Exhibit 99.1
Akeena Solar Announces First Quarter 2007 Results
- First Quarter 2007 Revenue Reaches $6.3 Million, Up 152% over
First Quarter 2006 -
- Raises Revenue Guidance to 135 Percent Annual Growth Over 2006 -
LOS GATOS, Calif.--(BUSINESS WIRE)--May 14, 2007--Akeena Solar,
Inc. (OTCBB:AKNS), a leading designer and installer of solar power
systems, today announced results for the first quarter ended March 31,
2007.
Net sales for the first quarter of 2007 were $6.3 million, an
increase of 152 percent, compared to $2.5 million in net sales in the
first quarter of 2006. Gross profit for the first quarter 2007 was
$1.5 million or 24 percent of sales, compared to $568,000 or 23
percent of sales in the first quarter of 2006. Net loss for the first
quarter of 2007 was $933,000, or $0.06 per share, compared to net
income of $20,000, or less than a penny per share, in the first
quarter of 2006. 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."
Recent Corporate Highlights
- -- Established an advisory board in March to guide management on
strategic, economic, and political opportunities. Members include
Joe Abrams, consultant, and Steve Westly, CEO and founder of The
Westly Group and former controller and CFO of the State of
California.
- -- Raised approximately $4.1 million of gross proceeds in a private
offering in March.
- -- Initiated phase one of The California Air National Guard
installation in April.
- -- Opened four new offices in California to take advantage of the
rapidly growing demand for solar power.
-- In January, began operations in Orange County.
-- In early April, began operations in Bakersfield, located in
California's Central Valley. The market for solar power systems
in the Central Valley has been experiencing an average 100
percent annual growth rate since 2003.
-- In late April, began operations in Manteca, which is
strategically located between the San Francisco Bay Area and
California's Central Valley.
-- In May, began operations in Santa Rosa, located in Sonoma
County, which provides the company with a base of operations in
the North Bay and surrounding areas.
Outlook
For 2007, management is increasing its guidance for revenue growth
to approximately 135 percent over 2006 revenue of $13.4 million. The
company previously predicted revenue growth of 125 percent over 2006
revenue.
Conference Call Information
Akeena Solar will host an earnings conference call at 11:00 a.m.
Pacific Time (2:00 p.m. Eastern Time) today to discuss its first
quarter 2007 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 800-261-3417 in the U.S.
International callers should dial 617-614-3673. The pass code is
37624450. 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 two business days, beginning
two hours after the call. To listen to the replay, in the U.S., please
dial 888-286-8010. International callers should dial 617-801-6888. The
passcode is 98867983.
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
ability to identify and successfully acquire, integrate and manage
client accounts and locations and deliver our services to customers of
businesses and accounts acquired from third parties, 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.
AKEENA SOLAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
-----------------------------
2007 2006
-------------- --------------
Net sales $ 6,292,430 $ 2,490,173
Cost of sales 4,792,864 1,921,797
-------------- --------------
Gross profit 1,499,566 568,376
-------------- --------------
Operating expenses
Sales and marketing 768,131 151,500
General and administrative 1,637,861 384,215
-------------- --------------
Total operating expenses 2,405,992 535,715
-------------- --------------
(Loss) income from operations (906,426) 32,661
-------------- --------------
Other income (expense)
Interest income (expense), net (26,978) (13,031)
-------------- --------------
Total other income (expense) (26,978) (13,031)
-------------- --------------
(Loss) income before provision for
taxes (933,404) 19,630
Provision for income taxes -- --
-------------- --------------
Net (loss) income $ (933,404) $ 19,630
============== ==============
(Loss) earnings per common and common
equivalent share:
Basic $ (0.06) $ 0.00
============== ==============
Diluted $ (0.06) $ 0.00
============== ==============
Weighted average shares used in computing
(loss) earnings per common and common
equivalent share:
Basic 16,463,663 9,000,000
============== ==============
Diluted 16,463,663 9,000,000
============== ==============
AKEENA SOLAR, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
March 31, 2007
----------------
Assets
Current assets
Cash and cash equivalents $ 376,429
Accounts receivable, net 5,212,807
Inventory 3,914,403
Prepaid expenses and other current assets, net 1,093,925
----------------
Total current assets 10,597,564
Property and equipment, net 273,623
Due from related party 21,825
Customer list, net 184,791
Other assets 76,459
----------------
Total assets $ 11,154,262
================
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 2,532,945
Customer rebate payable 1,286,818
Accrued liabilities 693,040
Accrued warranty 600,724
Deferred revenue 1,274,065
Credit facility 100,000
Current portion of capital lease obligations 12,498
Current portion of long-term debt 27,567
----------------
Total current liabilities 6,527,657
Capital lease obligations, less current portion 39,448
Long-term debt, less current portion 79,688
----------------
Total liabilities 6,646,793
----------------
Commitments, contingencies and subsequent events
Stockholders' equity:
Preferred stock, $0.001 par value; 1,000,000
shares authorized; none issued and outstanding at
March 31, 2007 --
Common stock $0.001 par value; 50,000,000 shares
authorized; 18,015,196 shares issued and
outstanding at March 31, 2007 18,015
Additional paid-in capital 7,003,932
Accumulated deficit (2,514,478)
----------------
Total stockholders' equity 4,507,469
----------------
Total liabilities and stockholders' equity $ 11,154,262
================
CONTACT: Akeena Solar, Inc.
Barry Cinnamon, 888-253-3628
President and CEO
bcinnamon@akeena.net
or
Lippert / Heilshorn & Associates
Mary Magnani, 415-433-3777 (Investor Relations)
mmagnani@lhai.com