Real Goods Solar Reports First Quarter Fiscal 2009 Results
BOULDER, Colo., May 6 /PRNewswire-FirstCall/ -- Real Goods Solar, Inc. (NASDAQ:RSOL), a leading residential solar energy integrator, announced today results for its first quarter ended March 31, 2009.
Revenue for the first quarter of 2009 increased 45.1% to $9.5 million from $6.6 million recorded in the same period last year, primarily due to acquisitions.
Gross profit increased to $2.3 million, or 24.2% of revenue, for the quarter from $1.8 million, or 28.0% of revenue, in the comparable period last year. The decrease in gross margin percentage primarily reflects the consolidation of acquisitions, which have traditionally produced lower gross profit margins.
Operating expenses as a percent of revenue increased to 47.8% for the quarter, from 35.4% in the comparable period last year. This increase primarily reflects the impact of the consolidation of the acquisition of Regrid Power during the fourth quarter of 2008, integration costs related to the Company's 2008 acquisitions, severance costs from a reduction in work force, and the incremental costs associated with being a public company.
Net loss for the first quarter was $1.4 million, or $0.08 per share, as compared to a net loss of $0.3 million, or $0.03 per share, for the same period last year.
Results for the first quarter of 2008 do not include Real Goods' acquisitions of Independent Energy Systems and Regrid Power, related integration costs, nor any of the costs associated with being a public company.
"The first quarter is generally our slowest quarter of the year due to seasonality, winter weather and shorter installation days," commented Tom McCalmont, Chief Executive Officer. "This effect was magnified during the first quarter of 2009 by the very challenging economic environment. However, as the sun has come out this spring and our new marketing initiatives have taken hold, we have begun to see some initial momentum in sales and we are hopeful that this trend will continue as we enter into the prime summer selling months. While our optimism remains cautious, we are encouraged by the signing of a number of significant sales contracts during the last sixty days, representing over $30 million of revenue."
"During the first quarter we remained highly focused on acquisition integration, which included further reductions in headcount, centralization of corporate functions, standardization of products and processes, and a drive towards improved operational efficiencies," said Erik Zech, Chief Financial Officer. "Additionally, we implemented significant improvements to the cost structure of our organization and expect to see initial benefits from these improvements during the second quarter. The continuing acquisition integration and cost saving initiatives have further positioned us to weather the recession and to drive future profitability. We also made improvements to our balance sheet during the quarter by reducing inventory and accounts receivable. As a result of these efforts, our cash position improved to $12.9 million at quarter end."
