- RGS Energy (OTC:RGSE) has plunged below $0.30 after announcing it expects to report Q4 revenue of $18M from continuing ops, even with the year-ago period; the sole analyst estimate is at $23.9M.
- A $13M+ loss is expected from continuing ops, and a $16M net loss if RGS' discontinued commercial ops are included. Both figures include an $11M impairment charge for RGS' 2014 acquisition of Hawaiian solar installer Sunetric.
- RGS adds it will no longer have positive net worth thanks to the impairment charge, and thus won't meet Nasdaq listing requirements. The company is "evaluating this matter."
- RGS ended 2014 with $1.95M in cash, and $4.35M in line-of-credit borrowings. The company "needs to, an intends to, raise additional financing" to help convert its ~$55M backlog and better position itself to renew is credit line under favorable terms.
- The pre-announcement is easily overshadowing news of a partnership with East Coast rooftop solar system provider Centrosolar America. RGS expects the deal to increase its East Coast installation capacity by 1MW-2MW/month starting in Q2.