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Akeena solar financial data May 16, 2007

Posted by solarpundit in Finance, Solar News.
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Akeena Solar Quarterly Report

I find it interesting when public companies post their quarterly results because it give some great insight into how their business is run; where their money is going, and the overall direction of their organization.  Monday, Akeena posted their first quarter earning results for their business, and their balance sheet and income statement reveal a lot about their business.

 

In looking at Akeena’s earnings statement, their first quarter revenue was around $6.2 million; with a gross profit of 24% and an installed base of about 830 kW.  In addition, their general administrative costs are now around $1.6 million.  If we break down these numbers, we can see the following:

 

Their general cost per watt for an installation is around $7.58 per Watt, with their cost for the installation at around $5.77 per Watt and for each watt installed, they make about $1.81 (24%).

 

Akeena has opened five new offices this year and their G & A expenses have grown from 384 thousand to 1.6 million.  If we assume that each office has roughly the same costs, it takes about $84,000 to run one of their offices for a month. 

 

Their accounts receivable are currently $5.2 million which seems a bit high to me, but may be accounted for by their growth rate.  Their inventory also seems high, but that is the cost of spreading your service proposition across multiple geographies.

 

Finally their sales and marketing spend has grown significantly over the past year.  I’ll be the first to admit that they are in the media and are doing a good job of getting noticed.  However, in an industry whose growth rate is still in around 20%, it looks like their strategy is one of a land grab.  It resembles the old internet philosophy of “Get Big Fast.”  If they have the capital necessary to support their growth goals, they should do okay.

 

Tags:  Akeena, Solar, Quarterly Report, Growth, Energy Land Grab, Cost per Watt, Cost of Solar, Solar revenues

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