Akeena Solar, Inc. (OTCBB:AKNS), a leading designer and installer of solar power systems, announced results for the first quarter ended March 31, 2007.
Net sales were $6.3 million, an increase of 152%, compared to $2.5 million in Q106. Gross profit was $1.5 million or 24% of sales, compared to $568,000 or 23% of sales in Q106. Net loss was $933,000, or $0.06 per share, compared to net income of $20,000, or less than a penny per share, in Q106. Installations for the quarter were approximately 830 kilowatts, compared to approximately 320 kilowatts for the same period last year.
Barry Cinnamon, CEO of Akeena, stated, “With five new offices opened up in the last nine months, we are steadily expanding our footprint throughout California, which is the largest solar power market in the United States. The impact of our expansion strategy combined with favorable first quarter weather delivered strong top-line results. We generated revenue of $6.3 million this quarter, delivering over 150 percent growth compared to the first quarter last year. 2007 is progressing even better than we expected. Therefore, we now expect revenue of approximately $31 million for 2007, a growth rate of 135 percent compared to 2006.”
David “Lad” Wallace, CFO, commented, “We are implementing our plan to fuel revenue growth and support our expansion strategy. During the quarter, we raised approximately $4.1 million of gross proceeds and used the proceeds to repay debt and to opportunistically increase inventories at a lower cost basis. In addition, we incurred $112,000 in research and development expenses, $100,000 in costs associated with financing activities and $300,000 in costs associated with opening new locations. At March 31, 2007, we closed the quarter with $400,000 in available cash and $1.7 million available under our line of credit.”
For 2007, management is increasing its guidance for revenue growth to approximately 135% over 2006 revenue of $13.4 million. The company previously predicted revenue growth of 125% over 2006 revenue.
About Akeena Solar, Inc.
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 integrators of residential and small commercial solar power systems in the United States, serving customers directly in California, New Jersey, New York, Connecticut and Pennsylvania.
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