Akeena Solar, Inc. (Nasdaq:AKNS), a designer and installer of solar power systems, announced disappointing results for 2Q08.
Net loss for 2Q08 was $5.1 million, or $0.18 per share,
compared to a net loss of $1.9 million, or $0.10 per share, in 2Q007 and a net loss of $4.6 million, or $0.16 per
share in 1Q08. Net loss for the first six months
of 2008 was $9.7 million, or $0.35 per share compared to $2.9 million,
or $0.16 per share for the first half of 2007.
Net sales for the second quarter of 2008 were $7.1 million, a
decrease of 6.0% compared to $7.5 million in net sales in 2Q07 and a decrease of 42% compared to $12.2 million in
sales in 1Q08. Net sales for the first six months
of 2008 were $19.3 million, up 39.9% from the same period last year.
Compared to both the prior year and first
quarter, gross profit margin for 2Q declined due primarily to higher than
anticipated costs on commercial projects started in the first quarter
and completed in the second quarter. For the first half of 2008, gross
profit was $3.5 million compared to $3.3 million for the same period
last year; gross profit margin for the first six months of 2008 was
17.9% compared to 23.7% last year.
Total operating expenses for 2Q08 were $6.2 million compared to $3.7 million
for the same period last year and $7.1 million in 1Q08.
Compared to 2Q07, the $2.5 million variance
consisted of higher compensation expense and costs associated with
having 12 offices this year compared to 7 offices in 2Q07. Compared to 1Q08, the 13.5% decline in
operating expenses was due primarily to personnel reductions. Total
operating expenses for the first half of 2008 were $13.3 million
compared to $6.1 million in the first half of 2007.
Installations for
the quarter amounted to approximately 854 kilowatts compared to
approximately 935 kilowatts last year and approximately 1,587 kilowatts
in 1Q08.
"Second quarter results highlight our emphasis on residential solar power installations and the continued growth in that market. Second quarter revenues of $7.1 million reflect a 6.5% sequential increase in residential installations, but were overshadowed by a decline of 79% in commercial installations," said Barry Cinnamon, president and CEO.
"Although our pipeline of commercial jobs has never been larger, because commercial installations span multiple quarters we expect to see continued revenue volatility as commercial projects become a larger portion of our revenue mix," Cinnamon said.
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