North Coast Solar Stocks

August 13, 2009

Solar Power, Inc. Announces Second Quarter 2009 Financial Results

Filed under: SOPW — Tags: , , , , , — Jason @ 4:05 pm

Thursday August 13, 2009, 4:05 pm EDT

ROSEVILLE, Calif.–(BUSINESS WIRE)–Solar Power, Inc. (SOPW), a vertically integrated international designer, manufacturer and marketer of photovoltaic (PV) modules and balance-of-system components and installer of PV solar electric systems for U.S. commercial, public and residential customers today announced results for the second quarter and six months ended June 30, 2009.

Second Quarter of 2009 Results:

Net sales for the second quarter of 2009 were $10.4 million compared to $10.0 million in net sales in the second quarter of 2008. Gross profit for the second quarter of 2009 was $1.6 million, or 14.9% of sales, compared to $1.4 million, or 13.8% of sales, for the second quarter of 2008. Operating expenses for the second quarter of 2009 were $3.2 million (30.4% of sales) compared to $3.3 million (33.0% of sales) for the same period last year. Other expenses, net, including interest and taxes were $21 thousand. Net loss for the second quarter of 2009 was $1.6 million, or $0.04 per basic and diluted share, compared to a net loss of $1.9 million, or $0.05 per basic and diluted share, in the second quarter of 2008. Weighted average number of common shares outstanding used in computing basic and diluted per share amounts for the three months ended June 30, 2009 and 2008 were 37,940,529 and 37,679,721, respectively.

Six Months Ended June 30, 2009 Results:

Net sales for the six months ended June 30, 2009 were $16.2 million compared to $15.9 million in net sales in the comparative period of 2008. Gross profit for the six months ended June 30, 2009 was $2.2 million, or 13.5% of sales, compared to $1.4 million, or 8.9% of sales, for the comparative period of 2008.

Operating expenses for the six months ended June 30, 2009 were $6.5 million (40.0% of sales) compared to $6.1 million (38.6% of sales) for the same period last year. Other expenses, net, including interest and taxes were $40 thousand. Net loss for the six months ended June 30, 2009 was $4.3 million, or $0.11 per basic and diluted share, compared to a net loss of $4.7 million, or $0.12 per basic and diluted share, in the comparative period of 2008. Weighted average number of common shares outstanding used in computing basic and diluted per share amounts for the six months ended June 30, 2009 and 2008 were 37,927,320 and 37,637,129, respectively.

Balance Sheet:

Assets included cash and cash equivalents at June 30, 2009 of $3.4 million and accounts receivable (net) and costs and estimated earnings in excess of billings of $7.5 million. Inventory was $6.6 million. Total assets were $21.3 million while total liabilities were $15.7 million. Common shares outstanding at June 30, 2009 were 37,943,826.

Recent Company Highlights:

* The Company began installation on the 3.5 megawatt P.V. system at Aerojet in Rancho Cordova, CA. The first year environmental benefits of this system equate to offsetting approximately 8,270,000 car miles driven or the clean air benefits realized from planting 976,520 trees.
* Solar Power, Inc. extended its global sales of its solar products to Europe and Australia and signed sales representation agreements with agents in the Balkans and Greece.
* The Company completed one of Georgia’s largest solar systems and the second solar site for Cox Enterprises.
* Utilizing 3,300 173-watt Solyndra panels, the Company was awarded, and began installation of its first Solyndra solar system at Costco in New Jersey with completion scheduled for the third quarter of 2009.
* Two of the Company’s 200-watt modules were ranked number one and number two in comparative performance ratings awarded by the California Energy Commission (“CEC”). In April of 2009, Solar Power Inc. announced another of its 200-watt modules had been ranked number three by the CEC.

Management Comments:

“The second quarter of 2009 began to show the improvements in the solar market that we have been planning for,” said Steve Kircher, CEO of Solar Power, Inc. “The lack of available credit in the second quarter continued to make solar projects requiring financing difficult to complete. In spite of this, we successfully sold products and projects for cash into the solar markets and due to favorable pricing trends in silicon we were also able to increase our gross margin.”

“We commenced construction on our 3.5 megawatt project at Aerojet and our 500 kW system for Costco using Solyndra modules. That job will be completed in the third quarter,” Mr. Kircher continued.

“Our international business development strategy continues to make solid progress. We continue to increase our base of customers. We shipped to 2 new international customers over the second quarter in addition to shipments made to existing customers. These products consist of both our highly rated solar modules and our proprietary racking systems,” Mr. Kircher pointed out. “We also added additional sales representatives in Australia, Greece and the Balkans to bolster our international presence.”

“In addition,” Mr. Kircher stated, “we have initiated entry into utility-scale projects by optioning some properties that should develop nicely into this market segment and help create better visibility over the next few years for large-scale growth.”

“We also are repositioning our sales strategy for our Yes! residential systems by moving towards a distribution model selling directly to third-party integrators and/or through distribution networks across the U.S.” Mr. Kircher said, “With the favorable solar subsidies available throughout the U.S. on the residential front, we have decided that we can ramp revenues much faster through this model than through a traditional franchise system.”

“We continue to focus on delivering top-line growth with increasing margins by executing on our high-quality, low-cost manufacturing expertise. The solar industry appears to be well situated for growth and we continue to add opportunities to our expanding pipeline of business,” Mr. Kircher concluded.

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 solar incentives in the U.S. market and new financing programs for both residential and commercial customers become available. Based on first half financial results, current and anticipated commercial installations, and anticipated product sales to international markets, the Company revises its projected revenues to $60 to $70 million for 2009.

Conference Call Information:

The conference call will take place at 4:30pm EDT on Thursday, August 13, 2009. Interested participants should call 1-877-941-8632 when calling within the United States or 1-480-629-9821 when calling internationally.

A playback will be available through August 20, 2009. To listen, please call 1-800-406-7325 within the United States or 1-303-590-3030 when calling internationally. Utilize the pass code 4134647 for the replay.

This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://viavid.net/dce.aspx?sid=000068A6, or visiting http://www.solarpowerinc.net, or at ViaVid’s website at http://www.viavid.net, where the webcast can be accessed through May 21, 2009.

SOLAR POWER, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except for share data)

As of June 30, 2009 (unaudited) As of December 31, 2008 (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 3,356 $ 5,915
Accounts receivable, net of allowance for doubtful accounts of $275 and $49 at June 30, 2009 and December 31, 2008, respectively 7,041 3,010
Costs and estimated earnings in excess of billings on uncompleted contracts 430 294
Inventories, net 6,583 4,665
Asset held for sale 138
Prepaid expenses and other current assets 751 771
Restricted cash 527 527
Total current assets 18,826 15,182
Goodwill 435 435
Restricted cash 273
Property, plant and equipment at cost, net 1,769 2,178
Total assets $ 21,303 $ 17,795
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 11,754 $ 3,916
Accrued liabilities 2,968 3,058
Income taxes payable 249 248
Deferred revenue 184
Billings in excess of costs and estimated earnings on uncompleted contracts 21 160
Loans payable and capital lease obligations 337 342
Total current liabilities 15,513 7,724
Loans payable and capital lease obligations, net of current portion 142 311
Deferred revenue 125
Total liabilities 15,655 8,160
Commitments and contingencies
Stockholders’ equity
Preferred stock, par $0.0001, 20,000,000 shares authorized,
none issued and outstanding at June 30, 2009 and December 31, 2008
Common stock, par $0.0001, 100,000,000 shares authorized,
37,943,826 and 37,771,325 shares issued and outstanding at June 30, 2009 and December 31, 2008, respectively 4 4
Additional paid in capital 28,362 28,029
Accumulated other comprehensive loss (222 ) (222 )
Accumulated deficit (22,496 ) (18,176 )
Total stockholders’ equity 5,648 9,635
Total liabilities and stockholders’ equity $ 21,303 $ 17,795
SOLAR POWER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except for share data)

For the Three Months Ended For the Six Months Ended
June 30, 2009 (unaudited) June 30, 2008 (unaudited) June 30, 2009 (unaudited) June 30, 2008 (unaudited)
Net Sales $ 10,414 $ 10,046 $ 16,195 $ 15,879
Cost of goods sold 8,859 8,663 14,007 14,464
Gross profit 1,555 1,383 2,188 1,415
Operating expenses:
General and administrative 2,134 2,545 4,436 4,675
Sales, marketing and customer service 837 633 1,635 1,191
Engineering, design and product management 193 135 399 268
Total operating expenses 3,164 3,313 6,470 6,134
Operating loss (1,609 ) (1,930 ) (4,282 ) (4,719 )
Other income (expense):
Interest expense (16 ) (48 ) (28 ) (74 )
Interest income 1 66 5 105
Other income, net (6 ) 5 (12 ) 6
Total other income (21 ) 23 (35 ) 37
Loss before income taxes (1,630 ) (1,907 ) (4,317 ) (4,682 )
Income tax expense 3 3
Net loss $ (1,630 ) $ (1,907 ) $ (4,320 ) $ (4,685 )
Net loss per common share:
Basic and diluted $ (0.04 ) $ (0.05 ) $ (0.11 ) $ (0.12 )
Weighted average number of common shares used in computing per share amounts
37,940,529 37,679,721 37,927,320 37,637,129

Contact:

Solar Power, Inc.
Stephen C. Kircher, 916-745-0900
CEO
or
HC International, Inc.
Ted Haberfield, 760-755-2716
Vice President
thaberfield@hcinternational.net
Advertisements

Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Blog at WordPress.com.

%d bloggers like this: