Sunworks Wins $11.5M In New Commercial Projects In December 2019; Says Bookings Growth Is Encouraging But Expects Sales, Gross Margin And Adj. EBITDA To Decline Sequentially From Q3

Sunworks, Inc. (NASDAQ:SUNW), a provider of solar power solutions for agriculture, commercial and industrial (ACI), public works and residential markets, today announced that the company has been awarded commercial

Benzinga · 01/08/2020 13:15

Sunworks, Inc. (NASDAQ:SUNW), a provider of solar power solutions for agriculture, commercial and industrial (ACI), public works and residential markets, today announced that the company has been awarded commercial project wins of $11.5 million in new commercial projects during the final month of 2019.
 

The company noted that more than 40 new ACI contracts were signed in December bringing the fourth quarter new bookings total to more than $20 million – marking the highest level of new project wins in seven quarters.

Chuck Cargile, Sunworks Chief Executive Officer, noted, "We closed 2019 with momentum on the new orders front and enter the year with an estimate of more than $44 million of ACI and Public Works backlog scheduled for installation in 2020. Included in the total was a $6 million project for an agricultural producer in Nevada. This solar system will substantially reduce the company's utilities costs associated with field irrigation and protect against future utility rate increases. The remaining project wins vary in size and scope and reflect the success of the year-end push by our sales team."

Mr. Cargile continued, "Our bookings growth is encouraging. However, we are expecting our fourth quarter 2019 revenue, gross margin and Adjusted EBITDA to decline sequentially from the third quarter of 2019, primarily as a result of delays related to PG&E approvals and permits. Prior to these delays, our expectations were that revenue and gross margin would increase sequentially from the third quarter of 2019 and that our Adjusted EBITDA would be positive. Importantly, we anticipate lower sequential operating expenses in the fourth quarter of 2019, and we expect our cash balance as of December 31, 2019 to be higher than the third quarter of 2019."