STR Holdings announced unaudited consolidated earnings results for the first quarter ended March 31, 2014. Net sales for the quarter ended March 31, 2014 were $9.3 million, an increase of 40% sequentially and a decline of 17% from first quarter 2013 of 11.2. The sequential increase was driven by approximately 50% higher volume that more than offset a 7% decline in average selling price ("ASP"). On a year--over--year basis, sales volume increased by approximately 10% and ASP declined by approximately 24%.

Net loss and net loss from continuing operations for the first quarter of 2014 was $4.6 million or $0.12 per diluted share. This compares to a net loss from continuing operations of $3.7 million or $0.09 per diluted share, for the fourth quarter of 2013 and net loss and net loss from continuing operations of $4.2 million or $0.10 per diluted share, for the first quarter of 2013. The sequential higher net loss was driven by increased tax expense of $3.1 million partially offset by lower SG&A, research and development expense and bad debt expense.

Adjusted EBITDA for the first quarter of 2014 was $2.9 million compared to $3.6 million from the fourth quarter of 2013. This 19% sequential improvement was primarily driven by lower SG&A, research and development and bad debt expense. This compares to Adjusted EBITDA from continuing operations of $3.6 million for the first quarter of 2013 or 32% of net sales.

Non-GAAP net loss from continuing operations for the first quarter of 2014, was $3.2 million or $0.08 per diluted share. This compares to non-GAAP net loss from continuing operations of $1.9 million or $0.05 per diluted share, for the fourth quarter of 2013 and non-GAAP net earnings from continuing operations of $2.9 million or $0.07 per diluted share, for the first quarter of 2013. Total net cash used in operating activities was $4.9 million against $2.9 million of prior year period.

Capital expenditures amounted to $0.9 million against $0.5 million of prior year period.