SPI Solar Announces Second-Quarter 2012 Financial Results and Revised Business Strategy
SPI Solar, a leading vertically integrated photovoltaic (â€œPVâ€) solar developer, today announced results for the second quarter ended June 30, 2012.
â€œFurthermore, we are encouraged by new legislation in New Jersey via the solar subsidy bills, which increase the percentage of total power utilities the state must derive through solar energy from approximately two percent a year to more than four percent by 2028.â€
Total net sales for the second quarter of 2012 were $24.4 million, down from $35.9 million for the second quarter of 2011 and slightly down from $26.3 million for the prior quarter.
Gross profit for the second quarter of 2012 was $3.5 million, compared with $4.1 million for the second quarter of 2011 and with $2.9 million for the first quarter of 2012.
Total operating expenses for second quarter of 2012 were $6.3 million, or 25.9 percent of total net sales. This compared with total operating expenses of $4.9 million, or 13.5 percent of total net sales, for the second quarter of 2011 and with total operating expenses of $4.2 million, or 15.8 percent of total net sales, for the first quarter of 2012. Second quarter 2012 operating expenses included an impairment charge of $0.7 million due to the decline in the value of the asset held for sale, which was disposed of in the second quarter 2012.
Net loss for the second quarter of 2012 was $2.4 million, or ($0.01) per basic and diluted share. This compared with a net loss of $0.4 million, or $0.00 per basic and diluted share, for the second quarter of 2011 and with a net loss of $0.8 million, or $0.00 per basic and diluted share, for the first quarter of 2012.
Cash and cash equivalents at June 30, 2012 were $23.4 million, slightly down from $24.5 million at December 31, 2011.
Acquired Italian EPC contractor Solar Green Technologies (SGT), leveraging SPIâ€™s global growth strategy and immediately adding 20 megawatts in EPC pipeline through existing contracts serving the Italian rooftop solar market
Purchased the development, EPC and ownership rights to 29.2 megawatts of commercial solar projects or 68 SEFs across the islands of Oahu, Maui and in Kona on the island of Hawaii
Signing of solar subsidy bills S1925 and A.B. 2966 in New Jersey paving way for future project development for SPI — historically the second largest solar industry market in the country — which according to the Mid-Atlantic Solar Energy Industries Association surpassed California in solar deployment during the first quarter of 2012.
â€œWeâ€™re pleased with our recent acquisition of Solar Green Technologies and our co-development agreement with Solar Hub LLC in Hawaii,â€ said Stephen Kircher, CEO of SPI. â€œFurthermore, we are encouraged by new legislation in New Jersey via the solar subsidy bills, which increase the percentage of total power utilities the state must derive through solar energy from approximately two percent a year to more than four percent by 2028.â€
SPI also announced today a Company reorganization and rightsizing to streamline the Companyâ€™s business model to more effectively pursue multiple global growth opportunities. SPIâ€™s focus going forward will be to serve as EPC manager over other outside construction services firms and to provide engineering and procurement services. Approximately 30 positions at the Companyâ€™s California, New Jersey and China offices will be affected, therefore lowering the Companyâ€™s operating expenses accordingly.
â€œThe reorganization of SPI will sharpen our focus as we manage a large pipeline of solar opportunities,â€ said Steve Kircher. â€œServing in a project management and procurement role while sourcing other firms to handle the labor-intensive construction will give us maximum financial flexibility to pursue and execute multiple projects around the world while growing top-line net sales.â€
2012 Business Outlook:
SPI expects 2012 net sales in the range of $150 million to $170 million. A portion of the revenues, previously expected to be recognized in 2012, will slip into 2013, primarily due to module supply issues and a permit delay for a large solar project in New Jersey. Also contributing to the slip, were delays for new project development in New Jersey, leading up to the recently announced subsidy legislation. For the remainder of the year, operating expenses are expected to remain at normalized levels as increases from the SGT acquisition are offset by reorganization rightsizing.
Teleconference and Webcast on August 16:
SPI Solar plans to hold a teleconference to discuss its second quarter 2012 results today at 10:00 a.m. ET. The call can be accessed by dialing 1-877-941-1428 when calling within the United States, or 1-480-629-9665 when calling internationally. A playback will be available through August 23, 2012. To listen to the playback, call 1-877-870-5176 within the United States, or 1-858-384-5517 internationally, and use PIN number 4559357.
This call is also being webcast by ViaVid Broadcasting and can be accessed by clicking http://public.viavid.com/player/index.php?id=101446, or by visiting www.spisolar.com or ViaVid’s website at www.viavid.net. The webcast will be available through August 23, 2012.
About SPI Solar (SOPW:OTCBB):
SPI Solar (â€œSPIâ€) (Solar Power, Inc.) is a vertically integrated photovoltaic solar developer offering its own brand of high-quality, low-cost distributed generation and utility-scale solar energy facility development services. Through the Companyâ€™s close relationship with LDK Solar, SPI extends the reach of its vertical integration from silicon to system. From project development, to project financing and to post-construction asset management, SPI delivers turnkey world-class photovoltaic solar energy facilities to its business, government and utility customers. For additional information visit: www.spisolar.com.
Safe Harbor Statement:
This release contains certain â€œforward-looking statementsâ€ relating to the business of SPI Solar, its subsidiaries and the solar industry, which can be identified by the use of forward-looking terminology such as â€œbelieves”, â€œexpectsâ€ or similar expressions. The forward-looking statements contained in this press release include statements regarding the Companyâ€™s ability to execute its growth plan and meet revenue and sales estimates, enter into formal long-term supply agreements, market acceptance of products and services, and the impact of the Companyâ€™s reorganization and its anticipated benefits on SPI Solarâ€™s business model. In particular, this release contains forward-looking statements regarding the viability and potential profitability of projects to be reviewed and pursued, and whether those projects will ultimately meet underwriting criteria, or financial modeling sufficient for the Company to undertake the projects. The commitments are to introduce and offer the projects, and the Company cannot predict whether all projects will fit within its financial model for execution, or upon terms that are acceptable to all parties involved. These statements also involve known and unknown risks and uncertainties, including, but are not limited to, general business conditions, managing growth, and political and other business risk. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risks and other factors detailed in the Company’s reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.december 31, operating expenses, power utilities, second quarter ended june
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