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August 7, 2008
Los
Gatos, CA, USA: Akeena Solar Announces Second Quarter 2008 Results
Akeena
Solar, a designer and installer of solar power systems, yesterday
announced results for the second quarter of 2008.
Net
sales for the second quarter of 2008 were $7.1 million, a decrease
of 6.0% compared to $7.5 million in net sales in the second quarter
of 2007 and a decrease of 42% compared to $12.2 million in sales
in the first quarter of 2008. Net sales for the first six months
of 2008 were $19.3 million, up 39.9% from the same period last
year.
Gross
profit for the second quarter of 2008 was $1.0 million, or 14.8%
of sales, compared to $1.8 million, or 23.6% of sales, in the
second quarter of 2007 and compared to $2.4 million, or 19.7%
of sales, in the first quarter of 2008. Compared to both the prior
year and first quarter, gross profit margin declined due primarily
to higher than anticipated costs on commercial projects started
in the first quarter and completed in the second quarter. For
the first half of 2008, gross profit was $3.5 million compared
to $3.3 million for the same period last year; gross profit margin
for the first six months of 2008 was 17.9% compared to 23.7% last
year.
Total
operating expenses for the second quarter of 2008 were $6.2 million
compared to $3.7 million for the same period last year and $7.1
million in the first quarter of 2008. Compared to the second quarter
of 2007, the $2.5 million variance consisted of higher compensation
expense and costs associated with having 12 offices this year
compared to 7 offices in the second quarter of 2007. Compared
to the first quarter of 2008, the 13.5% decline in operating expenses
was due primarily to personnel reductions. Total operating expenses
for the first half of 2008 were $13.3 million compared to $6.1
million in the first half of 2007.
Net
loss for the second quarter of 2008 was $5.1 million, or $0.18
per share, compared to a net loss of $1.9 million, or $0.10 per
share, in the second quarter of 2007 and a net loss of $4.6 million,
or $0.16 per share in the first quarter of 2008. Net loss for
the first six months of 2008 was $9.7 million, or $0.35 per share
compared to $2.9 million, or $0.16 per share for the first half
of 2007.
Installations
for the quarter amounted to approximately 854 kilowatts compared
to approximately 935 kilowatts last year and approximately 1,587
kilowatts in the first quarter of 2008.
"Second
quarter results highlight our emphasis on residential solar power
installations and the continued growth in that market. Second
quarter revenues of $7.1 million reflect a 6.5% sequential increase
in residential installations, but were overshadowed by a decline
of 79% in commercial installations,'' said Barry Cinnamon, president
and chief executive officer.
"Although
our pipeline of commercial jobs has never been larger, because
commercial installations span multiple quarters we expect to see
continued revenue volatility as commercial projects become a larger
portion of our revenue mix. On the cost side, we reduced cash
G&A operating expenses by $0.6 million during the quarter, a greater
amount than we had anticipated at the beginning of the quarter,
and have reduced headcount by 36 positions since the beginning
of the year. We remain on track to remove a total of $2 million
in cash expenses by year end compared to our original plan."
Cinnamon
concluded, ``Despite the prolonged uncertainty about the passage
of the Investment Tax Credit (ITC), interest in solar power shows
no signs of abating; our backlog at the end of the second quarter
was $13.6 million, bookings are at record levels; and our pipeline
of residential and commercial projects continues to grow and extend
into the first half of 2009. Still, there is no question that
economic weakness and the delay in the passage of the ITC is impeding
industry growth this year.''
Further details about: Akeena
Solar
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