SPI Solar Announces First-Quarter 2014 Financial Results

  SPI Solar Announces First-Quarter 2014 Financial Results

Business Wire

ROSEVILLE, Calif. -- May 28, 2014

SPI Solar (“SPI”) (SOPW:OTCBB), a vertically integrated photovoltaic solar
developer, today announced its results for the first quarter ended March 31,

First-Quarter 2014 and Recent Updates:

  *Announced on May 6, 2014, that the company had entered into a definitive
    purchase agreement for the sale of $21.75 million of common stock in a
    private placement with non-U.S. investors
  *Settled Cathay Bank debt with repayment in full on May 15, 2014
  *Collected approximately $1 million in cash as partial settlement of a
    project that had previously been written off as uncollectable
  *Appointed two new seasoned executives: Roger Yu, former financial
    controller of LDK Solar, as interim chief financial officer, and H.K.
    Cheong, a solar industry operations veteran who returns to SPI Solar from
    Sunways AG, as chief operating officer
  *Executed additional progress on projects in New Jersey, Hawaii and on two
    California-based projects in North Palm Springs and Sacramento
  *Pursued new business strategies for SPI Solar to enter the China
    residential solar market via the introduction and distribution of its YES!
    brand of high-quality, low-cost solar kits for residential deployment.

“We are pleased with the significant progress we have made recently toward
improving SPI Solar’s balance sheet,” said Min Xiahou, global chief executive
officer of SPI. “Furthermore, we are encouraged by the commitment demonstrated
by our investors in entering into a private placement, which should enhance
our financial position once the transaction closes. These steps, coupled with
the appointments of key executives Roger Yu and H.K. Cheong to lead SPI Solar
financially and operationally, is expected to strengthen our strategy of
uncovering solar business opportunities. One such opportunity is our Yes!
solar initiative, which we believe should enable the company to harness
emerging growth prospects in the residential solar sector in China,” continued

First-Quarter 2014 Results:

Total net sales for the first quarter of 2014 were $3.6 million, compared with
$1.8 million for the first quarter of 2013. For the fourth quarter of 2013,
SPI Solar reported total net sales of $15.4 million.

Total cost of goods sold for the first quarter of 2014 was $3.4 million,
compared with $1.3 million for the first quarter of 2013. Total cost of goods
sold for the fourth quarter of 2013 was $18.7 million.

Total operating expenses for the first quarter of 2014 were $1.3 million,
compared with $3.4 million for the first quarter of 2013. Operating expenses
for the fourth quarter of 2013 were $14.5 million.

Net loss for the first quarter of 2014, was $0.8 million, or ($0.00) per basic
and diluted share. This compared with a net loss of $3.1 million, or ($0.02)
per basic and diluted share, for the first quarter of 2013, and with a net
loss of $18.7 million, or ($0.09) per basic and diluted share, including
several one-time charges, for the fourth quarter of 2013.

Cash and cash equivalents at March 31, 2014 were $0.3 million, compared with
$1.0 million at December 31, 2013.

About SPI Solar (SOPW:OTCBB):

SPI Solar (“SPI”) (Solar Power, Inc.) is a vertically integrated photovoltaic
solar developer offering its own brand of high-quality, low-cost distributed
generation and utility-scale solar energy facility development services. From
project development, to project financing and to post-construction asset
management, SPI delivers turnkey world-class photovoltaic solar energy
facilities to its business, government and utility customers. For additional
information visit: www.spisolar.com.

Safe Harbor Statement:

This release may contain certain “forward-looking statements” relating to the
business of SPI Solar, its subsidiaries and the solar industry, which can be
identified by the use of forward-looking terminology such as “believes",
“expects” or similar expressions. These statements involve known and unknown
risks and uncertainties, including, but are not limited to, the ability of SPI
Solar to complete its private placement of shares of common stock, generate
new EPC projects and its ability to obtain funding for such projects, general
business conditions, managing growth, and political and other business risk.
All forward-looking statements are expressly qualified in their entirety by
this cautionary statement and the risks and other factors detailed in the
company's reports filed with the Securities and Exchange Commission. The
company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required under applicable securities

(In thousands, except for share data)

                                                   March 31,    December 31,
                                                    2014          2013
Current assets:
Cash and cash equivalents                           $ 272         $  1,031
Accounts receivable, net of allowance for             5,336          6,260
doubtful accounts of $5,887
Accounts receivable, related party                    3,843          3,905
Notes receivable                                      8,371          8,450
Inventories, net                                      23             23
Prepaid expenses and other current assets            4,831         4,458
Total current assets                                  22,676         24,127
Intangible assets                                     989            1,132
Restricted cash, net of current portion               400            400
Accounts receivable, noncurrent                       12,749         12,349
Notes receivable, noncurrent                          13,668         13,668
Investment in affiliate                               7,536          7,536
Property, plant and equipment at cost, net           11,489        11,752
Total assets                                        $ 69,507      $  70,964
Current liabilities:
Accounts payable                                    $ 3,493       $  3,919
Accounts payable, related party                       50,904         50,907
Line of credit                                        4,250          4,250
Accrued liabilities                                   737            741
Billings in excess of costs and estimated            692           862
earnings on uncompleted contracts
Total current liabilities                             60,076         60,679
Financing and capital lease obligations               11,641         11,730
Other liabilities                                    1,418         1,422
Total liabilities                                    73,135        73,831
Commitments and contingencies                         -              -
Stockholders’ deficit:
Preferred stock, par $0.0001, 20,000,000 shares       -              -
authorized; none issued and outstanding
Common stock, par $0.0001, 250,000,000 shares
authorized; 198,214,456 shares issued and             20             20
Additional paid in capital                            53,591         53,376
Accumulated other comprehensive loss                  (333    )      (189    )
Accumulated deficit                                  (56,906 )     (56,074 )
Total stockholders’ deficit                          (3,628  )     (2,867  )
Total liabilities and stockholders’ deficit         $ 69,507      $  70,964

(In thousands, except for per share data)

                                            For the Three Months Ended
                                             March 31,
                                             2014             2013
Net sales                                    $ 3,613           $ 1,766
Total net sales                                3,613             1,766
Cost of goods sold                            3,416            1,287
Total cost of goods sold                      3,416            1,287
Gross profit                                   197               479
Operating expenses:
General and administrative                     970               2,260
Sales, marketing and customer service          317               739
Engineering, design and product management    -                448
Total operating expenses                      1,287            3,447
Operating loss                                 (1,090      )     (2,968      )
Other (expense) income:
Interest expense                               (122        )     (1,005      )
Interest income                                410               539
Other (expense) income, net                   (30         )    302
Total other income (expense), net             258              (164        )
Loss before income taxes                       (832        )     (3,132      )
Provision for income taxes                    -                9
Net loss                                     $ (832        )   $ (3,141      )
Net loss per common share:
Basic and Diluted                            $ (0.00       )   $ (0.02       )
Weighted average number of common shares
used in computing per share amounts:
Basic and Diluted                             198,214,456      198,214,456


Solar Power, Inc.
Roger Yu, 800-548-8767
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