UPDATE 3-Energy Conversion swings to qrtly loss; shares drop

* Q4 shr loss $0.37 vs profit $0.24/shr last yr

* Q4 revenue down 38 pct

* Sees Q1 rev in line with Q4 levels

* Shares fall 6 pct to year-low (Adds analyst comments, conference call details, updates share movement)

By Adveith Nair

BANGALORE, Aug 27 (Reuters) - Energy Conversion Devices Inc ENER.O swung to a quarterly loss as demand continued to drop, sending shares of the solar company down 6 percent to their lowest levels in a year.

"Demand for solar products in our target markets weakened further from the third quarter into the fourth quarter as commercial construction declined, building owners deferred reroofing projects and project financing constraints continued," Chief Executive Mark Morelli said in a statement.

The company, which reported five consecutive profitable quarters prior to a loss in the fourth quarter, makes lightweight, flexible solar laminates for rooftops and buildings that convert sunlight into electricity.

"The results were not that unexpected given the industry conditions, and the fact that they had production furloughs earlier this year," Wedbush Morgan Securities analyst Christine Hersey said.

Like many in the solar industry, Rochester Hills, Michigan-based ECD is grappling with a dearth of financing and a global oversupply of solar panels that has sent prices on solar power products tumbling.

Earlier this year, ECD said it would slow expansion plans and cut production to bring supplies into line with weakened demand.

The company, which expects access to capital to be a constraint and average selling prices to remain under significant pressure, forecast fiscal 2010 revenue to be up 10 percent to 15 percent. It sees first-quarter revenue to be in line with fourth-quarter levels.

Based on its 2009 revenue of $316.3 million, the company's full-year revenue view came below analyst Hersey's estimate of $372 million but was way above the consensus estimate of $334 million for fiscal 2010.

The company's demand-creation initiatives for large utility projects and U.S. government stimulus spending will not drive a meaningful increase in revenue until the second half of the fiscal year, ECD said.

Production for the year is expected to come in at about 150 megawatt, with higher volumes in the second half.

On a conference call with analysts, the company said it expects prices to fall 10 percent in the near-term.

Hersey expects prices to fall by as much as 22 percent for the full year, and said visibility remained poor across the industry. "They guided for flat revenue for the first quarter, and said prices are probably down 10 percent in that quarter. Beyond that, they did not provide any guidance on margins or prices," the analyst said.

For the fourth quarter ended June 30, the company reported a loss of 37 cents a share, compared with earnings of 24 cents a share, last year. Results were hurt by charges totalling $13.6 million.[ID:WNAB4234]

Analysts, on average, were looking for a loss of 8 cents a share according to Reuters Estimates.

Shares of the company were trading down 5 percent at $11.90 Thursday on Nasdaq. The stock, which touched a year-low of $11.70 earlier in the session, is so far down more than 80 percent from its August 2008 year-high. (Editing by Anne Pallivathuckal and Anil D'Silva)