federal director of the Canadian Taxpayers Federation, said he doesn't buy the justification that the program will eventually recoup its money, as suggested on the program's website.

"The TPC story has changed after every failure," he said. "The program's official initially said that for every dollar spent, $1.74 would be returned to the taxpayer. The fact is, the government believed TPC would recoup its money faster than it has to date."

Williamson is not confident that taxpayers will see much of their $3 billion recouped. It's obvious, he said, that many of the loan contracts contain large loopholes that allow companies to delay making repayments.

"Each recipient had a separate agreement and more often than not, you could drive a truck through the conditions for repayment," Williamson said. "Companies became experts at weaseling out of their repayment obligations."

Williamson said the TPC program is nothing short of "corporate welfare." He said the only way to stimulate technology is to lower corporate taxes and let companies "get on with their own business."

"Bureaucrats are not experienced at picking winners in the market and should be in that business at all," he said.

Of the $3 billion in funds awarded, it is unclear how much money has actually been loaned. Companies are given money as their projects proceed, rather than as a one-time lump sum.

In ATS's case, Spheral Solar received nearly $29.5 million to help commercialize a new form of silicon-based thin-film solar power cells.

The company's founder Klaus Woerner predicted in 2002 that the solar division would one day rival ATS's main automation business as the company's largest revenue stream.

ATS planned to employ as many as 837 people at its production facility in Cambridge and produce 20 megawatts worth of solar products a year. However, the division ran into trouble as it tried to transform the promising technology into a viable commercial product.

In June, the company's president and chief executive officer Ron Jutras said ATS would close the Spheral division once it finished its remaining contracts.

To replace TPC, the Conservative government launched the $900-million Strategic Aerospace and Defence Initiative, which is expected to last five years. The government insisted that its program has much tougher standards that require companies to repay their loans when a project is finished, rather than when it starts making money.

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[Kaufangebot]

1. Zwei Heuschrecken haben auch den Wert der zwei Kernsparten von ATS nämlich Automatisierungstechnik und Solartechnik (Photowatt) erkannt.

2. Diese Heuschrecken wollen das Management auswechseln.

3. Kurs steigt.

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Management ausgewechselt.


Dissident hedge funds take ATS reins
LORI MCLEOD

September 14, 2007

Less than a week after a fight for control of the company officially began, the writing was on the wall for ATS Automation Tooling Systems Inc. By Monday, investors had overwhelmingly thrown their support behind the dissident hedge funds calling for the resignation of ATS's board and the replacement of its chief executive officer, Ron Jutras.

The company wasn't quite ready to concede defeat, announcing a new CEO for its Photowatt Technologies Inc. solar panel division and a big contract in South Korea during the week. "We haven't given up yet," a spokesman for ATS said on Tuesday.

Then came Wednesday, the day before the matter was to go to a vote at the company's annual general meeting. Realizing from early indications that the battle was over, the company's seven directors, along with Mr. Jutras and chief financial officer Gerry Beard, announced their resignations. That eliminated the need for the vote and effectively put the company under the control of the investment funds that launched the proxy battle on Sept. 4.

At least one analyst thinks it's likely to be a positive change for investors, who will see highly motivated hedge funds Goodwood Inc. of Toronto and Mason Capital Management LLC of New York try to shore up the company's fortunes.

"The dissident shareholders' commitment to enhancing shareholder value and doing so promptly gives us hope that the long-awaited turnaround at ATS will take place," said Frederic Bastien, an analyst at Raymond James Ltd.

Goodwood and Mason together own 21.25 per cent of ATS, which makes automated manufacturing systems in addition to solar panels. They've already pushed management to spin off Photowatt to shareholders, and backstopped a rights offering that will put $110-million into the division's improvement. They've also pressed for the sale of a unit that makes automation systems for the troubled auto sector.

Now they're in the driver's seat, and investors are wondering how much more value is left to wring out of the Cambridge, Ont.-based company. Simply carrying out the current strategy could be the key to success, said Robert Tattersall, senior portfolio manager at Howson Tattersall Investment Counsel, which has an investment in ATS.

"Maybe all they really have to do is execute what the incumbent management team was doing belatedly and somewhat ineptly," Mr. Tattersall said.

Mr. Tattersall's firm owned one million shares of ATS before Aug. 7, the date of record for shareholders to vote for or against the hedge funds' directors. He bought significantly more than that in the past month based on ATS's merits as a value investment.

As a fairly recent investor in ATS, he doesn't have the same "baggage" as some other shareholders, he added.

Many of those long-term investors have seen the value of their shares significantly eroded by a series of setbacks, some general and some company-specific. A $40 stock in 2000, ATS's fortunes have faltered for reasons that include the high dollar and weakness in the auto sector - one of its main customers.

Its solar panel business has also disappointed owing to the failed initial public offering on March 27 of Photowatt. A startup venture, Spheral Solar Power, was collapsed this year because it burned too much cash.

The stock bottomed out at less than $6 a share last month and, shortly after that, Goodwood and Mason made their move.

There are no plans to cut jobs or turn the company around for a quick sale, said ATS's new interim CEO, John Bell. A Cambridge, Ont., native, Mr. Bell is an entrepreneur who ran his own automation company and was a close friend of ATS founder Klaus Woerner, who died of cancer in 2005.

"I celebrated him as a great Canadian entrepreneur, and I want to carry on his vision. This is not a flip by any means," said Mr. Bell, noting that the search for a permanent CEO has already started.

Mr. Jutras and ATS's previous board members were unavailable for comment. Under a termination agreement made in October, Mr. Jutras will collect a severance payment of at least $1.65-million, or three years' salary, plus 24 months of benefits.

ATS (ATA)

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Antwort auf Beitrag Nr.: 31.571.704 von Kaufangebot am 14.09.07 12:38:30

EDF Energies Nouvelles places 3-year order to buy solar modules from Photowatt

TSX: ATA

CAMBRIDGE, ON, Oct. 15 /CNW/ - Photowatt International, the solar
products manufacturing business of ATS Automation Tooling Systems Inc., today
announced it has signed a three-year agreement to supply EDF Energies
Nouvelles - a world-class player in the green electricity generation market
and an affiliate of Electricité de France - with refined metallurgical silicon
solar modules.
The agreement stipulates that Photowatt will provide EDF Energies
Nouvelles with 10 megawatts (MWs) of refined metallurgical silicon modules per
annum from 2008 through to December 31, 2010, for a total of 30 MWs. In
addition, EDF Energies Nouvelles has the option of ordering another 7.5 MW of
refined metallurgical silicon products in 2008 and another 15 MWs per year in
2009 and 2010.
"This is the first multi-year order that Photowatt has secured for its
refined metallurgical silicon products," said John K. Bell, ATS Chief
Executive Officer. "In this regard, it is a breakthrough and provides
Photowatt with a high quality customer for a substantial portion of its annual
output of metallurgical silicon modules. There is a high degree of trust
between the parties and a commitment to work together to enjoy the benefits of
power efficiency gains we can achieve."

About EDF Energies Nouvelles

EDF Energies Nouvelles, a 50%-owned subsidiary of the EDF group
(Electricité de France), is a world-class player in the green energy
generation market and renewable energies with gross installed capacity of
1,188 MW worldwide at June 30, 2007 (including net capacity of 868 MW). With a
presence in 9 European countries and in the United States, EDF Energies
Nouvelles operates in four renewable energy segments (solar, wind, biomass and
hydro). Since November 2006, EDF Energies Nouvelles has been listed in
Compartment A of the Eurolist by Euronext Paris (code: EEN, ISIN code:
FR0010400143). www.edf-energies-nouvelles.com.

About Photowatt

Photowatt is a 60 MW integrated designer, manufacturer and marketer of
solar modules and installation kits used by customers throughout Europe and
the United States. A pioneer in the photovoltaic industry, Photowatt has been
developing and selling its well-recognized products since 1979. Its integrated
ingot, wafer, cell and module production capabilities, silicon processing
technologies, advanced wafer sawing techniques, established market positions,
relationships with key distributors and installers and value-added design
services, provide it with distinct competitive advantages in the growing
global solar industry. Based near Lyon France, Photowatt employs approximately
700 people and its PW 1650 solar modules were recently ranked first place by
Photon International in annual energy generated per watt peak installed.
(www.photowatt.com).

About ATS

ATS Automation Tooling Systems Inc. provides innovative, custom designed,
built and installed manufacturing solutions to many of the world's most
successful companies. Founded in 1978, ATS uses its industry-leading knowledge
and global capabilities to serve the sophisticated automation systems' needs
of multinational customers in industries such as healthcare,
computer/electronics, automotive and consumer products. It also leverages its
many years of repetitive manufacturing experience and skills to fulfill the
specialized repetitive equipment manufacturing requirements of customers.
Through its Photowatt solar business, ATS participates in the growing solar
energy industry and through its precision components business it produces, in
high volume, precision components and subassemblies. ATS employs approximately
3,500 people at 24 manufacturing facilities in Canada, the United States,
Europe, southeast Asia and China. The Company's shares are traded on the
Toronto Stock Exchange under the symbol ATA. Visit the Company's website at
www.atsautomation.com.

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A bright light
FABRICE TAYLOR

From Wednesday's Globe and Mail

Read Bio | Latest Columns
October 17, 2007 at 6:21 AM EDT

Finally a ray of sunshine for ATS Automation and its pasty shareholders. The company's Photowatt division just signed a big deal to supply EDF Energies Nouvelles with solar modules over the next three years.

This is good news for Photowatt, and for ATS. The company, which comprises three divisions including Photowatt, an automotive component manufacturer and the core Automated Systems Group, has had a tumultuous year that resulted in the ouster of management and the board by unhappy shareholders.

One of the beefs of the shareholders was the way management neglected Photowatt for years while it squandered a fortune on new but ultimately dead-end solar technology. The upshot of this neglect was that the bread-and-butter Photowatt unit got caught in a massive supply crunch for polysilicon, the lifeblood of solar panel manufacturing.

Earlier this year, Photowatt had to sign a contract to buy metallurgical silicon to build its solar gear. It's not as efficient at converting sunlight into energy as polysilicon and since customers pay for efficiency, that hurts. It also poses manufacturing challenges. Investors, understandably, worried that margins would suffer. Yesterday, they worried a little less because the solar modules Energie Nouvelles is buying will be made from met silicon.

Energies Nouvelles is a major player in the growing French solar power industry. It's 50-per-cent owned by Électricité de France, a major publicly traded utility. It also knows the business, and knows Photowatt. The two companies also have a joint venture. A cynic might say this is a case of Energie coming to Photowatt's rescue because of their Gallic ties. It's true that the French are proud and sometimes do things out of nationalistic zeal rather than economics, but Energie is publicly traded. This is a credible endorsement.Another reason to cheer is that the contract will account for a big piece of Photowatt's capacity. The deal calls for 10 megawatts a year for three years starting in 2008. The option is for 7.5 additional megawatts next year and 15 for each of the next two years of the deal.

So this agreement accounts for at least a sixth of Photowatt's capacity and as much as 38 per cent. That's a pretty good lead order to work with, especially as you're putting a new feedstock (met silicon) to the test. It's a lot easier to go sell the rest of your capacity with that kind of endorsement.

Photowatt isn't out of the woods yet but margins should improve as the company fine-tunes its met silicon manufacturing. And as polysilicon supply grows in two or three years, the company can revert to that feedstock and profitability should start to reflect the industry average. Photowatt's valuation should go up in lockstep.

We wrote somewhat positively about ATS in July, when the company issued rights to finance its turnaround. We argued that investors should exercise their rights to buy more stock for a little more than $7. The stock was at about $9 then and trades for less than $7 now.

So to exercise the rights doesn't look like great advice in hindsight. There's no shortage of bears either. The short position is a staggering 5.1 million shares at last report. There are 60 million shares outstanding.

But this story is going to require patience. Notwithstanding its problems, ATS reeks of value. The solar unit could have been a market leader but it was thwarted by bad calls. It's in recovery mode, but the solar industry has a gorgeous growth trajectory and in time, if the plan works, it will be evident in the valuation of Photowatt, which will most likely be spun off or sold.

The precision components group is, and always has been, a dog. The hope is to sell it but just taking it out behind the shed and shooting it would help.

The real hidden value is the automation group. The fixes there are obvious. ATS has a great reputation among manufacturers, especially Tier One auto parts makers. The U.S. dollar is weakening against almost all currencies, meaning manufacturing down there is going to pick up.

In fact, it already has. We understand that ATS's plants in the Southeast, with its fast-growing auto sector, are humming, unlike others in Cambridge, Ont. So shutter capacity, especially in Canada and Europe, and add it in the United States and, if possible, Asia. Follow the customer.

Once the company is a pure play automation story with a nimble CEO in place, use the stock to scoop up rivals in this fragmented and mostly privately held industry.

Using conservative valuation assumptions, you can easily see ATS's stock doubling over time if it all works out. The operative words are "if" and "over time," but if you've got patience and conviction in how much good fresh management can do, you've got an interesting opportunity here.

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Templeton Investment Manager sind ebenfalls von ATS bzw. Photowatt überzeugt:

As a turnaround play in the Canadian equity market, Moeschter is selecting ATS Automation Tooling Systems Inc. of Cambridge, Ont. ATS saw a change in its board and senior management in September after a proxy battle mounted by dissident shareholders.

"The company did lose its way over the last few years, putting too much emphasis on its solar cell business," he says. It was also "not quick enough to move out of its precision component manufacturing business which faces stiff competition from Asian manufacturers."

Moeschter says ATS needs to be "more focused on its core strength" -- the design and production of turnkey automated manufacturing and test systems. A plus, he says, is that ATS' balance sheet is in good shape.

Moeschter is looking for the new regime to restore the company's ROE to its historic double-digit level. The stock trades slightly above the company's book value per share, he notes.


Die ATS/Photowatt-Aktie gibt es fast zum Buchwert. Das dürfte für Solaraktien wohl einmalig sein.

Die Analyse des Templetonmannes teile ich allerdings nicht. ATS hat es in den letzten Jahren versäumt anständig in die traditionelle Photowattsolartechnik zu investieren. Unsummen flossen in die Entwicklung der einstmals vielversprechenden Spheral Solartechnologie. Dies hat das Management erkannt und investiert nun massiv in die Erweiterung der Kapazitäten. Damit könnte Photowatt wieder ein Big Player in dem Geschäft werden, wie sie es schon vor ein paar Jahren mal waren.

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Combing the world in search of bargains

Sonita Horvitch
Financial Post


Thursday, November 08, 2007

The ongoing debate on the outlook for global economic growth is helping to keep global stock markets volatile, says Norman Boersma, executive vice-president and global value manager at Templeton Investment Management.

Optimists argue that global growth will continue as China, India and other emerging economies expand, even if the U.S. economy slows. But others argue that the U.S. consumer is underpinning emerging-economy growth, and it will be hurt if U.S. consumer confidence weakens.

For some time, Boersma's global portfolios have been overweight two key defensive areas: telecom services and health care. "Our biggest percentage overweight relative to the benchmark is the telecom services sector."

The portfolio has also been emphasizing media stocks, including cable companies, which has resulted in an overweight position in the consumer discretionary sector. The portfolio is modestly overweight the energy sector and substantially underweight materials stocks.

"We took some money off the table primarily in metals and chemicals some time back," Boersma says.

Boersma has been underweight the now troubled financial services sector for a while. The European banks, says Boersma, have taken a beating for their higher-than-expected exposure to the troubled asset backed commercial paper market and U.S. subprime mortgages.

"We are carefully and slowly adding to our positions in major European banks. It is going to take time to sort these credit/structured products problems out."

At Templeton, Boersma manages about $10-billion in assets, mostly for global pension funds.

Colleague Peter Moeschter, senior vice-president, specializes in North America and is lead manager of the Templeton Canadian Stock Fund. Both Boersma and Moeschter are based in Toronto.

The Templeton group combs the world in search of for bargains, looking ahead five years and building a financial model of target companies to evaluate each company's ability to grow earnings and book value over that period. It then uses traditional valuation measures to assess the merits of each of its targets. This exercise generates a bargain list available to all managers within the group.

As a turnaround play in the Canadian equity market, Moeschter is selecting ATS Automation Tooling Systems Inc. of Cambridge, Ont. ATS saw a change in its board and senior management in September after a proxy battle mounted by dissident shareholders.

"The company did lose its way over the last few years, putting too much emphasis on its solar cell business," he says. It was also "not quick enough to move out of its precision component manufacturing business which faces stiff competition from Asian manufacturers."

Moeschter says ATS needs to be "more focused on its core strength" -- the design and production of turnkey automated manufacturing and test systems. A plus, he says, is that ATS' balance sheet is in good shape.

Moeschter is looking for the new regime to restore the company's ROE to its historic double-digit level. The stock trades slightly above the company's book value per share, he notes.

Of his sells, Moeschter substantially sold down his holding at took profits in Toronto-based energy services company ShawCor Ltd. This company has seen its global order back log growing, he says. But the stock, at almost five times book value per share "is ahead of the fundamentals."

Turning to Boersma's global porfolio, this manager notes that the U.S. telecom and media industries are experiencing tough competition with the blurring of the lines between traditional cable companies and phone companies. But European telecom services companies are less exposed to competition from cable companies and have "wisely" been investing some of their cash flow in high growth emerging markets.

Two names that have been in the portfolio for more than two years -- and which have put up a strong performance -- are "no longer cheap, but I am comfortable holding them in these volatile markets" are:

- Vodafone Group PLC, the British mobile telecommunications service provider. "It is more of a wireless play and has operations in the emerging economies - Eastern Europe, India and other parts of Asia," he says.

- Telefonica SA. Based in Spain, Telefonica provides a variety of telecommunications services, including fixed-line services to countries in Europe including Eastern Europe and Latin America.

While cautious on the global financial services sector, Boersma notes that there are special situations that offer promise.

An example is, he says, Aiful Corp., a Japanese consumer finance company that has been hit by regulatory changes, he says. It is a higher-risk lender and it was charging high rates of interests to its customers. Japanese regulators put a cap on the interest that can be charged by the consumer finance industry and the "stocks collapsed."

This provided an entry point, he says, as he considered that the companies had over provisioned for resultant losses from the new lower interest rate regime.

Boersma took profits in China Coal Energy Co. The stock, he says, had a tremendous run and is currently trading at a hefty 50 times 2008 estimates. "This is high for a materials company."

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http://english.grenoble-isere.com/uploads/Document/WEB_CHEMI…

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Loss widens as revenue dips
TheStar.com - Business - Loss widens as revenue dips

November 14, 2007
CAMBRIDGE–ATS Automation Tooling Systems Inc. reported a second-quarter loss yesterday of $18.8 million, or 28 cents per share, missing analyst expectations of a loss of two cents per share. The loss was also wider than last year's loss of $2.1 million, or four cents per share.

Four analysts surveyed by Thomson Financial estimated a loss of two cents per share for the period ended Sept. 30 and revenues of $181 million. Revenues were $163.3 million compared with $164.6 million. "Despite a significant increase in year-over-year order backlog entering the quarter, ASG (Automation Systems Group) revenue was lower in the second quarter compared to the prior year as many of these new projects did not yet move from design into manufacturing,'' ATS said.
--------------------------------------------------------------------------------
The Canadian Press

Wenn man die Schätzungen der Analysten derart massiv verfehlt, verwundert der Kursrückgang nicht.

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Der neue französische Chef von Photowatt spielt die französische Karte und lässt sich vom französischen Staat unterstützen. Als einziger relevanter französischer Solarplayer werden sie in Zukunft wahrscheinlich mehr Unterstützung erhalten. Die Franzleute wollen doch immer internationale Champions aufbauen.
Könnte mir auch vorstellen, dass sich Energie de France bzw. deren Erneuerbaren Energien Tochter mittelfristig an Photowatt beteiligt.

Zu einer Forschungskooperation mit reichlich Subventionen hats schon mal gereicht:

Eine grosse PV Allianz in Frankreich

Das ist nämlich, die Gelegenheit zum Besuch des Premierministers, François Fillon, am 9. November, dem Nationalen Institut für Solarenergie (INES), wurde die angekündigte Gründung eines Unternehmens namens "PV Allianz".

Zuständig für Bourgoin-Jallieu, in der Abteilung der Isère, in der Nähe der INES, umfasst die drei Partner: zwei gewerbliche Photowatt und EDEV ENR Parties, Tochtergesellschaft der EDF und ein wichtiger Akteur des französischen Forschung Für die Energien nicht Sendeanlagen Treibhausgasen, der CEA. Objectif de PV alliance, accélérer le processus d'innovation dans le domaine de la fabrication des cellules solaires photovoltaïques. Ziel von PV Allianz, beschleunigte den Prozess der Innovation im Bereich der Herstellung von Solarzellen Photovoltaikanlagen.

Fin 2009, le LabFab, une unité pilote de fabrication de cellules solaires photovoltaïques prototypes, sera opérationnelle. Ende 2009, das LabFab, ein Pilotprojekt zur Herstellung von Solarzellen Photovoltaikanlagen Prototypen, in Betrieb. Celui-ci permettra de valider, à une échelle industrielle, les différentes innovations issues des laboratoires de recherche, notamment celles de l'INES. Damit kann bestätigen, in industriellem Maßstab, die verschiedenen Innovationen aus den Forschungslabors, die insbesondere von der INES. Aussi la capacité installée du LabFab sera-t-elle d'environ 25 MW, soit le minimum requis pour s'assurer qu'une innovation est compatible avec les contraintes industrielles. Auch die installierte Kapazität des LabFab wird von etwa 25 MW, was die Mindestanforderung, um sicherzustellen, dass eine Innovation ist kompatibel mit den Zwängen der Industrie.

Les développements de PV alliance s'articuleront autour de trois axes technologiques. Die Entwicklung von PV Allianz stehen auf drei technologischen. Le premier vise à mettre au point des cellules solaires élaborées avec du silicium issu du procédé PHOTOSIL . Das erste richtet sich auf die Entwicklung von Solarzellen entwickelt mit Silikon aus dem Verfahren PHOTOSIL. La difficulté de mise en oeuvre de cette technologie réside dans la présence de certaines impuretés résiduelles de ce silicium, d'où une altération du rendement des cellules. Die Schwierigkeiten bei der Umsetzung dieser Technologie besteht darin, die Präsenz von bestimmten Verunreinigungen Restfunktionen des Silizium, aus denen eine Veränderung der Effizienz der Zellen. Pour PV alliance, il s'agira donc de trouver le meilleur compromis performance/coût, l'objectif de rendement de ce type de cellules devant être voisin de 15%. Für PV Allianz, ist dies nach dem besten Kompromiss Leistung / Kosten, das Ziel der Wirkungsgrad solcher Zellen soll Nachbar von 15%. Deuxième axe technologique dans lequel PV alliance souhaite s'engager, l'utilisation d'outils issus des microtechnologies afin de développer des cellules photovoltaïques à haut rendement , c'est-à-dire 20%. Zweiter Schwerpunkt Technik, in dem PV Allianz wünscht sich, die Verwendung von Instrumenten aus der Mikro- zur Entwicklung von Solarzellen mit hohem Wirkungsgrad, dh 20%. Enfin, ce nouveau consortium qu'est PV alliance souhaite investir sur les nanotechnologies et engager un partenariat privilégié avec le pôle Minatec dans le but de mettre en oeuvre des concepts révolutionnaires de cellules photovoltaïques et de dépasser 25% de rendement. Schließlich ist das neue Konsortium PV Allianz will in die Nanotechnologie investieren, und verpflichtet, eine privilegierte Partnerschaft mit der Minatec-Zentrums, mit dem Ziel, die Umsetzung der Konzepte revolutionären Solarzellen und über 25% Wirkungsgrad.

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http://www.atsautomation.com/profile/investors/pdf/Q2-08%20P…

http://www.atsautomation.com/profile/investors/pdf/Q2-08%20M…

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Seit ein paar Wochen gehts steil bergauf. Ist ja auch ca. 1,5 Jahre fast nur gefallen.

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Peter Moeschter
Franklin Templeton Investments Corp.


A deep-value investor with a contrarian bent

by Michael Ryval | 25 Jan 08

"We ask ourselves, 'What will this company look like in three to five years? How much upside is there?'" By looking past the current issues that may be plaguing a company, he anticipates higher values as conditions start to improve.

One representative holding is ATS Automation Tooling Systems Inc. (ATA/TSX). A producer of automated manufacturing and test systems and solar panels, its stock has been under pressure for almost two years mainly because of its high cost structure. Last summer, it endured a proxy battle that led to new senior management.

Moeschter added to the position as it continued to fall. "It has underperforming assets, but the company has the potential to do much better," he says. "When you normalize its earnings, the stock should be worth much more."

http://www.morningstar.ca/globalhome/Industry/ManagerMonitor…

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weiter so.

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ATS reports third quarter results and performance improvement initiatives

http://www.newswire.ca/en/releases/archive/February2008/13/c…

Photowatt Results

- Total megawatts (MWs) sold at Photowatt France increased to 11.6 MWs
from 8.2 MWs in the third quarter of fiscal 2007 - with MgSi products
accounting for 55% of revenue.
- MgSi module prices increased 4% from the second quarter of fiscal
2008 and were sold at a 0% to 10% discount to polysilicon modules.
- Average cell efficiencies improved in the third quarter to just over
13% for MgSi cells and just over 15% for polysilicon cells.
>>

Wie es aussicht, ist absehbar, dass sie in den nächsten Quartalen mit ihren MgSi-Zellen in die Gewinnzone fahren.

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The
direct cost per watt of manufacturing MgSi modules has decreased approximately
20% since the first quarter of fiscal 2008.

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Quoted Market Value 462,482,452
Shareholders’ equity 415,919,000

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ATS Automation Tooling Systems upgraded to "buy"
6:07a.m. - GMP Securities
NEW YORK, February 14 (newratings.com) - Analysts at GMP Securities upgrade ATS Automation Tooling Systems Inc (ATO) from "hold" to "buy," while reducing their estimates for the company. The target price has been raised from $6.85 to $7.50.

In a research note published this morning, the analysts mention that the company has reported its 3Q consolidated revenues ahead and EPS short of the estimates. The operating performance of Automation Tooling Systems’ ASG business was weaker than expected, while that of Photowatt was better, the analysts say. Going forward, the company is expected to incur $30 million in costs related to its turnaround initiatives, which are expected to result in an annualized EBIT improvement of a similar amount, GMP Securities adds. The EPS estimates for FY08 and FY09 have been reduced from -$0.39 to -$0.46 and from $0.32 to $0.27, respectively.

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Bin gestern ausgestiegen.

Die nächsten 6 Monate sehe ich keine grossen Kurssteigerungen. Das operative Geschäftsergebnis verbessert sich zwar, allerdings nur langsam, so dass der Wert in der 2. Jahreshälfte wieder interessant werden könnte.

Ich werde den Wert und vor allem Photowatt jedoch genau beobachten. Sollte Photowatt den Aufbau einer Dünnschichtfabrik bekanntgeben, würde ich kurzfristig wieder einsteigen.

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ATS reports first quarter fiscal 2009 results
TSX: ATA

CAMBRIDGE, ON, Aug. 13 /CNW/ - ATS Automation Tooling Systems Inc. today
reported its financial results for the three months ended June 30, 2008 -
including substantial improvement in all key performance measures.

<<
Highlights

- Consolidated revenue increased 36% to $212.1 million from
$155.4 million a year ago;
- Consolidated earnings from operations increased to $16.3 million
compared to a loss of $6.8 million a year ago;
- Earnings were $0.17 per share (basic and diluted) compared to a loss
of $0.15 per share a year ago.
>>


Photowatt Technologies Results

- Revenue increased 45% to $69.3 million from $47.7 million a year ago;
- Photowatt France EBITDA was $9.3 million compared to $2.7 million a
year ago;
- Photowatt Technologies operating earnings were $10.5 million compared
to a loss of $2.4 million a year ago;
- Total megawatts (MWs) sold at Photowatt France increased 29% to
13.8 MWs from 10.7 MWs in the first quarter of fiscal 2008 - with
UMGSi products accounting for 54% of revenue;
- Average cell efficiency for UMGSi cells improved to approximately
13.8% from 12.9% a year ago, while average cell efficiency for
polysilicon products was 15.6% compared to 14.8% a year ago.