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Akeena Solar Announces First Quarter 2007 Results
Akeena Solar Announces First Quarter 2007 Results
Published 05-14-07
Submitted by Akeena Solar
LOS GATOS, Calif.--(BUSINESS WIRE)--May 14, 2007--Akeena Solar, Inc. (OTCBB:AKNS), a leading designer and installer of solar power systems, today announced results for the first quarter ended March 31, 2007.
Net sales for the first quarter of 2007 were $6.3 million, an increase of 152 percent, compared to $2.5 million in net sales in the first quarter of 2006. Gross profit for the first quarter 2007 was $1.5 million or 24 percent of sales, compared to $568,000 or 23 percent of sales in the first quarter of 2006. Net loss for the first quarter of 2007 was $933,000, or $0.06 per share, compared to net income of $20,000, or less than a penny per share, in the first quarter of 2006. Installations for the quarter were approximately 830 kilowatts, compared to approximately 320 kilowatts for the same period last year.
Barry Cinnamon, CEO of Akeena, stated, "With five new offices opened up in the last nine months, we are steadily expanding our footprint throughout California, which is the largest solar power market in the United States. The impact of our expansion strategy combined with favorable first quarter weather delivered strong top-line results. We generated revenue of $6.3 million this quarter, delivering over 150 percent growth compared to the first quarter last
year. 2007 is progressing even better than we expected. Therefore, we now expect revenue of approximately $31 million for 2007, a growth rate of 135 percent compared to 2006."
David "Lad" Wallace, CFO, commented, "We are implementing our plan to fuel revenue growth and support our expansion strategy. During the quarter, we raised approximately $4.1 million of gross proceeds and used the proceeds to repay debt and to opportunistically increase
inventories at a lower cost basis. In addition, we incurred $112,000 in research and development expenses, $100,000 in costs associated with financing activities and $300,000 in costs associated with opening new locations. At March 31, 2007, we closed the quarter with $400,000 in available cash and $1.7 million available under our line of credit."
Recent Corporate Highlights
-- Established an advisory board in March to guide management on strategic, economic, and political opportunities. Members include Joe Abrams, consultant, and Steve Westly, CEO and founder of The Westly Group and former controller and CFO of the State of California.
-- Raised approximately $4.1 million of gross proceeds in a private offering in March.
-- Initiated phase one of The California Air National Guard installation in April.
-- Opened four new offices in California to take advantage of the rapidly growing demand for solar power.
-- In January, began operations in Orange County.
-- In early April, began operations in Bakersfield, located in California's Central Valley. The market for solar power systems in the Central Valley has been experiencing an average 100 percent annual growth rate since 2003.
-- In late April, began operations in Manteca, which is
strategically located between the San Francisco Bay Area and California's Central Valley.
-- In May, began operations in Santa Rosa, located in Sonoma County, which provides the company with a base of operations in the North Bay and surrounding areas.
Outlook
For 2007, management is increasing its guidance for revenue growth to approximately 135 percent over 2006 revenue of $13.4 million. The company previously predicted revenue growth of 125 percent over 2006 revenue.
Conference Call Information
Akeena Solar will host an earnings conference call at 11:00 a.m. Pacific Time (2:00 p.m. Eastern Time) today to discuss its first quarter 2007 earnings results. Management will discuss strategy, review quarterly activity, provide industry commentary, and answer questions.
The call is being webcast and can be accessed from the "Investor Relations" section of the company's website at www.akeena.net. If you do not have Internet access, please dial 800-261-3417 in the U.S. International callers should dial 617-614-3673. The pass code is 37624450. If you are unable to participate in the call at this time, the webcast will be archived on the company's website. In addition, a telephonic replay will be available for two business days, beginning two hours after the call. To listen to the replay, in the U.S., please dial 888-286-8010. International callers should dial 617-801-6888. The passcode is 98867983.
About Akeena Solar, Inc.
Founded in 2001, Akeena Solar's philosophy is simple: We believe producing clean electricity directly from the sun is the right thing to do for our environment and economy. Akeena Solar has grown to become one of the largest national integrators of residential and small commercial solar power systems in the United States, serving
customers directly in California, New Jersey, New York, Connecticut and Pennsylvania. For more information, visit Akeena Solar's website at www.akeena.net
Safe Harbor
Statements made in this release that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "expects," "plans," "will," "may," "anticipates," believes," "should," "intends," "estimates," and other words of similar meaning. These statements are subject to risks and uncertainties that cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, the effectiveness, profitability, and marketability of such products, the ability to protect proprietary information, the impact of current, pending, or future legislation and regulation on the industry, the impact of competitive products or pricing, technological changes, the ability to identify and successfully acquire, integrate and manage client accounts and locations and deliver our services to customers of businesses and accounts acquired from third parties, the effect of general economic and business conditions. All forward-looking statements included in this release are made as of the date of this press release, and Akeena Solar assumes no obligation to update any such forward-looking statements.
| AKEENA SOLAR, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||
| Three Months Ended March 31, | |||||
| 2007 | 2006 | ||||
| Net sales | $ | 6,292,430 | $ | 2,490,173 | |
| Cost of sales | 4,792,864 | 1,921,797 | |||
| Gross profit | 1,499,566 | 568,376 | |||
| Operating expenses | |||||
| Sales and marketing | 768,131 | 151,500 | |||
| General and administrative | 1,637,861 | 384,215 | |||
| Total operating expenses | 2,405,992 | 535,715 | |||
| (Loss) income from operations | (906,426) | 32,661 | |||
| Other income (expense) | |||||
| Interest income (expense), net | (26,978) | (13,031) | |||
| Total other income (expense) | (26,978) | (13,031) | |||
| (Loss) income before provision for taxes | (933,404) | 19,630 | |||
| Provision for income taxes | — | — | |||
| Net (loss) income | $ | (933,404) | $ | 19,630 | |
| (Loss) earnings per common and common equivalent share: | |||||
| Basic | $ | (0.06) | $ | 0.00 | |
| Diluted | $ | (0.06) | $ | 0.00 | |
| Weighted average shares used in computing (loss) earnings per common and common equivalent share: | |||||
| Basic | 16,463,663 | 9,000,000 | |||
| Diluted | 16,463,663 | 9,000,000 | |||
| AKEENA SOLAR, INC. CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) | ||
| March 31, 2007 | ||
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ | 376,429 |
| Accounts receivable, net | 5,212,807 | |
| Inventory | 3,914,403 | |
| Prepaid expenses and other current assets, net | 1,093,925 | |
| Total current assets | 10,597,564 | |
| Property and equipment, net | 273,623 | |
| Due from related party | 21,825 | |
| Customer list, net | 184,791 | |
| Other assets | 76,459 | |
| Total assets | $ | 11,154,262 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities | ||
| Accounts payable | $ | 2,532,945 |
| Customer rebate payable | 1,286,818 | |
| Accrued liabilities | 693,040 | |
| Accrued warranty | 600,724 | |
| Deferred revenue | 1,274,065 | |
| Credit facility | 100,000 | |
| Current portion of capital lease obligations | 12,498 | |
| Current portion of long-term debt | 27,567 | |
| Total current liabilities | 6,527,657 | |
| Capital lease obligations, less current portion | 39,448 | |
| Long-term debt, less current portion | 79,688 | |
| Total liabilities | 6,646,793 | |
| Commitments, contingencies and subsequent events | ||
| Stockholders’ equity: | ||
| Preferred stock, $0.001 par value; 1,000,000 shares authorized; none issued and outstanding at March 31, 2007 | — | |
| Common stock $0.001 par value; 50,000,000 shares authorized; 18,015,196 shares issued and outstanding at March 31, 2007 | 18,015 | |
| Additional paid-in capital | 7,003,932 | |
| Accumulated deficit | (2,514,478) | |
| Total stockholders’ equity | 4,507,469 | |
| Total liabilities and stockholders’ equity | $ | 11,154,262 |
Copyright Business Wire 2007
Akeena Solar
Akeena Solar
Akeena Solar is one of the largest national installers of solar power systems. We install turn-key solar power systems for residential and commercial customers and we take pride in every job we do. Akeena Solar is traded on the OTCBB as AKNS.OB.
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