RGS Energy books USD-3.5m Q2 net loss, hopeful on turnaround

US solar installer RGS Energy (NASDAQ:RGSE) on Tuesday reported a net loss of USD 3.5 million (EUR 3.2m) for the second quarter of 2016, versus a USD-1.4-million profit a year back.

Operating loss from continuing operations was almost unchanged at USD 2.9 million, compared to USD 3 million in the second quarter of 2015, while revenue dropped to USD 4.9 million from USD 14.7 million.

The company, officially called Real Goods Solar Inc, provided some second-quarter estimates earlier this month, when it said it had requested more time to file its quarterly financial report (http://renewables.seenews.com/news/real-goods-solar-delays-q2-report-revenues-fall-536560).

RGS Energy has been working on a turnaround strategy since the final quarter of 2014. It now said the financial resources it had managed to arrange recently would allow it to execute its turnaround plan.

In April the company issued USD 10 million of convertible notes. It has so far received USD 1.75 million of cash, with the remaining restricted cash of USD 8.25 million expected to become available starting as early as October 1, 2016, according to the announcement. The firm has also filed for a unit offering. It plans to sell 5,000 units, each comprised of one to-be-created convertible preferred share and one warrant to acquire a fraction of one common share.

"We look forward to being able to deploy the additional capital in the coming months to grow our revenue," said chief executive Dennis Lacey.

In the first six months of the year, the company's net loss widened to USD 7.1 million from USD 2.3 million, while revenue fell to USD 9.8 million from USD 25.3 million.

(USD 1.0 = EUR 0.909)

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