NORTH BILLERICA, MA – BTU International reported fourth-quarter net sales slipped 19.6% from last year to $14.7 million. The net loss for the period ended Dec. 31 was $2.2 million, versus net income of $600,000 in the fourth quarter 2007.

For the year, net sales rose 13.4% to $72.3 million, but the company took a net loss of $1.1 million, reversing a net profit of $1.9 million in 2007. Cash flow from operations was $2.4 million, and at year-end, the cash balance was $27.5 million.

The company's alternative energy unit's fourth-quarter revenues were up 20% sequentially and almost 70% for the year. The group makes up 28% of BTU's overall systems business. Electronics assembly equipment fell 45% sequentially.

In a press release, chairman and CEO Paul J. van der Wansem said BTU expects the first half to be "very challenging" for its electronics assembly business. "This business, which is driven to a large degree by consumer spending, could be down by over 50% in 2009, impacting our top line and bottom line performance with losses expected in the first two quarters.

“We are encouraged by the initial reception of the upcoming new solar product introductions and the continuing growth of our solar business, and we are optimistic about achieving increased revenues during the year. As our alternative energy business grows to become the major part of our business, we expect to become profitable in the second half.”