US installer Real Goods Solar (RGS) has reported a small drop in revenue for Q2 2013 compared to the same period last year despite an increase in deployments.
Quarterly revenue for 2013 was US$20.7 million, down 3.3% on Q2 2012’s US$21.4 million.
“The decrease in the average selling price of solar energy systems more than offset the increase in the company's deployed solar energy systems versus the same year-ago periods,” read a statement released by the company.
Profits fell from US$5.3 million in Q2 last year to US$4.8 million. The gross margin fell from 24.8% to 23.1% with falling prices again to blame.
Despite the results, RGS is confident about its future following two recent acquisitions.
“Last week, we announced signing a definitive agreement to acquire Mercury Solar Systems, a premier east coast solar company that brings both talent and complementary markets to our commercial division, RGS Energy,” said Sam Mofid, CEO of RGS. “Upon closing, we expect the all-equity transaction to strengthen our balance sheet, as well as adding approximately US$10 million of cash and no debt.
“We also showed our commitment to growing our residential market share and capabilities by acquiring Syndicated Solar, a fast-growing and innovative residential solar player.
“These two acquisitions are intended to expand our nationwide presence, backlog and sales capabilities in new and existing solar states. We expect the acquisitions to advance our position as a leading downstream solar solutions provider and set the stage for future growth and expansion,” added Mofid.