Losses Keep Mounting For Akeena Solar (AKNS)

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09:33:25 am on February 26, 2009

Another awful quarter for Akeena Solar (AKNS) which continues to pile up losses with profitability nowhere in sight.  Akeena Solar reported a Q4 loss of $0.32, versus the analyst estimate of ($0.17). Revenues for the quarter were $10.9 million, versus the consensus of $11.53 million.  That’s about a 60% increase in the EPS loss over the year ago quarter with a minor bump in revenues.  This is a company that better stop the bleeding in a hurry.

“Fourth quarter revenue grew to $10.9 million, led by strong residential installation revenue which increased 23% over last year to $8.4 million, driven in part by an immediate reaction to the passage of the solar ITC midway through the quarter. However, commercial installations slowed to $2.4 million under the weight of extremely tight credit conditions compounded by the timing of the ITC,” said Barry Cinnamon, president and chief executive officer of Akeena Solar. “By quarter’s end, the economic slowdown, lack of available credit, and falling home values were weighing heavily on our customers.”

Highlights:

– began selling Andalay panels in Jan 08 which are now #4 in residential market share behind SunPower, Sharp & Kyocera
– reduced incremental costs of Andalay from .85/watt to .45/watt
– closed east coast operations
– will transition to the Andalay AC systems later this year

For this year the company expects a slow 1st quarter with growth picking up as the year progresses facilitated by the newly uncapped ITC and new residential financing programs.  Commercial business isn’t expected to pick up until late 09 (I think that’s being too optimistic) as the stimulus bill takes effect.  Revenue growth is projected at 10 – 20% and the company anticipates achieving EBITDA breakeven in the 2nd half of 09.

Shares are off about 20% at the open and likely headed to break below a buck soon.

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