Real Goods Solar (RSOL) Revenues Surge, Losses Mount

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08:48:49 pm on March 10, 2009

After its solar installing rival Akeena Solar (AKNS) reported awful results several days ago, you couldn’t expect much out of Real Goods Solar (RSOL) after the bell today and they didn’t disappoint.  Taking out the big costs of acquisition in the quarter, they still reported a .10/share loss.  Analysts had expected the company to be flat in the quarter with no losses after one time costs.  On the bright side, this is a company that continues to improve revenue growth, but much of that is likely due to its acquisitions and not organic growth. 

“We are working hard to cut costs and drive synergies across the Real Goods organization during this challenging period and anticipate being complete with most of our integration by the end of April,” said Erik Zech, Chief Financial Officer. “The changes we are making will position the Company to drive profitability. Our balance sheet remains strong with over $12 million of cash at the end of the year and we are intensely focused on improving this position going forward.”

The bottom line is that these solar installers are burning through cash at a rapid rate so it’s a race against the clock to slash costs enough to survive and take advantage of the likely pickup in solar installations.  At such depressed levels, perhaps one of the big solar manufacturers will take them out with an offer they can’t refuse. 

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