PowerSecure collapses on Q1 miss, bleak guidance, cash burn

|About: PowerSecure International, Inc (POWR)|By:, SA News Editor

On top of badly missing Q1 estimates, PowerSecure (POWR -61.7%) is guiding for Q2 revenue of $55M-$60M and EPS of -$0.09 to -$0.15, far below a consensus of $77.6M and $0.15. Revenue is expected to grow to $62M-$67M in Q3 (below an $89.3M consensus), and $67M-$72M in Q4.

PowerSecure ended Q1 with $38.2M in cash, down sharply from $50.9M at the end of Q4. Term debt and capital leases total $26.1M.

Backlog is currently at $225M, down from $248M at the time of the March 10 Q4 report. Gross margin fell to 20.9% in Q1 from 30.6% a year ago.

The company says it "mis-timed actions to shift resources to more profitable customers," and is seeing "protracted timing in converting larger distributed generation project opportunities from [its] pipeline."

Silver Spring Networks, another technology provider to utilities, crashed yesterday after providing weak guidance blamed on delayed deal closings.

Q1 results, PR