Exhibit 99.1
Akeena Solar Announces Third Quarter 2006 Results
Third Quarter 2006 Revenue Reaches $3.6 Million, up 62% over Third
Quarter 2005; Company Increases 2006 Annual Revenue Growth
Expectations to 70% Compared to 2005
LOS GATOS, Calif.--(BUSINESS WIRE)--Nov. 13, 2006--Akeena Solar, Inc. (OTC
BB: AKNS), a leading designer and installer of solar power systems, today
announced results for the third quarter and nine months ended September 30,
2006.
"Strong demand for solar power and solid execution delivered revenue growth
of almost 30 percent sequentially and over 60 percent compared to the third
quarter of last year," said Barry Cinnamon, CEO of Akeena Solar. "In fact, we
are increasing our 2006 revenue guidance to exceed 70 percent growth over 2005.
We intend to build upon our track record of successfully operating in multiple
locations, to capture even greater portion of demand and to leverage
managements' expertise and resources."
"During the quarter, we expanded operations into Fresno, CA. An ideal
location for Akeena, the Central Valley has high energy costs and a strong
rebate program, which has driven a 70 percent compounded annual growth rate
since 2004 in the photovoltaic market segment, according to the California
Energy Commission. Based on ongoing business, this office launched with a
backlog of $2 million to $3 million. Additionally, we strengthened our team by
hiring solar industry veteran Jeff Brown. Brown will lead our central California
initiatives and participate in our expansion efforts into underserved markets."
"In October, we exhibited and sponsored events at Solar Power 2006. The
show was extremely successful with over 8,500 visitors, compared to 2,000 last
year. Solar power installations are on the rise in the U.S. and Akeena is
well-positioned to take advantage of the growing marketplace. Now we are
increasing our 2006 financial expectations, and we believe we will be able to
achieve revenue growth of at least 70 percent annually in 2006 and at least 50
percent annually 2007."
Net sales for the third quarter of 2006 were $3.6 million, an increase of
62 percent compared to $2.2 million in net sales in the third quarter of 2005.
Gross profit for the third quarter was $890,000, or 25 percent of sales,
compared to $699,000, or 32 percent of sales, from the third quarter of 2005.
The company reported a net loss of $527,000, or $0.05 per share, for the third
quarter compared with a net income of $195,000, or $0.02 per share, in the third
quarter 2005.
For the nine months ended September 30, 2006, the company reported net
sales of $8.9 million and gross profit of $2.2 million, or 25 percent of sales.
This compares to net sales of $4.8 million and gross profit of $1.1 million, or
24 percent of sales, for the same period last year. The company reported a net
loss of $755,000, or $0.08 per share, for the first nine months of 2006,
compared to a net loss of $61,000, or $0.01 per share, in the first nine months
of 2005.
Corporate Highlights
-- Installed approximately 400 kilowatts in the third quarter, compared
to approximately 245 kilowatts last year. Installed approximately 960
kilowatts in the nine months ended September 30, 2006, compared to
approximately 630 kilowatts in the same period last year.
-- Hired Jeff D. Brown as Regional Director. With 25 years of solar
industry experience, Brown is on the board of the California Solar
Energy Industry Association (CAL SEIA) and has been a leader in the
state's solar initiatives.
-- Hired two experience design engineers to drive research and
development for the company's proprietary installation technology.
-- Expanded into Fresno, CA office as hub for central California sales
and installations.
-- Exhibited at the well-attended Solar Power 2006 Conference, and
co-hosted the show's closing gala "Celebrating Solar Innovation" Wine
and Food Pairing Reception with Applied Materials, Inc.
-- Expanded the board of directors appointing Edward Roffman, a recent
retiree with over 30 years of experience, including serving as a CFO
and a consultant for numerous private and newly public companies, as
well as extensive acquisition experience.
-- Akeena and its CEO Barry Cinnamon received a Business Commendation
from the Town of Los Gatos, thanking the company for its outstanding
contributions to the community.
Conference Call Information
Akeena Solar will host an earnings conference call at 1:30 p.m. Pacific
Time (4:30 p.m. Eastern Time) today to discuss its third quarter 2006 earnings
results. Management will discuss strategy, review quarterly activity, provide
industry commentary, and answer questions.
The call is being webcast and can be accessed from the "Investor Relations"
section of the company's website at www.akeena.net. If you do not have Internet
access, please dial 1-866-356-4123 in the U.S. International callers should dial
1-617-597-5393. If you are unable to participate in the call at this time, the
webcast will be archived on the company's website. In addition, a telephonic
replay will be available for four business days, beginning two hours after the
call. To listen to the replay, in the U.S., please dial 1-888-286-8010.
International callers should dial 617-801-6888. The passcode is 21427325.
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. For more information, visit Akeena Solar's
website at www.akeena.net
Safe Harbor
Statements made in this release that are not historical in nature
constitute forward-looking statements within the meaning of the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by the use of words such as
"expects," "plans" "will," "may," "anticipates," believes," "should," "intends,"
"estimates," and other words of similar meaning. These statements are subject to
risks and uncertainties that cannot be predicted or quantified and consequently,
actual results may differ materially from those expressed or implied by such
forward-looking statements. Such risks and uncertainties include, without
limitation, risks associated with the uncertainty of future financial results,
additional financing requirements, development of new products, the
effectiveness, profitability, and marketability of such products, the ability to
protect proprietary information, the impact of current, pending, or future
legislation and regulation on the industry, the impact of competitive products
or pricing, technological changes, the effect of general economic and business
conditions. All forward-looking statements included in this release are made as
of the date of this press release, and Akeena Solar assumes no obligation to
update any such forward-looking statements.
CONTACT: Akeena Solar, Inc.
Barry Cinnamon, President and CEO, 888-253-3628
bcinnamon@akeena.net
or
Lippert / Heilshorn & Associates (Investor Relations)
Kirsten Chapman or Mary Magnani, 415-433-3777
mmagnani@lhai.com