Top Losers: First Solar, Inc. (NASDAQ:FSLR), A123 Systems, Inc. (NASDAQ:AONE)

The biggest maker of solar panels in the U.S., First Solar, Inc.(NASDAQ:FSLR), has reported a drastic fall in its net income due to restructuring charges and a dip in revenue due to the sharp fall in prices.  The company has also lowered its outlook for the full year.

The net income was $87.9 million or a dollar a share, significantly lower than the $196.5 million or $2.25 a share earned last year in the same period.  Earnings excluding items like restructuring charges are $1.27 a share, topping analysts’ estimates of $1.04.  Revenue fell 17 percent to $839.1 million, compared to last year’s $1.01 billion.

For the full year, the company has revised its forecast because of some supply problems caused by the weather.  It now sees revenue between $3.5 billion and $3.8 billion higher than its earlier forecast range of $3.6 billion to $3.9 billion.  It expects earnings to be in the range of $4.40 and $4.70 a share; the prior estimate was between $4.20 and $4.70.

First Solar shares slumped 8.50 percent and were trading at $22.61.

US senators want Chinese bid for A123 reviewed

Two republican senators have asked U.S. Treasury Secretary Timothy Geithner to thoroughly review a Chinese company’s attempts to take over A123 Systems, Inc.(NASDAQ:AONE), the bankrupt battery manufacturer, citing protection of military technology funded by taxpayers.

China's Wanxiang Group is fighting it out with U.S. based Johnson Controls to acquire A123. Senators John Thune and Chuck Grassley want the Committee on Foreign Investment in the United States (CFIUS) to review the transaction to make sure that U.S. military and taxpayer interests are protected. A123 had earlier received a $249 million federal grant.

The senators fear that the Chinese company could access military contracts and grid storage technologies. "A123 has received millions of taxpayer dollars to develop technology and intellectual property that should not simply be shipped to China," said Thune in a statement.

Shares of AONE slumped 6% to $0.126.

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A123 Systems, Inc. (NASDAQ:AONE) to approach court for loan from Wanxiang

Electric car-battery maker A123 Systems, Inc.(NASDAQ:AONE), which is currently following bankruptcy proceedings, pans to approach the court seeking approval for a loan from China's Wanxiang Group Corp.

Johnson Controls, which has made a bid to acquire the automotive assets of the company, said that it would withdraw its prior loan commitment to A123.

A123 had filed for bankruptcy a couple of weeks back and Johnson Controls had offered it an interim loan as part of the restructuring of the company.

But subsequently A123 filed papers in court on Friday and said that it had reached an agreement with Wanxiang Group for a replacement loan.

In a statement released late on Friday, Johnson Controls said it is withdrawing the debtor-in-possession (DIP) loan to avoid delays to the bankruptcy process.

"Johnson Controls has chosen not to be the debtor-in-possession lender during A123's bankruptcy process to avoid potential delays," Johnson Controls said in the statement.

Both Johnson Controls and Wanxiang are fighting for control over the bankrupt auto parts firm.

A debtor-in-possession or DIP gives the lender more strategic leverage over the bankrupt company and gives it liberty to demand asset sales as well as set timelines and deadlines for the bankruptcy proceedings.

By withdrawing from the DIP loan, Johnson Controls is effectively ceding advantage to the Chinese company. However Johnson has said that it will maintain its $125 million bid for A123's automotive assets.

A123 declared bankruptcy amid a disappointing market for electric vehicles and after it had to recall battery packs made for Fisker Automotive, which made up 26 percent of A123's revenue in 2011.

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A123 Systems, Inc. (NASDAQ:AONE) Receives Court Approval Of ‘First Day’ Motions

A123 Systems, Inc.(NASDAQ:AONE) has announced that the US Bankruptcy Court for District of Delaware has approved its request for particular ‘first day’ order that aid in supporting its business.

A123 Systems is a developer and maker of advanced Nanophosphate lithium iron phosphate systems and batteries that are used for transportation, commercial applications and electric grid. A123 influences breakthrough technology, expert systems integration and high-quality manufacturing. The company’s proprietary Nanophosphate lithium ion phosphate technology is built on novel nanoscale materials that are developed at Massachusetts Institute of Technology.

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The court has approved A123’s request to use $15.5 million out of its $72.5 million DIP (Debtor-in-Possession) financing from Johnson Controls in order to support the operations of the company throughout the transaction process. A court hearing for final grant of the DIP has been slated for 30^th October, 2012. The company has also received grant to continue paying salaries, benefits, employee wages and other employee obligations.

As mentioned earlier, A123 had entered an asset purchase agreement with Johnson Controls. The latter expects to gain access to automotive business assets of A123. A123 also keeps on engaging in active discussions related to strategic substitutes for its commercial, grid and other operations. It has received a number of indications of interest for these businesses. To help the transaction process, A123 and all of its subsidiaries in the US have filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code. The subsidiaries of the company that are located outside the US were not included in the filings.

Additionally, including the terms of the updated DIP agreement of the company with Johnson Controls is expected to be filed soon. It is available on the website of A123. For accessing court documents and other information, one can view Logan and Company’s website.

Shares AONE slumped about 50% during the past week after bouncing back about 150% from its all time low of $0.05.

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Tech Slumps: Google Inc (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), NASDAQ:AONE, CLWR, AMD

The tech sector continued to slump in Friday’s session amid weak earnings from Microsoft Corporation(NASDAQ:MSFT), while Apple Inc.(NASDAQ:AAPL) and Google Inc(NASDAQ:GOOG) continued to slid. NASDAQ Composite(INDEXNASDAQ:.IXIC) slumped  -53.35 (-1.74%) to 3,019.52.

Google Inc(NASDAQ:GOOG) shares were showing relief rally in the opening session at least after a slump of 8% in yesterday’s session as the company’s early issued results due to a glitch, which had widely analysts’ estimate. However, the stock turned lower and now down another 2% to $682.15, off session high of $706.70.

In the third quarter, the search engine posted EPS of $9.03 and revenue of $ $11.33 billion, both missed analysts target by significantly with EPS fell short of $1.62 and revenue by $550 million. The key concern during the quarter was the company’s revenue excluding Motorola, saw a growth of below 19% for the first time after showing well above 20%’s growth rate in the past few quarters.

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Although, the volume of ads jumped by 33%, but the average price paid by web-search advertisers to Google per click put pressure on the company, which fell 15%.

They key concern remains that the increased use of mobile devices may put further pressure on the company’s earnings.

Apple Inc.(NASDAQ:AAPL) continued to be under pressure and fell 2.70% to $615.73 after plunging over 1.70% in yesterday’s session. After the lackluster earnings by various blue chip tech companies, investors are trading AAPL cautiously as yesterday analyst at BMO said that the company’s earnings forecast for the current quarter could be bit more conservative.

Moreover, the analyst reduced its iphone estimate by 4 million to 46 million, stating supply constraints. The supply shortage is not the new problem for the company as the demand for iPhone is much larger than supply.

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Yesterday’s fall was further sparked after Verizon (NYSE:VZ) commented that they saw supply crunch in the latest quarter. Following this, analyst at Jefferies & Co. reduced its projections r total iPhone 5 sales unit sales in the quarter to 5 million from 8 and 10 million.

However, the key question remain can the worl’d largest company by market value will be able to buck the trend and report higher than estimated earnings and forecast better quarter?

The stock has already lost 10% from its peak of $705.07 on heavy supply crunch for its iPhone 5.

A123 Systems, Inc.(NASDAQ:AONE) edged up another 495 after soaring 37% in yesterday’s session on reports it will appeal to a bankruptcy judge for the right to entertain better offers for its lithium-ion battery business and gains receives approval to use debtor financing from Johnson Controls (JCI) to keep operations running. Lost in part of the political mumbo-jumbo over the failure of the company is the bigger theme that automakers are starting to see better opportunities by focusing on the hybrid-electric market, rather than the all-electric, on a purely economic rationale.

Clearwire Corporation(NASDAQ:CLWR) plummets 10% after SoftBank CEO Masayoshi Son says he remains open to bidding on MetroPCS, a move that would further lower the odds of Sprint buying Clearwire in full near-term. Shares have already tumbled this week in response to other bad news (I, II) on this front, but remain up 45% since the first reports of a Sprint/SoftBank deal arrived.

Advanced Micro Devices, Inc.(NYSE:AMD) has a plan to reduce its work force by 15% or 1,800 jobs by the end of this year to trim its spending amid dwindling sales. It expects to record a restructuring expense in the fourth quarter of about $80 million.

Recently, the company had trimmed its earnings projections for the third quarter which ended last month, stating poor demand across all product lines largely to the challenging macroeconomic environment (which is quite beneath the control of the company).

Advanced Micro Devices, Inc.(NYSE:AMD) slumped 15.50% to $2.21.

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A123 Systems, Inc. (NASDAQ:AONE) Tumbles on Bankruptcy, Basic Energy (NYSE:BAS) Trims outlook

Shares of Basic Energy Services, Inc(NYSE:BAS) rose 18 cents, or 1.59 percent, to $11.48. Lowering the third quarter revenue forecast was the company with a weaker than expected September results.

The company received a subpoena from the Securities and Exchange Commission on Monday. In a regulatory filing the company said that SEC is investigating whether there is any violation of federal security laws while reporting its June operating data. The company plans to fully cooperate with the SEC inquiry.

Maintaining the guidance for the fourth quarter revenue to fall 3 to 5 percent, it changed its third quarter revenue outlook. It expects to drop 5 to 6 percent from second quarter and increase from its previous forecast drop of 3 percent.

Moreover the rig utilization rate even dropped because of fewer working days and inclusion of the Labor Day holiday.

Further there was a decline in drilling rig days for September because of delay at some of its rigs and majorly because it used one of its rig on internal project.

A123 Systems, Inc.(NASDAQ:AONE) on Tuesday filed for bankruptcy protection and sold its automotive assets following short of cash and weak sales of electric cars.

The news came a day after the company alerted of its miss in debt payments and that it could be head for restructuring under Chapter 11. The company is yet to post profit and has lost $83 million in second quarter. Just two months ago did the company announced of a $450 million lifeline from Wanxiang Group Corp which it now terms to be over.

Under chapter11 the company received a federal grant of $249 million which it is not required to repay but has to match it. Till date it has drawn about $129 million of the grant said spokesman Dan Borgasano.

Johnson Controls will get A123's automotive assets for $125 million, including lithium-ion battery technology, products and customer contacts. It will also take over the factories in Michigan, cathode ray factories in China and an equity interest in a Chinese battery company.

The business such as grid, commercial, government and other operations which were not purchased by Johnson Controls are under process to be sold said A123.

A123's stock once traded for more than $20 on the day of its initial public offering in 2009 fell to 6 cents in afternoon trading down 75%.

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