ROSEVILLE, Calif.--(BUSINESS WIRE)--Solar Power, Inc. (OTCBB:SOPW), a vertically integrated manufacturer of photovoltaic (PV) modules and marketer, designer and installer of PV solar electric systems for commercial, public and residential customers in the United States today announced results for the fourth quarter and year ended December 31, 2007.
“We continued to experience solid growth as evidenced by our ability to win new business and deliver measureable revenue growth during our first year of full operations,” said Steve Kircher, CEO of Solar Power, Inc. “Our 2007 revenue more than quadrupled the prior year. The pipeline of business opportunities remains strong as we continue to expand our commercial and residential customer base,” added Mr. Kircher. "Backed by the expertise of an experienced, diverse and complete management team, we are well positioned to capitalize on what we believe is the beginning of a long-term, secular growth opportunity in solar energy.” Mr. Kircher concluded, “Our established brand and vertically integrated model, coupled with the introduction of our YES! Solar Solutions franchise provides multiple avenues for growth in the coming years."
Recent Company Highlights:
* For the full year of 2007 revenues increased 314% to $18.1 Million
* In December 2007, completed a private placement with net proceeds of approximately $11 million.
* Added key senior management creating one of the strongest teams in the industry
* China factory produced initial 2 1/2 megawatts with very high process yields
* Completed several installations of both commercial and residential systems
* In March, 2008 executed the first Yes! Solar Solutions franchise agreement to serve Orange County, CA. The franchise business is a cornerstone for further expansion of growth.
* Completed engineering designs and began wind testing of the Skymount racking system and have other proprietary products under development.
Fourth Quarter of 2007 Results:
Net sales for the fourth quarter of 2007 were $4.7 million, an increase of 224%, compared to $1.5 million in net sales in the fourth quarter of 2006. Growth in the fourth quarter reflects higher volume of commercial and residential installations.
Gross profit for the fourth quarter 2007 was $354 thousand, or 7.5% of sales, compared to $208 thousand, or 14.3% of sales, in the fourth quarter of 2006. On a year-over-year basis, the decline in gross margin reflects costs associated with building manufacturing and installation infrastructure.
Operating expenses for the fourth quarter of 2007 grew to $3 million (64% of sales) compared to $1.9 million (130% of sales) for the same period last year as the company significantly expanded its infrastructure during the year to support its growth plans. Net loss for the fourth quarter of 2007 was $2.7 million, compared to a net loss of $1.7 million, in the fourth quarter of 2006.
Year End 2007 Results:
For the year ended December 31, 2007, the company reported net sales of $18.1 million, an increase of 314% over net sales of $4.4 million for 2006. Gross profit was $2.1 million, or 11.7% of sales compared to gross profit of $1.5 million, or 33.9% of sales in 2006. The decrease in the gross profit margin reflects costs associated with building manufacturing and installation infrastructure.
Operating expenses were $9.4 million or 52% of sales, compared to $3.5 million or 80% of sales for 2006. Net loss for 2007 was $7.2 million, or $0.22 per basic and diluted share, compared to a net loss of $2.1 million, or $0.11 per basic and diluted share, in 2006.
Balance Sheet:
Cash and cash equivalents at December 31, 2007 were $6.8 million. Common shares outstanding at December 31, 2007 were 37,523,263. Accounts receivable were $5.4 million and costs and estimated earnings in excess of billings were $2.2 million at year end. Inventory grew to $6.9 million as we placed nearly a megawatt of solar panels into inventory in the 4th quarter.
2008 Guidance:
The Company previously issued revenue guidance of $60 million for 2008. On March 17th, 2008, the Company announced that the Santa Rosa City School District (“SRCSD”) deferred a vote on whether to proceed with a project designed to place more than 3 megawatts of on-site solar electricity production at 10 of the district’s 30 schools. The SRCSD contract represents a component of Solar Power’s 2008 guidance and the SRCSD Board is set to vote on an amended contract this week. Depending on the outcome, the company will update revenue guidance, if necessary.
Conference Call Information:
The conference call will take place at 4:30pm EDT on Tuesday, March 25, 2008. Interested participants should call 1-800-762-7141 when calling within the United States or 1-480-248-5081 when calling internationally.
A playback will be available through April 1, 2008. To listen, please call 1-800-406-7325 within the United States or 1-303-590-3030 when calling internationally. Utilize the pass code 3856063 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=00004C96, or visiting www.solarpowerinc.net, or at ViaVid's website at www.viavid.net, where the webcast can be accessed through April 1, 2008.
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