Solar3D, Inc. , a provider of solar power solutions and the developer of a proprietary high efficiency solar cell, today reported financial results for the third quarter ended September 30, 2015.
· The Company reported revenue of $19.7 million for Q3 2015, more than triple the $6.4 million reported for Q3 2014 due to strong SUNworks organic growth and the addition of MD Energy.
• Gross profit was $5.3 million also tripled with steady gross margins of 27%.
• The Company reported third quarter 2015 operating income of $1.7 million, compared to breakeven for the 2014 third quarter.
• The Company reported net income of $1.4 million or $0.08 per basic share and $0.06 per diluted share for Q3 2015, partially as a result of significant improvement in gross profit compared to the net loss of $13.7 million, or $(1.14) per basic and diluted shares for Q3 2014, which also included one-time non-cash charges related to financing costs.
• Cash and cash equivalents for the Company were $9.3 million on September 30, 2015, compared to $0.4 million at December 31, 2014.
• YTD 2015 revenue of $36.4 million, more than double the $15.0 million reported in 2014.
• YTD 2015 net loss of $0.1 million or $(0.01) per diluted share, compared to a net loss of $17.6 million, or $(1.61) per diluted share for 2014.
• The Company announced entry into a merger agreement to acquire Elite Solar to dominate California’s agricultural sector and establish itself as premier solar provider in the farming sector.
• SUNworks division secured several large California agricultural and commercial projects totaling over $10 million and 5 megawatts of solar power systems during the quarter.
• SUNworks division achieved $4M in residential sales for the month of July, establishing a Company record.
• SUNworks division secured a $1 million contract in Nevada, the first commercial project in the state since opening the Reno office earlier this year.
• The Company appointed Shane Mace to its Board of Directors
“We are proud of the continued success that we have been generating for our business,” said Jim Nelson, CEO of Solar3D. “The third quarter was one of tremendous growth for Solar3D as we reported record revenue and earnings and began to reap the benefits of our efforts to successfully integrate SUNworks and MD Energy subsidiaries into a solar industry leader throughout California and Nevada. We intend to further this consolidation strategy, as evidenced by the major acquisition of Elite Solar, a profitable business that will boost our top line revenue and bottom line earnings. We anticipate closing on or before December 1, and are excited to add them to our team of solar experts who continue to drive sales through organic growth.”
“We are confident that we will exceed the high end of our target revenue guidance which is $40-45 million,” concluded Nelson. “Our goals remain simple and clear – to leverage our operational and financial track record to expand our penetration into the lucrative California and Nevada solar markets, to expand our project portfolio in key markets, and enhance long-term shareholder value .“
Third Quarter 2015 Financial Summary
Solar3D reported revenue of $19.7 million for the quarter ended September 30, 2015, an increase of 208% compared to $6.4 million for the quarter ended September 30, 2014.
For the quarter ended September 30, 2015, the Company reported net operating income of $1.7 million with net income of $1.4 million or $0.08 per basic share and $0.06 per diluted share. The net income compares to a net loss of $13.7 million, or $(1.14) per diluted share during the 2014 third quarter, which included a non-cash loss in the fair value related to the valuation of a derivative liability. Gross profit margin remained constant at 27% for both third quarter 2015 and third quarter 2014.
Total operating expenses for the third quarter ended September 30, 2015 were $3.6 million compared to $1.7 million for the third quarter ended September 30, 2014 but decreased as a percentage of revenue to 18.4% of revenue from 26.6% of revenue. The selling and marketing expenses of nearly $1.6 million and general and administrative expenses of approximately $2.0 million for the quarter ended September 30, 2015 were used to build the Company’s infrastructure to support the current and projected growth.
The metrics tracked in the table above are consistent with Solar3D’s reported financial statements, and represent a full quarter of SUNworks for both 2014 and 2015 and a full quarter of MD Energy for only 2015.