US PV installer RGS Energy has been forced to instigate further restructuring reforms in response to reporting continued losses in the fourth quarter of 2014.
The company said that it planned to replace its offices, warehouses, field sales and construction teams in California with call centre and sales outsourced, while using its authorized third party contractors for PV installations.
As a result, RGS Energy expects to reduce employee headcount by 30%, around 100 jobs over the next few months, according to the company.
The company expects restructuring charges to between US$140,000 and US$240,000, with a non-cash impairment charge for leasehold improvements of approximately US$70,000.
“The foundation of our new operational model focuses on our core strengths of engineering, e-Sales, operations management and leasing” said, Dennis Lacey, CEO of RGS Energy. “We expect this effort to streamline our operations and lower our fixed operating costs, as we leverage our recently strengthened financial position to address an over $50 million installation backlog.”
RGS Energy had reported preliminary, unaudited results in February with revenue from continuing operations around US$18 million, similar to the prior-year quarter.
However, the company reported an operating loss in excess of US$13 million, which includes an impairment charge for the discontinued commercial segment of its business under, Sunetric of US$11 million. The net loss was said to be approximately US$16 million in the fourth quarter and previously reported a net loss of US$41 million for the first nine months of 2014.
RGS Energy rushed to raise new capital in late February 2015 with the issue of new shares on NASDAQ to provide some of its working capital needs to continue to install its backlog of projects that would improve liquidity in the near-term.
The company raised proceeds of around US$3.5 million with plans to issue further shares to raise a further US$7 million.