Sunworks falls almost 30% after reporting Q1 results impacted by weather
Sunworks reported a Q1 net loss per share of 17c per share versus a net loss of 7c per share in 1Q18 and a one analyst estimate for a loss of 3c per share in Q1. Total revenue for the quarter was $9.3M compared to $13.4M last year. Gross profit was a negative $0.6M compared to gross profit of $2.4M. As expected, and previously conveyed, first quarter 2019 revenue and profitability were negatively impacted by seasonally rainy conditions in California, which prohibited installation activity for many of the larger agriculture and commercial projects. In addition, during the first quarter of 2019, the company experienced a number of negative impacts to gross profit including, unexpected rework on projects leading to cost overruns and a number of customer concessions for construction delays. The company also incurred expenses in the quarter for the renegotiation of terms and the cancellation of several of the older projects with unfavorable provisions agreed to in prior years. Chuck Cargile, Sunworks' Chief Executive Officer said, "We continue to take steps to streamline our business and enhance our operations. In the first quarter, we combined our ACI and Public Works operational teams. This allows our more effective Public Works operations team to now lead our commercial efforts. This will result in cost savings from a personnel standpoint as well as ensure a more focused efficient execution of projects in backlog." Shares of Sunworks are down 28% or 35c to 91c per share in after-hours trading.