Solar provider Solar3D reports that its SUNworks division posted record sales, pre-tax profits, and backlog in May. Solar3D plans to continue growing and is actively seeking additional acquisitions to enlarge the SUNworks division.
We hear a lot about large solar companies like Sunrun, Vivint, and SolarCity expanding — both geographically and in terms of partnerships and vertical integration. But what about the rest of the market?
While solar power has been growing exponentially, both the commercial and the residential segments are still largely untapped. That means there’s room for a number of players, and it’s not just the top few that are growing.
Solar provider Solar3D, Inc. (OTCQB: SLTD), which makes a proprietary high-efficiency solar cell, is proof of this. The company has just reported that its SUNworks division posted record sales, pre-tax profits, and backlog in May.
“As we expected when we acquired SUNworks, the company’s management team has done an outstanding job of driving sales and profits. Recognized revenue for the month of May alone exceeded $2.6MM. That means that between April and May, we have achieved sales of over $4MM, a level equal to nearly half the sales of the entire year of 2013. Also, SUNworks sales have been very profitable with with pre-tax profits in May of over $450K. We believe that our strategy of profitable growth at SUNworks is the best approach for solid long term sustainability,” said Jim Nelson, CEO of Solar3D, in a statement.
Abe Emard, CEO of SUNworks, added, “Not only are we realizing substantial results now, but our combined residential and commercial contracted backlog is well over $10MM and we anticipate adding to it substantially in the next few weeks.”
Solar3D completed the acquisition of SUNworks in January this year, initiating what Nelson calls an aggressive entry into the solar systems market. SUNworks not only penetrated the new homes market but has even offered an option for homeowners to purchase solar systems, in addition to the standard leasing option for new homes. This is an example of how providing various offerings can fuel growth for solar companies.
For Solar3D, organic growth alone is expected to result in a substantially larger company this year. Solar3D is also actively seeking additional acquisitions to enlarge the SUNworks division.
On the manufacturing side, Solar3D will continue to develop the Solar3D cell, as it refines the final lab version of the new technology.