US residential and small commercial solar firm RGS Energy (NASDAQ:RGSE) saw its net loss expand to USD 4.4 million (EUR 3.8m) in the third quarter of 2017 from USD 7.7 million a year ago.
The company said in a press statement on Thursday that it still expects to achieve breakeven results in the second quarter of next year thanks to the ongoing trend for a growth in sales. “Our strategy has been to expend cash, investing it in a manner expected to allow us to meet and exceed our quarterly break-even results during 2018,” said CFO and treasurer Alan Fine. In line with its strategy, the company has made certain capital investments to enhance its sales activities and marketing and add equipment inventory.
RGS Energy managed to boost its net sales in the third quarter by 59.9% on the year to USD 3.7 million. The average number of sales per residential direct sales person increased 18%, while residential acquisition cost-per-sale was down 5%. The company’s order backlog improved by 45% from the end of June, fuelling expectations for a further increase in revenues.
Last month, RGS Energy signed an exclusive license deal with Dow Chemical Co (NYSE:DOW) for Dow's Powerhouse solar shingles, which the latter stopped producing in June 2016. “We believe that the revenue potential for this product is huge,” said CEO Dennis Lacey, adding that the company will work to receive a UL certification for the product in the second quarter of 2018.
(USD 1.0 = EUR 0.859)
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