SunWorks Inc (SUNWQ)

[accounting101]

SLTD profitable division SUNworks rapid growth story:


1. SUNworks revenue for 2013 was over $8.5m and they were profitable for 2013. SUNworks expects SIGNIFICANT top line and bottom line growth in 2014.
2. Jim Nelson, "we expect to build one of the fastest growing and most profitable companies in the solar systems market."
3. SUNworks new residential division had revenue "approaching" $1m per month in April.
4. By May 15th, "We are experiencing new sales over $1MM per month on the residential side of our business".
5. Year-over-year revenue grew 110% and Gross Profit grew 146% in Q1 2014 over Q1 2013.
6. After noting January revenue grew 300% over 2013, Jim Nelson said "We believe that this is indicative of the trend of our solar systems business this year".
7. Break even is roughly $2.8MM in quarterly revenue. April revenue was $1.5MM, so as long as SUNworks matches that in May they will surpass that threshold with ease.

SUNworks, by all accounts, will be approaching 1/8th the size of Solar City in revenue this year. However, Solar City is valued at 269x more than SUNworks (as measured by Market Cap), yet SUNworks is profitable and Solar City is NOT!