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Economy

California's Solar Power loses $7 million

Mark Glover - The Sacramento Bee

May 25, 2010 06:38 AM

Roseville-based Solar Power Inc. is still losing millions of dollars each quarter, but it nonetheless predicts a bright future.

The firm reported Monday that it lost $7 million, or 17 cents a share, for 2009, compared with a loss of $8.7 million, or 23 cents a share in 2008.

For the quarter ended March 31, SPI lost $3.2 million, or 6 cents a share, compared with a loss of $2.7 million, or 7 cents a share, in the first quarter of 2009.

While acknowledging the losses, the 5-year-old company, which makes and sells solar power systems and panels, also pointed to past sales increases and robust revenue projections in the future.

The company's sales increased nearly 11 percent in 2009 — to $52.6 million, compared with $47.4 million in 2008. Sales in the first three months of this year totaled $5.8 million, up slightly from $5.7 million in the year-ago period.

The local company has announced a string of contract awards over the past few months, and projects that it will collect between $80 million and $90 million in revenue this year.

Last week, SPI said it was hired to design and construct a 397-kilowatt photovoltaic solar system to power BLT Enterprises' Recycling and Transfer Station, which provides recycling and disposal services to customers in Fremont, Newark and Union City.

SPI CEO Steve Kircher said the decline of the euro against the dollar "killed us" in the first quarter, prompting the company to insist that customers "pay us in dollars." At the same time, however, Kircher said SPI anticipates increased involvement in potentially lucrative, large-scale utility projects.

To read the complete article, visit www.sacbee.com.

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