Rochester Hills-based Energy Conversion Devices Inc. (NASDAQ: ENER) reported Thursday that surging demand for its solar energy products has at last pushed the company to profitability.

ECD reported $7 million in net income in the fiscal third quarter ended March 31, or 17 cents a share, up from a loss of $6.9 million or 17 cents a share in the year-ago period. Revenue for the quarter was $70 million, up 155 percent from $27.4 million in the same quarter a year earlier, and up 24 percent from second quarter revenue of $56.4 million.

Solar product sales were $64.9 million, a 31 percent sequential increase and a 193 percent increase over the prior-year quarter. Gross margin on product sales in the solar business was 30.7 percent in the third quarter, compared with 19.2 percent in the second quarter. The gross margin improvement was driven by better factory utilization and yield, and favorable customer/product mix.

"I'm pleased to report that we've reached profitability, and we've done so through sustainable changes to our business," ECD president and CEO Mark Morelli said. "This is a key milestone in our company's history, and a testament to the commitment and hard work of our colleagues."

United Solar Ovonic produced 21.6 megawatts of solar generating capacity in the third quarter and 47.4 MW for the first nine months of the fiscal year.

The company confirmed its plans to expand and add 120MW of additional capacity to its existing plant in Greenville. ECD said it will be able to internally fund this expansion through available funds and cash flow from operations. This previously announced expansion will increase the company's nameplate capacity to approximately 300MW by the end of fiscal year 2010.

For the nine months, the company reported a loss of $6 million or 15 cents a share, vs. a loss of $12.1 million or 31 cents a share in the first nine months of the prior fiscal year. Nine-month revenue was $173.5 million, up from $77.6 million for the first nine months of fiscal 2007.

The company also updated its guidance, saying revenue is expected at between $73 million and $78 million for the fiscal fourth quarter ending June30, and between $246 million and $251 million for the full fiscal year. Solar product sales for the fourth quarter are expected to be $68 million to $73 million, and $222 million to $227 million for fiscal 2008. For the fourth quarter, ECD expects it will maintain the 30 to 31 percent gross margin it achieved in the third quarter.

To listen in to a replay of the conference call discussing the results, visit www.ovonic.com or call (800) 642-1687 in the United States and (706) 645-9291 internationally, using the pass code 44703161.