Energy Conversion Devices shares rise on upbeat analyst note

The Rochester Hills, Mich.-based company, which issues its fiscal third-quarter report on Thursday, has been increasing both the volume and efficiency of the cells that comprise its package of solar laminates. Since February 2007, its output has roughly tripled.

Cowen & Co. analyst Rob Stone, in an analyst note, said the company now produces 144-watt laminates as opposed to its earlier 136-watt laminates -and it does so without increased manufacturing costs.

Since the average selling price of the laminates is based on watts, the improved efficiency increases both the company's revenue and its gross margin, said Stone, who has an "Outperform" rating on the shares.

The analyst also said he concurs with the company's projection that it would become profitable in the quarter ending in June.

Besides solar laminates, Energy Conversion Devices also makes nickel hydride batteries and develops phase-change memory technology.

Shares rose $2.49, or 7.5 percent, to $35.86 in afternoon trading.