UPDATE 2-ECD sales jump, signals improving visibility

* Q4 shr loss $0.40 vs est shr loss of $0.60

* Revenue rises 68 pct, beats estimates

* Sees Q1 consolidated rev below Wall Street view

* Shares up 3 pct before the bell (Recasts; adds details, background, updates share movement)

Aug 31 (Reuters) - Energy Conversion Devices Inc ENER.O reported a narrower-than-expected quarterly loss on better demand for its solar products, and signalled improving visibility.

"We expect to grow our business substantially in fiscal 2011," Chief Executive Mark Morelli said in a statement.

He, however, warned of "uneven" quarterly results given project timing uncertainties, and the company's first-quarter revenue forecast came in below Wall Street view. [ID:nWNAB2132]

Morelli said while the company expects to nearly double shipments year over year in the first quarter, it would not recognize the revenue for much of these shipments until later in the fiscal year.

However, while the outlook was below estimates, this marks a change from the past few quarters when ECD refrained from giving specific outlook, citing poor visibility.

"As a greater proportion of our business is generated from projects, we will see continued revenue growth, enhanced system-derived margin, and increased visibility moving forward," Morelli said.

BRIGHT RESULTS

For the latest fourth quarter ended June 30, the company reported a net loss of $20.4 million, or 48 cents a share, compared with a loss of $17.6 million, or 42 cents a share, last year.

Excluding items, ECD posted a loss of 40 cents per share, much narrower than estimates of a loss of 60 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 68 percent to $86.2 million, blowing past estimates of $72.34 million.

Rochester Hills, Michigan-based ECD makes building-integrated photovoltaics, or BIPVs, that are designed to be built buildings in the form of shingles or windows.

Tuesday's news comes after the company signalled improving market conditions in May, and said it was finally turning the corner following nearly a year in the red.

The company, which has been slashing production capacity to bring supply in line with demand, had said it would approach full production in fiscal 2011.

The production cuts were driven by a steep drop in demand and a glut of panels in the market. Over the past year, the company was also forced to axe jobs to rein in costs.

Amid these problems, shares of the company, which once traded above $80 apiece, tumbled to a lifetime low of $3.76 in July.

Shares of the company, valued at about $189 million, were up 12 cents at $4.10 in premarket trade. They closed at $3.98 Monday on Nasdaq. (Reporting by Adveith Nair and Thyagaraju Adinarayan in Bangalore; Editing by Aradhana Aravindan)