Solar Power, Inc. Announces Third Quarter 2009 Financial Results

http://www.businesswire.com/news/home/20091109006573/en

ROSEVILLE, Calif.--(Business Wire)--
Solar Power, Inc. (OTCBB:SOPW), a vertically integrated international designer,
manufacturer and marketer of photovoltaic (PV) modules and balance-of-system
components and installer of PV solar electric systems for U.S. commercial,
public and residential customers today announced results for the third quarter
and nine months ended September 30, 2009.

Third Quarter of 2009 Results:

Net sales for the third quarter of 2009 were $22.3 million compared to $19.6
million in net sales in the third quarter of 2008, an increase of 13.5% over the
comparative period. Gross profit for the third quarter of 2009 was $5.1 million,
or 23.1% of sales, compared to $1.9 million, or 9.5% of sales, for the third
quarter of 2008. Operating expenses for the third quarter of 2009 were $3.5
million (15.6% of sales) compared to $2.8 million (14.4% of sales) for the same
period last year. Other income, net, including interest and taxes was $79
thousand. Net income for the third quarter of 2009 was $1.7 million, or $0.05
per basic share and $0.04 diluted share, compared to a net loss of $1.0 million,
or ($0.03) per basic and diluted share, in the third quarter of 2008. Weighted
average number of common shares outstanding used in computing basic per share
amounts for the three months ended September 30, 2009 was 38,994,000 and the
weighted average number of common shares outstanding used in computing the
diluted per share amounts for the three months ended September 30, 2009 was
39,201,234. The weighted average number of common shares outstanding used in
computing the basic and diluted per share amounts for the three months ended
September 30, 2008 was 37,740,368.

Nine Months Ended September 30, 2009 Results:

Net sales for the nine months ended September 30, 2009 were $38.5 million
compared to $35.5 million in net sales in the comparative period of 2008, an
increase of 8.4%. Gross profit for the nine months ended September 30, 2009 was
$7.3 million, or 19.0% of sales, compared to $3.3 million, or 9.2% of sales, for
the comparative period of 2008.

Operating expenses for the nine months ended September 30, 2009 were $9.9
million (25.9% of sales) compared to $9.0 million (25.2% of sales) for the same
period last year. Other income, net, including interest and taxes was $43
thousand. Net loss for the nine months ended September 30, 2009 was $2.6
million, or $0.07 per basic and diluted share, compared to a net loss of $5.7
million, or $0.15 per basic and diluted share, in the comparative period of
2008. Weighted average number of common shares outstanding used in computing
basic and diluted per share amounts for the nine months ended September 30, 2009
and 2008 were 38,286,787 and 37,671,794, respectively.

Balance Sheet:

Assets include cash and cash equivalents at September 30, 2009 of $9.3 million
and accounts receivable (net) and costs and estimated earnings in excess of
billings of $21.8 million. Inventory was $5.9 million. Total assets were $40.9
million while total liabilities were $22.2 million. Common shares outstanding at
September 30, 2009 were 50,020,826.

Recent Company Highlights:

* The Company completed a private placement to accredited investors of
14,077,000 shares of its common stock with net proceeds of approximately $12.8
million.
* The Company began installation on the 3.5 megawatt P.V. system at Aerojet in
Rancho Cordova, CA. The first year environmental benefits of this system equate
to offsetting approximately 8,270,000 car miles driven or the clean air benefits
realized from planting 976,520 trees.
* Ventura County California Board of Supervisors selected SPI to install 497 kW
PV solar systems on two of the county`s buildings.

Management Comments:

"As we have continually stressed, our model is based upon growing top-line
revenue, increasing gross margin in a volatile silicon market and managing
spending," said Steve Kircher, CEO & Chairman of SPI. "Our third quarter results
highlight our focus on the execution of these key metrics. We continued our
momentum from the second quarter, took advantage of a declining silicon market,
and achieved gross margins that are actually slightly higher than what we
anticipate margins will be in a stabilized market. Credit, especially
construction financing is still difficult to obtain but take-out financing for
larger projects is loosening up," Mr. Kircher stated.

"We will be commissioning our 3.5 megawatt project at Aerojet tomorrow and
interconnecting shortly thereafter," Mr. Kircher announced. "This system will be
one of the largest systems commissioned this year and is another great reference
project for us."

"Our international business remains very solid and we continue to develop new
customers interested in both our top-ranked modules and our suite of proprietary
racking systems," Mr. Kircher said.

"With regard to our plan to develop utility-scale projects, we have exercised
our options on two pieces of property that we anticipate we will commence
construction on next year," said Mr. Kircher. "These two projects alone total
over 13 megawatts. We have several other utility scale projects that we believe
can bring us a large, predictable base of business for the next several years."

"We expensed over $250,000 in the third quarter while changing the direction of
the Yes! business model from a franchise model to a direct distribution model,"
Mr. Kircher stated. "We have signed up 6 additional dealers for our Yes!
products since September 30, 2009 and received many qualified leads for our Yes!
distributorships at the recent solar show held in Anaheim, California," Mr.
Kircher pointed out. "We remain convinced that the residential market will start
to grow very fast and that we can participate in this growth through the sale of
our already well established solar kits."

"In short, we are very excited about delivering on our key performance metrics,
we`re confident that our solar sales pipeline and opportunities will continue to
allow us to drive top line growth and we are proving that we can scale up our
top-line while maintaining reasonably flat spending," Mr. Kircher concluded.

2009 Outlook:

Based on 2009 year to date` financial results, current and anticipated
commercial installations, and anticipated product sales to international
markets, the Company reiterates its projected revenues between $60 to $70
million for 2009.

Conference Call Information:

The conference call will take place at 4:30pm EST on Wednesday, November 11,
2009. Interested participants should call 1-888-549-7704 when calling within the
United States or 1-480-629-9857 when calling internationally.

A playback will be available through November 18, 2009. To listen, please call
1-800-406-7325 within the United States or 1-303-590-3030 when calling
internationally. Utilize the PIN number 4180621 for the replay.

This call is being webcast by ViaVid Broadcasting and can be accessed by
clicking on this link http://viavid.net/dce.aspx?sid=00006CA5, or visiting
www.solarpowerinc.net, or at ViaVid's website at www.viavid.net, where the
webcast can be accessed through November 18, 2009.

About Solar Power, Inc.:

Founded in 2005, Solar Power, Inc. is a vertically integrated solar energy
solution provider offering the North American commercial and public sector
building markets a complete solution through a single brand. The Company`s Yes!
Solar, Inc. subsidiary provides the U.S. small- to mid-sized business and
residential market segments with turnkey PV solar systems through a growing
dealer distribution network. Throughout Europe, Australia and Asia, the Company
sells its products direct to distributors and turnkey solutions providers. Solar
Power, Inc. operates from its Roseville, California headquarters.

Safe Harbor Statement:

The earnings release and conference call may contain certain "forward-looking
statements" relating to the business of Solar Power, Inc., its subsidiaries and
the solar industry, which can be identified by the use of forward looking
terminology such as "believes, expects" or similar expressions. The forward
looking statements contained in this press release include statements regarding
the Company's ability to execute its growth plan and meet revenue and sales
estimates. These statements involve known and unknown risks and uncertainties,
including, but are not limited to, 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. Solar Power, Inc. 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 law.

SOLAR POWER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except for share data)

As of As of
September 30, 2009 December 31, 2008
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 9,305 $ 5,915
Accounts receivable, net of allowance for doubtful accounts of $275 and $49 at September 30, 2009 and December 31, 2008, respectively 8,376 3,010
Costs and estimated earnings in excess of billings on uncompleted contracts 13,462 294
Inventories, net 5,930 4,665
Prepaid expenses and other current assets 1,026 771
Restricted cash 527 527
Total current assets 38,626 15,182

Goodwill 435 435
Restricted cash 273 -
Property, plant and equipment at cost, net 1,561 2,178
Total assets $ 40,895 $ 17,795
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 17,175 $ 3,916
Accrued liabilities 4,316 3,058
Income taxes payable 248 248
Billings in excess of costs and estimated earnings on uncompleted contracts 81 160
Loans payable and capital lease obligations 331 342
Total current liabilities 22,151 7,724
Loans payable and capital lease obligations, net of current portion 65 311
Deferred revenue - 125
Total liabilities 22,216 8,160

Commitments and contingencies - -

Stockholders' equity
Preferred stock, par $0.0001, 20,000,000 shares authorized,
none issued and outstanding at September 30, 2009 and December 31, 2008 - -
Common stock, par $0.0001, 100,000,000 shares authorized
50,020,826 and 37,771,325 shares issued and outstanding at September 30, 2009 and December 31, 2008, respectively 5 4
Additional paid in capital 39,654 28,029
Accumulated other comprehensive loss (222 ) (222 )
Accumulated deficit (20,758 ) (18,176 )
Total stockholders' equity 18,679 9,635
Total liabilities and stockholders' equity $ 40,895 $ 17,795

SOLAR POWER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for share data)

For the Three Months Ended For the Nine Months Ended
September September September September
30, 2009 30, 2008 30, 2009 30, 2008
(unaudited) (unaudited) (unaudited) (unaudited)

Net Sales $ 22,280 $ 19,629 $ 38,475 $ 35,509
Cost of goods sold 17,143 17,762 31,150 32,226
Gross profit 5,137 1,867 7,325 3,283

Operating expenses:
General and administrative 2,105 2,134 6,541 6,808
Sales, marketing and customer service 1,145 558 2,780 1,749
Engineering, design and product management 228 128 626 396
Total operating expenses 3,478 2,820 9,947 8,953

Operating income (loss) 1,659 (953 ) (2,622 ) (5,670 )

Other income (expense):
Interest expense (6 ) (34 ) (34 ) (108 )
Interest income 1 15 5 120
Other income, net 84 - 72 5
Total other income (expense) 79 (19 ) 43 17

Income (loss) before income taxes 1,738 (972 ) (2,579 ) (5,653 )

Income tax expense - - 3 3

Net income (loss) $ 1,738 $ (972 ) $ (2,582 ) $ (5,656 )

Net income (loss) per common share
Basic $ 0.05 $ (0.03 ) $ (0.07 ) $ (0.15 )
Diluted $ 0.04 $ (0.03 ) $ (0.07 ) $ (0.15 )

Weighted average number of common shares used in computing per share amounts
Basic 38,994,000 37,740,368 38,286,787 37,671,794
Diluted 39,201,234 37,740,368 38,286,787 37,671,794

Solar Power, Inc.
Stephen C. Kircher, CEO, 916-745-0900
or
Clean Tech IR, Inc.
Brion Tanous, 310-541-6824
btanous@cleantech-ir.com

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