RGS Energy’s posts wider Q1 loss but sees bright future
Rooftop solar system. Author: Centre for Alternative Technology. License: Creative Commons. Attribution 2.0 Generic
US residential and commercial solar installer RGS Energy (NASDAQ:RGSE) on Thursday reported a net loss of USD 4.3 million (EUR 3.6m) for the first quarter of 2018, but said 2018 would be “a truly transformative year.”
Net loss expanded from USD 4 million a year ago.
The company’s CEO Dennis Lacey said RGS Energy is now focusing on the “tremendous market opportunity” of Dow Chemical Co’s (NYSE:DOW) Powerhouse solar shingles, for which it signed an exclusive license deal last year. California's new rule that all new home have to have solar panels after 2020 is expected to further support the success of the Powerhouse products. “So, as we start production and sales in [the solar shingles] market, we expect our quarterly operating income to turn positive in 2019,” Lacey added.
Nevertheless, the company expects to continue to generate operating losses until sales are increased. In the first quarter, its operating loss amounted to USD 4.35 million, widening from USD 3.7 million a year back.
Revenues in the reporting period declined to USD 2.8 million from USD 3.7 million, while net sales climbed to USD 4.2 million from USD 1.4 million. Order backlog at end-March stood at USD 13.9 million, almost doubling from USD 7.4 million a year before.
Following the deal with Dow Chemical, RGS Energy’s plan is to lead all commercial activities for the Powerhouse shingles, which Dow stopped producing in June 2016, including supply chain management, marketing, sales, installation and warranty. As previously announced, it expects to receive UL certification for the product in the second quarter of 2018.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.