Sunworks Reports Fourth Quarter and Full-Year Results

ROSEVILLE, CA–(Marketwired – March 29, 2017) – Sunworks, Inc. (NASDAQ: SUNW), a provider of solar power solutions for commercial and residential markets, today announced financial results for the fourth quarter and full year ended December 31, 2016.


  • Revenue of $86.4 million, up 61%, compared to $53.7 million in the prior year
  • Gross margin of 25.6% of total revenue compared to 31.7% in the prior year
  • Operating loss of $8.0 million compared to operating income of $2.4 million in the prior year
  • Net loss of $9.4 million, compared to net income of $1.1 million, in the prior year
  • Cash and cash equivalents of $11.1 million as of December 31, 2016, compared to $12.0 million last year
  • Backlog of $48.5 million as of December 31, 2016, compared to $47.5 million at December 31, 2015
  • Q4 2016 SUMMARY:
  • Revenue of $18.4 million, up 6% compared to $17.3 million in the year-ago quarter
  • Gross margin of 12.4% of total revenue compared to 36.5% in the year-ago quarter
  • Operating loss of $3.6 million compared to operating income of $1.5 million in the year-ago quarter
  • Net loss of $3.7 million, compared to net income of $1.2 million, in the year-ago quarter

Jim Nelson, Sunworks’ Chief Executive Officer commented, “I am proud of much of what we accomplished at Sunworks in 2016. Year over year revenue growth of 61% significantly outpaces the industry growth rate. In addition, we broadened our addressable market primarily for commercial and agriculture opportunities and have expanded into more target-rich regions — all with the goal of continuing our rapid growth. The success of our efforts is reflected not only in the top-line growth, but also in the all-time record backlog that we bring into 2017. All of these factors lead us to be optimistic about the future.”

Mr. Nelson continued, “The significant growth and aggressive investment in our initiatives challenged our organization, particularly in the second half of the year. We experienced growing pains with some of our internal processes in attempting to keep pace with the rapid acceleration of the front-end of the business. The rainy weather during our normally busy fourth quarter negatively impacted our revenue and put downward pressure on our financial results. These factors, among others created an unexpected operating loss in the fourth quarter. Some of these losses, as explained in our 10-K filing with the Securities and Exchange Commission, were non-cash adjustments that we do not expect to reoccur in 2017. In addition, we have made and are making changes to improve our back-office processes, strengthened our team, and streamline and focused our investment initiatives. We will continue to make adjustments and improve our business to ensure that we leverage our fast-growing sales into faster growing cash and profitability.”


  • Management expects full year 2017 revenue to increase more than 30% versus 2016 and anticipates Sunworks will be profitable for the full year.
  • Management expects backlog at the end of Q1 2017 to increase versus both the prior year Q1 2016 backlog and the prior quarter backlog — providing additional optimism for continued growth.


  • The company generated approximately $1.8 million of cash from operating activities for the full year of 2016 compared to $1.3 million for the prior year and finished the year with $11.1 million in cash and cash equivalents.
  • As of December 31, 2016, the Company had $2.3 million of debt outstanding.


Order backlog at December 31, 2016 was $48.5 million, up 2% compared to $47.5 million on December 31, 2015. Backlog is based on orders expected to be delivered during the next 12 months.

Q4 2015 Q4 2016 % CHANGE
Backlog in Dollars ($M)
Beginning sales backlog $ 29.5 $ 42.7 45 %
Total new sales $ 35.2 $ 24.2 -31 %
Total earned revenue $ 17.2 $ 18.4 7 %
Ending backlog $ 47.5 $ 48.5 2 %
Backlog in Megawatts (MW)
Beginning sales backlog 9.5 13.8 45 %
Total new MW sales 11.7 8.1 -31 %
Total MW installed 5.7 6.1 7 %
Ending backlog 15.5 15.8 2 %


Management will host a conference call to discuss these results today, Wednesday, March 29 at 10:00 a.m. ET. To access the call, please dial 1-(866)-682-6100 (toll free) or 1-(862)-255-5401 (International). The conference call will also be broadcast live over the Internet, which can be accessed via the Investor Relations section of Sunworks’ web site at All participants should call or access the website approximately 5 minutes before the conference begins.

The webcast will be available for replay for at least 90 days. A telephonic replay of this conference call will also be available by dialing 1-877-481-4010 (toll free) or 1-919-882-2331 (international) until 11:59PM ET on May 12, 2017.


Founded in 1983, Sunworks, Inc. has emerged as a premier provider of solar power solutions for both consumers and businesses. We’re committed to quality construction practices that always exceed industry standards and uphold our ideals of ethics and safety.

Today, Sunworks continues to grow its presence, expanding nationally with regional and local offices. We strive to consistently deliver high quality, performance oriented solutions for the agriculture, commercial, federal, public works, residential, and utility industries. Our dedication to excellence is reflected in our 25-year warranty, a benchmark that we stand by in order to support our customers above and beyond their expectations.

Sunworks fields a diverse, seasoned workforce that includes distinguished veterans who are devoted to providing the very best customer experience. All of our employees, from technicians to executives, uphold our company’s guiding principles each day. Sunworks is a member of the Solar Energy Industries Association (SEIA) and is a proud advocate for the advancement of solar power. For more information, visit


Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These risks include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products, and prospects for sales, failure to commercialize our technology, failure of technology to perform as expected, failure to earn profit or revenue, higher costs than expected, persistent operating losses, ownership dilution, inability to repay debt, failure of acquired businesses to perform as expected, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

2016 2015
Sales $ 86,421 $ 53,713
Cost of Goods Sold 64,311 36,664
Gross Profit 22,110 17,049
Operating Expenses
Selling and marketing expenses 12,330 9,344
General and administrative expenses 11,434 5,094
Stock based compensation 6,041 136
Research and development cost 53
Depreciation and amortization 323 51
Total Operating Expenses 30,128 14,678
Loss/Income before Other Income/(Expenses) (8,018 ) 2,371
Other Income/(Expenses)
Interest and other income 10
Other expense (329 ) (3 )
Gain (Loss) on change in fair value of derivative liability 69
Interest expense (1,033 ) (1,391 )
Total Other Income/(Expenses) (1,362 ) (1,315 )
(Loss) Income before Income Taxes (9,380 ) 1,056
Income Tax Expense
Net (Loss) Income $ (9,380 ) $ 1,056
Basic $ (0.46 ) $ 0.06
Diluted $ (0.46 ) $ 0.05
Basic 20,227,239 16,966,921
Diluted 20,227,239 23,709,210
AS OF DECEMBER 31, 2016 AND 2015
DECEMBER 31, 2016 DECEMBER 31, 2015
Current Assets
Cash and cash equivalents $ 11,069 $ 12,040
Restricted cash 37 37
Accounts receivable, net 9,665 7,023
Inventory 3,394 1,269
Costs in excess of billings 4,307 2,130
Other current assets 117 220
Total Current Assets 28,589 22,719
Property and Equipment, net 1,674 745
Other Assets
Other deposits 53 36
Goodwill 11,364 11,364
Total Other Assets 11,417 11,400
Total Assets $ 41,680 $ 34,864
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable and accrued liabilities $ 12,979 $ 5,033
Billings in excess of costs 4,997 1,990
Customer deposits 64 394
Loan payable, current portion 218 2,028
Acquisition convertible promissory notes, net of beneficial conversion feature
of $807 and $1,767, respectively 959 750
Convertible promissory notes 850
Total Current Liabilities 19,217 11,045
Long Term Liabilities
Loan payable 496 232
Convertible promissory note 654
Warranty liability 116 45
Total Long Term Liabilities 1,266 277
Total Liabilities 20,483 11,322
Shareholders’ Equity
Preferred stock, $.001 par value;
5,000,000 authorized shares;
Preferred Stock Series B, 1,506,024 and 1,506,024 issued and outstanding,
respectively 2 2
Common stock, $.001 par value;
1,000,000,000 authorized shares;
20,853,921 and 18,320,535 shares issued and outstanding, respectively 21 18
Additional paid in capital 70,317 63,285
Accumulated deficit (49,143 ) (39,763 )
Total Shareholders’ Equity 21,197 23,542
Total Liabilities and Shareholders’ Equity $ 41,680 $ 34,864

Rob Fink/John Roginski
Hayden IR
646-415-8972 / 570-569-2479

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