Message #51 From:
TheMachine Date: August 13, 2009 10:22:49 PM
AKNS Solar Stock News : Akeena Solar Announces Second Quarter 2009 Results
Second
Quarter 2009 Operating Expenses of $4.3 Million, $1.8 Million Lower
Than Second Quarter 2008 and $1.4 Million Lower Than First Quarter 2009
LOS GATOS, Calif., July 30, 2009 (GLOBE NEWSWIRE) -- Akeena Solar,
Inc. (Nasdaq:AKNS), a leading designer and installer of solar power
systems, announced results for the second quarter ended June 30, 2009.
"As a result of the cost reduction measures we took over the last
few quarters, our operating expenses were down 30% from last year and
24% from the first quarter, reducing our cash burn to approximately
$2.5 million for the quarter," said Barry Cinnamon, president and chief
executive officer of Akeena Solar. "We managed our working capital
effectively, ending the quarter with $7.0 million of cash, an increase
of $4.1 million from the end of the first quarter. In addition, our net
cash position (cash less our credit facility) improved $8.1 million
since year-end. Our increased backlog, lower cash burn and commitment
to tight expense control are evidence of the continued progress we are
making towards sustainable profitability.
"Residential installations continued to provide the majority of our
$5.9 million of total revenue in the second quarter. Bookings picked up
throughout the quarter and we ended the quarter with a backlog of $7.5
million as compared to $4.8 million as of the end of the first quarter.
Falling panel prices, higher net incentives and higher electricity
rates are improving the economics for residential customers. As a
result, they are enjoying faster paybacks than ever before. Rooftop
solar power, long the province of early adopters, is moving closer to
the mainstream in sunny areas of the country with high electric rates,"
continued Cinnamon.
"We've made the strategic decision to focus our residential and
commercial installation work in California, and employ a multi-channel
distribution strategy to sell Andalay AC and DC panels in all other
markets. The second quarter marked the beginning of this strategy; and
we started to generate revenue from sales to Morgan Stanley Solar
Solutions and to solar installers in a number of states. We are very
encouraged by our progress and believe that the distribution business
will become an important contributor to revenue over time," concluded
Cinnamon.
Second Quarter Financial Results
Net loss for the second quarter of 2009 was $4.7 million, or $0.14
per share, compared to a net loss of $5.1 million, or $0.18 per share,
in the second quarter of 2008, and a net loss of $5.1 million, or $0.17
per share, in the first quarter of 2009. The second quarter net loss
includes a $1.5 million non-cash charge that represents mark-to-market
adjustments to reflect the fair value of common stock warrants
accounted for as a liability in accordance with provisions of the
warrant agreements. Excluding the non-cash charge, net loss for the
second quarter of 2009 was $3.1 million, or $0.09 per share, an
improvement of $0.09 per share compared to the second quarter of 2008
primarily due to operating expense reductions of $1.8 million. The
first quarter of 2009 also included a $1.5 million non-cash charge
related to the fair value adjustment of common stock warrants.
Excluding the non-cash charge, net loss for the first quarter of 2009
was $3.5 million, or $0.12 per share. Comparing the second quarter to
the first quarter of 2009 and excluding the non-cash charges in both
periods, net loss per share improved $0.03 primarily due to operating
expense reductions of $1.4 million partially offset by lower gross
profit. Average common and equivalent shares outstanding during the
second quarter of 2009 were 33.7 million.
Net loss for the first six months of 2009 was $9.8 million, or $0.32
per share, compared to net loss of $9.7 million, or $0.35 per share,
for the same period last year. The non-cash adjustment to the fair
value of common stock warrants for the first half of 2009 was $3.1
million. Excluding the non-cash charge, net loss for the first six
months of 2009 was $6.7 million, or $0.22 per share, an improvement of
$3.0 million or $0.13 per share compared to the same period last year,
primarily due to operating expense reductions of $3.3 million.
Net sales for the second quarter of 2009 were $5.9 million compared
to $7.1 million in net sales in the second quarter of 2008, and $7.6
million in the first quarter of 2009. The decline in the second quarter
over the same quarter last year and the prior quarter reflects our
decision to exit the direct installation business on the East coast and
lower commercial revenue due to the tight credit market and overall
economic conditions. Approximately $424,000 of the decline from last
year and $901,000 of the decline from the first quarter were
attributable to the absence of East coast installations. Residential
installations in the second quarter of 2009 were $4.7 million, compared
to $5.5 million in the second quarter last year and $6.7 million in the
first quarter of 2009. Commercial sales were $665,000 in the second
quarter of 2009 compared to $1.6 million in the second quarter of 2008,
and $915,000 in the first quarter. The balance of second quarter 2009
revenue was from the distribution of Andalay solar panels and sales of
other solar panels. Net sales for the first six months of 2009 were
$13.5 million, compared to $19.3 million in the same period last year
reflecting a decline in commercial revenue of $6.8 million.
"Lower panel prices and lower direct labor costs contributed to an
improvement in our gross profit margin compared to last year which, at
19.7%, was in the center of our target range of 15% to 25% of revenue.
We expect gross margins to increase modestly in the second half of the
year as we benefit from falling panel prices," said Gary Effren, chief
financial officer of Akeena Solar. Gross profit for the second quarter
of 2009 was $1.2 million, or 19.7% of sales, compared to $1.0 million,
or 14.8% of sales, in the second quarter of 2008 and $2.3 million, or
29.7% of sales in the first quarter of 2009. The decline in gross
margin compared to the first quarter of 2009 reflects higher
subcontractor costs associated with our exit from the Colorado direct
installation business, lower margin panel sales and a lower residential
average selling price. For the first half of 2009, gross profit was
$3.4 million, compared to $3.5 million for the same period last year;
gross profit margin for the first six months of 2009 was 25.3% compared
to 17.9% last year, primarily due to lower panel prices.
Total operating expenses for the second quarter of 2009 were $4.3
million compared to $6.2 million for the same period last year, and
$5.7 million in the first quarter of 2009. Compared to the second
quarter of 2008, the $1.8 million variance consisted of a decline in
sales and marketing expenses of $647,000 and a decline in general and
administrative costs of $1.2 million, reflecting the full impact of
cost cuts made in the fourth quarter of 2008 and the first quarter of
2009. Stock-based compensation expense was $458,000 in the second
quarter of 2009 compared to $639,000 for the same period last year and
$540,000 in the first quarter. Cash operating expenses (adjusted for
stock-based compensation expense and depreciation and amortization
expense) were $3.7 million in the second quarter of 2009 compared to
$5.4 million for the same period last year and $5.0 million in the
first quarter of 2009. Total operating expenses for the first half of
2009 were $10.0 million compared to $13.3 million in the first half of
2008.
Installations for the quarter amounted to approximately 716
kilowatts compared to approximately 876 kilowatts in the same quarter
last year and approximately 945 kilowatts in the first quarter of 2009.
Backlog as of June 30, 2009 was $7.5 million reflecting only California
residential sales and a modest amount of commercial bookings.
Cash and cash equivalents at June 30, 2009 were $7.0 million. The
$1.0 million cash-backed line had no balance drawn as of quarter end.
The number of employees at quarter end was reduced to 125 from 137
at the end of the first quarter of 2009 and from 203 at June 30, 2008.
Outlook
For 2009, management continues to expect a modest build in
residential sales, driven by improving solar economics, and a
continuing ramp in the direct-to-dealer distribution channel, with
commercial installations picking up late in 2009 or early 2010 when the
benefits of the stimulus package are expected to begin to take effect.
Given continued limited visibility in the company's business,
especially with respect to commercial installations, management is not
providing annual guidance at this time.
Conference Call Information
Akeena Solar will host an earnings conference call at 11:00 a.m. PT
(2:00 p.m. ET) today to discuss its second quarter 2009 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.com. If you
do not have Internet access, please dial 877-866-5534 in the U.S.
International callers should dial 706-643-1178. The conference ID is
17769114. A replay of the call will be available via telephone for one
week, beginning two hours after the call. To listen to the telephone
replay in the U.S., please dial 800-642-1687 and for international
callers, 706-645-9291. The conference ID is the same as above. In
addition, the webcast will be archived on the company's website for 90
days at www.akeena.com.
About Akeena Solar, Inc. (Nasdaq:AKNS)
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 installers of residential and commercial
solar power systems in the United States. The company's integrated
solar panel system, Andalay, is the only solar panel system with
integrated racking, wiring and grounding. Andalay panels offer
unprecedented reliability, performance and aesthetics. For more
information, visit Akeena Solar's website: http://www.akeena.com or
Andalay Solar's website: http://www.andalaysolar.com.
