* Says First Solar will terminate relationship this year
* Says will make significant headcount reductions
* Recorded $39 million in sales from First Solar in 2012
* Shares down 22 pct aftermarket
Jan 22 Solar components maker STR Holdings Inc
will lose the business of its largest customer, First
Solar Inc, over the next few months, and the company
said it will seek strategic alternatives, sending its shares
down 22 percent after the bell.
The money-losing company hired UBS Investment Bank as its
financial adviser to help review strategic alternatives. STR
reported revenue of $23 million, its lowest in at least five
years, for the quarter ended Sept. 30.
Losing First Solar, which brought in about $39 million in
sales in 2012, will significantly hurt STR's results. Analysts
expect 2012 revenue of about $95 million according to Thomson
STR said it recently added three new customers in China.
"This new work won't make up for the loss of First Solar's
business in the short-term," Chief Executive Robert Yorgensen
said in a statement.
The clean technology sector has suffered some recent
high-profile flameouts with the bankruptcies of solar company
Solyndra and battery maker A123 Systems.
STR said it will cease manufacturing operations at its East
Windsor, Connecticut facility by the end of the first quarter,
resulting in significant restructuring charges in 2013.
It will also make significant headcount reductions
throughout the company.
Enfield, Connecticut-based STR's shares fell 22 percent to
$2.40 after the bell. They have fallen nearly 70 percent in the