Real Goods Solar delays Q2 report, revenues fall

US solar installer Real Goods Solar Inc (NASDAQ:RGSE) has delayed its second-quarter report due to an ongoing derivative valuation process, it said Monday.

The review concerns USD 10 million (EUR 9.1m) of senior subordinated notes issued on April 1 as part of a unit which also contained a warrant to acquire shares. Real Goods Solar said the notes were complex financial instruments which included embedded derivatives and it had retained a third party appraisal firm to determine their fair value. The solar company is now required to file its quarterly report by August 22 and it expects to meet that deadline.

It also said that depending on the results of the derivative valuation process its net loss for the three and six months was expected to be materially increased compared to the same periods in 2015.

Total revenue in the second quarter of 2016 is expected to be USD 4.9 million, down from USD 14.7 million a year ago. The loss from operations will likely be unchanged at USD 3 million.

In the six-month period, total revenue is expected to be down to USD 9.8 million from USD 25.3 million a year ago, with loss from operations narrowing to USD 6.7 million from USD 8.2 million.

(USD 1.0 = EUR 0.909)

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