August 16, 2013 - SPI Solar today announced its results for the second quarter ended June 30, 2013.
Total net sales for the second quarter of 2013 were $4.2 million, compared with $24.4 million for the second quarter of 2012. Construction starts with KDC Solar in New Jersey resumed in Q2 for the previously announced Imclone and Mountain Creek projects. Prospects for new projects beyond the current pipeline continue to be impacted by financial lending and solar industry conditions in general.
Total cost of goods sold for the second quarter of 2013 was $3.3 million, compared with $20.9 million for the second quarter of 2012. This reflected fewer projects initiated or completed during the second-quarter 2013 period, and the corresponding decrease in revenue.
Total operating expenses for the second quarter of 2013 were $7.4 million, compared with $6.3 million for the second quarter of 2012. Second quarter 2013 general and administrative expenses included one-time charges of $3.0 million for a bad debt reserve related to the pending collectability of a private solar project in New Jersey and $750,000 in impairment charges resulting from a change to extended payment conditions on the Greece projects.
Net loss for the second quarter of 2013 was $6.8 million, or ($0.03) per basic and diluted share. This compared with a net loss of $2.1 million, or ($0.01) per basic and diluted share, for the second quarter of 2012.
Cash and cash equivalents at June 30, 2013 were $0.2 million, compared with $17.8 million at December 31, 2012. During the first quarter of 2013, $13.0 million of construction funds provided by China Development Bank were drawn down and sent to KDC Solar to cover construction costs for the Imclone project. Short-term cash continues to be tight as the company has large amounts of pending accounts receivables from customers awaiting bank debt term financing for SPI-constructed and commissioned projects in Greece and New Jersey.