STR Holdings, Inc. announced unaudited consolidated financial results for the second quarter and six months ended June 30, 2015. For the quarter, net sales were $8,515,000, compared to $11,222,000 for the last year. sequential increase was driven by approximately 21% higher volume and a 3% increase in average selling price ("ASP"). The sequential volume increase was primarily driven by new Chinese customer wins as well as growth in the European and India markets. The year-over-year second quarter decrease was driven by approximately 13% lower volume and a 13% decline in ASP. Operating loss was $3,045,000, compared to $3,852,000 for the last year. Loss from continuing operations before income tax benefit was $3,260,000, compared to $1,044,000 for the last year. Loss from continuing operations were $3,313,000 or $0.18 per diluted share compared to $1,640,000 or $0.19 per diluted share for the last year. Net loss was $3,313,000 or $0.18 per diluted share, compared to $1,640,000 or $0.19 per diluted share for the last year. Total diluted non-GAAP net loss per share was $0.18 compared to $0.44 for the last year. Total net cash used in operating activities was $2,012,000, compared to $213,000 for the last year. Capital investments were $885,000, compared to $774,000 for the last year. Non-GAAP net loss from continuing operations was $3,167,000 or $0.18 per diluted share, compared to $3,866,000 or $0.44 per diluted share for the last year. Adjusted LBITDA was $2,480,000, compared to $3,982,000 for the last year. The year-over-year improvement was due to reduced gross loss and improved bad debt, partially offset by increased R&D and unfavorable foreign currency impact. The sequentially higher net loss of $0.7 million was primarily due to negative foreign exchange impact. On a year-over-year basis, net loss from continuing operations increased by $1.7 million compared to the corresponding 2014 period driven by a $0.2 million unfavorable impact from foreign currency as well as the net impact for the following special items recorded in 2014 that did not recur in 2015: $4.1 million non-cash product performance accrual reversal; $0.8 million in restructuring accrual reversals and the $1.3 million loss on reclassification in 2014. These negative impacts more than offset reduced gross loss, improved bad debt and lower income tax expense achieved in the second quarter of 2015.

For the six months ended June 30, 2014, net sales were $15,378,000, compared to $20,558,000 for the last year. Operating loss was $6,082,000, compared to $7,788,000 for the last year. Loss from continuing operations before income tax benefit was $5,813,000, compared to $5,547,000 for the last year. Net loss from continuing operations was $5,919,000 or $0.33 per diluted share, compared to $6,282,000 or $0.52 per diluted share for the last year. Net loss was $5,919,000 or $0.33 per diluted share, compared to $6,282,000 or $0.52 per diluted share for the last year. Total diluted non-GAAP net loss per share was $0.31 compared to $0.58 for the last year. Total net cash used in operating activities was $3,675,000, compared to $5,120,000 for the last year. Capital investments were $2,277,000, compared to $1,720,000 for the last year. Non-GAAP net loss from continuing operations was $5,580,000 or $0.31 per diluted share, compared to $7,025,000 or $0.58 per diluted share for the last year. Adjusted LBITDA was $4,249,000, compared to $6,905,000 for the last year.