First Quarter of 2009 Results:
Gross profit for the first quarter of 2009 was $633 thousand, or 11.0% of sales, compared to $33 thousand, or 0.6% of sales, for the first quarter of 2008.
Operating expenses for the first quarter of 2009 were $3.3 million (57.2% of sales) compared to $2.8 million (48.3% of sales) for the same period last year. Other expenses, net, including interest and taxes were $14 thousand. Weighted average number of common shares outstanding used in computing basic and diluted per share amounts at March 31, 2009 and 2008 were 37,913,965 and 37,594,538, respectively.
Balance Sheet:
Assets included cash and cash equivalents at March 31, 2009 of $1.9 million and accounts receivable and costs and estimated earnings in excess of billings of $5.0 million. Inventory was $5.6 million. Common shares outstanding at March 31, 2009 were 37,933,826.
Recent Company Highlights:
The company secured around $23 million in new contracts for commercial sales that include Aerojet, Costco and Cox Enterprises.
The company sold and shipped one megawatt in modules to Conergy Korea.
The company’s SP200 module has been ranked number three by the California Energy Commission (CEC), placing it in the upper echelon of top performing modules within its class on the market today.
The company signed three new franchisees; Pueblo, Colorado, Helena/Yellowstone, Montana and Central Sierra, California territories.
The company’s first east coast franchisee completed the build out of its Cary, North Carolina retail energy outlet and officially opened for business.
The company filed patent applications for two new product designs.
Operating expenses for the first quarter of 2009 were $3.3 million (57.2% of sales) compared to $2.8 million (48.3% of sales) for the same period last year. Other expenses, net, including interest and taxes were $14 thousand. Net loss for the first quarter of 2009 was $2.7 million, or $0.07 per basic and diluted share, compared to a net loss of $2.8 million, or $0.07 per basic and diluted share, in the first quarter of 2008. Weighted average number of common shares outstanding used in computing basic and diluted per share amounts at March 31, 2009 and 2008 were 37,913,965 and 37,594,538, respectively.
Balance Sheet:
Assets included cash and cash equivalents at March 31, 2009 of $1.9 million and accounts receivable and costs and estimated earnings in excess of billings of $5.0 million. Inventory was $5.6 million. Common shares outstanding at March 31, 2009 were 37,933,826.
Recent company Highlights:
The company secured around $23 million in new contracts for commercial sales that include Aerojet, Costco and Cox Enterprises.
The company sold and shipped one megawatt in modules to Conergy Korea
The company’s SP200 module has been ranked number three by the CEC, placing it in the upper echelon of top performing modules within its class on the market today.
The company signed three new franchisees; Pueblo, Colorado, Helena/Yellowstone, Montana and Central Sierra, California territories.
The company’s first east coast franchisee completed the build out of its Cary, North Carolina retail energy outlet and officially opened for business.
The company filed patent applications for two new product designs.
2009 Outlook:
Despite tight credit markets and economic slowdown in both the commercial and residential channels, the company expects revenues to grow throughout the balance of the year as newly passed solar incentives in the US market and new financing programs for both residential and commercial customers become available. Management expects the sales of solar kits including SkyMount commercial racking systems to international customers will result in year-over-year revenue growth for the direct sales channel. The company reiterates its estimate of 2009 revenue to be $75.8 million to $80.5 million, an increase of 60% to 70% over 2008.
Management Comments:
“The first quarter of 2009 was challenging for most solar companies and we were no exception,” said Steve Kircher, chief executive officer of Solar Power. “The lack of available credit hampered solar system construction in general, while the credit crisis in Europe along with significant weather issues sharply affected sales to the region.”
“Despite challenging market conditions, our pipeline of projects remains strong. Over the last 3 months we have won approximately $23 million in commercial projects that we will be building this summer. Among these wins is a 3.5-megawatt system for Aerojet, a 500-kilowatt system for Costco and two follow-on projects with Cox Enterprises. Each of these recent wins represents continued successful execution of our repeatable footprint commercial business development strategy,” Kircher concluded.
“During the first quarter we also continued to aggressively pursue our international sales strategy and successfully completed an initial order of 1 megawatt in module sales to Conergy in Korea,” Kircher continued. “We also see interest growing internationally in our product innovations as inquiries into both our SkyMount and Peaq Solar Canopy systems grow. Our U.S. residential franchise business, Yes! Solar Solutions, has signed three new franchisees during the first quarter. Our North Carolina franchisee successfully opened a Yes! Solar SolutionsT energy outlet on May 2nd in Cary, North Carolina and is ramping system sales on schedule,” added Kircher.
Backed by the expertise of an experienced, diverse and complete management team, we are well positioned to capitalize on the opportunities offered by growing global demand for solar. As we enter the second quarter of 2009, our pipeline of opportunities is the largest it has been in company history”, Kircher concluded.
