Earlier this week Evergreen Solar, Inc. (Nasdaq: ESLR) reported a net loss of $411.0 million for the fourth quarter of 2010, largely based on a write-down related to its announced closing of its Devens, Mass., manufacturing facility. The news, though expected, disheartened analysts, some of which dropped their target stock prices or ratings for the already beleaguered company.

Perhaps the only bright spot in the company’s earnings report was increased revenues. During the fourth quarter of 2010, revenue increased to $89.3 million up from $86.5 million in the third quarter and from $74.5 million from the previous year’s fourth quarter.

“I think we will continue to see a bumpy road for Evergreen for the next six months,” said Adam Krop an analyst with Ardour Capital Investments. Based on the higher-than-expected reported loss for the quarter, Ardour reduced its target stock price from $2.50 to $1.50. Other companies, like J.P. Morgan, took similar actions; it dropped its rating on Evergreen’s shares from “neutral” to “underweight."

In a bid to become profitable, the company is moving all of its production to China, and changing its manufacturing model.

"Today, we are focusing all of our energies and resources in delivering an industry standard size and high performance low cost wafer," said Evergreen CEO Michael El-Hillow in a press release. “In-depth negotiations to obtain significant financing for expansion and customer support for our industry-standard wafer are attracting very strong interest, and we are expecting to have more details to share on our progress by early summer.”

“There is still a lot of execution risk,” Krop said—for instance, the financing of $1 billion in new capital and development of an industry-standard wafer.

“They’re transitioning their technology from a non-standard wafer size. They’re working on a 156 millimeter wafer that will easily integrate into customer’s cell and module lines,” said Krop. “The standardization will make their product more appealing to downstream customers. That’s another piece of the puzzle.”

But while the move to China is set in stone, the company’s new home overseas still hasn’t been paid for.

“They have to line up the financing for the Chinese facility. That’s up in the air. The company’s success really depends on the financing of the facility,” Krop said.