Ascent Solar inks direct supply deal, shares rise

(Reuters) - Shares of Ascent Solar Technologies Inc (ASTI.O) rose as much as 12 percent, after the developer of thin-film solar modules said it signed a direct supply agreement with Gold Zero LLC.

Under the agreement, Ascent Solar will supply up to 30,700 premier module units to Gold Zero -- a unit of consumer company Provo Craft and Novelty -- through 2010.

Raymond James' analyst Pavel Molchanov said though the contract itself was small, less than 1 megawatt based on his estimates, it was the company's first commercial electronic integrated photovoltaic (EIPV) contract.

"While the direct financial impact of this initial contract is modest, we believe that Ascent stands to benefit from the increasing adoption of thin film for specialty PV applications, including EIPV," the analyst wrote in a note to clients.

Molchanov, who maintained a "market perform" rating on the company, said the EIPV arena was a key future end-market for Ascent and that this deal opened the door to larger deals in the future.

Ascent shares were up 11 percent at $7.11 Tuesday on Nasdaq, after having touched a high of $7.19. The stock has so far more than tripled from a March year-low. (Reporting by Adveith Nair in Bangalore; Editing by Anil D'Silva)