Solar Power's Loss Widens to $2.8 Million in First Quarter
Posted on: Tuesday, 13 May 2008, 00:00 CDT
By Mark Glover, The Sacramento Bee, Calif.
May 12--Roseville-based Solar Power Inc. posted a $2.8 million loss in the first quarter due to increased operating expenses, even as its revenue shot up by 70.9 percent.
Solar Power also revised projected revenue downward by $24 million due to the cancellation of a major project in Santa Rosa. The 3-year-old company manufactures photovoltaic modules and markets, designs and installs PV solar electric systems for commercial, public and residential customers nationwide.
On Monday, Solar Power said revenue was $5.8 million for the quarter ended March 31, up from $3.4 million in the first three months of 2007.
Much of that gain was linked to $5.3 million in sales in the firm's photovoltaic installation, integration and product segments, compared with $2.4 million a year ago.
However, Solar Power said its operating expenses for the first quarter grew to $2.8 million, compared with $2.0 million last year.
That accounted, in part, for the $2.8 million quarterly loss, or 7 cents a share, compared with a loss of $1.1 million, or 3 cents, in the year-earlier period.
The company said operating expenses swelled as it applied resources to grow its residential and commercial solar segments.
"Our plan and focus will be to continue the development of our solar panel manufacturing facility, manufacturing our branded solar system products, generating new commercial opportunities and organizing a distribution model through the development of a franchise network," said Jeff Winzeler, Solar Power's chief financial officer.
The company also announced that it is revising its revenue guidance downward to $36 million from $60 million for 2008, because the Santa Rosa City School District voted not 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 contract represented $23 million of Solar Power's 2008 previous guidance, the company said.
"Despite the setback ..., our pipeline of business opportunities remains strong as we continue to expand our commercial and residential customer base," said Steve Kircher, Solar Power's chief executive.
Find out more about Solar Power at www.solarpowerinc.net.
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Source: The Sacramento Bee
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