Global Hunter’s Justin Cable Weighs in on Akeena (Nasdaq:AKNS) Q1 Results

Apr 30, 2009
Author: SCP Editor

April 30, 2009 – Analyst Comments – Global Hunters’s Justin Cable weighed in on Akeena’s (Nasdaq:AKNS) Q1 results maintaining a NEUTRAL rating on the stock.

Akeena’s Results

Akeena (Nasdaq:AKNS) reported a 37% Y/Y decline in Q1 revenue to $7.6 million, gross margins of 29.7% and a net loss of $5.1 million, or $0.17 per share. Commercial sales were $915 thousand and residential sales were $6.7 million. The company installed about 945kW for the quarter compared to 1,587kW in the same quarter last year. Cash and equivalents at March 31, 2009 were $2.9 million, and the company’s backlog was about $4.8 million. Management didn’t provide guidance, but noted that the quarterly EBITDA breakeven is about $15 million.

Cable’s Takeaways

·         Revenues missed estimates of $9.5 million and First Call consensus of $9.2 million

·         The new Andalay panels are driving higher gross margins

·         Cut FY2009 estimates in both revenues and EPS.

·         Maintain Neutral.  Given the uncertainty with the company’s balance sheet, continued cash burn, and weak environment, we maintain our Neutral rating.  We suggest staying on the sidelines until we see tangible evidence that profitability is near.