Due to the Trump administration's tariffs and quotas on imported panels, Sunworks Inc. said it expects its 2017 revenues to decrease about 10% from $86.4 million in 2016.
However, the company's fourth-quarter 2017 revenues are expected to be higher than the $18.4 million recorded in the prior-year period. Its net loss for the fourth quarter is also expected to be less than the $3.7 million loss in the corresponding period of 2016.
Fourth quarter "operating expenses will be approximately 30% lower than the prior year fourth quarter," Sunworks CEO Chuck Cargile said in a March 8 release, adding, "We have made cuts in our discretionary spending, reduced the size of our board of directors and streamlined our management team, all while maintaining our ability to improve our business and serve our customers."
The company's business restructuring also reduced 2017 operating expenses by approximately $10 million.
Full-year 2017 gross margin is expected to be lower, due primarily to many older projects that were completed in the second half of 2017 at profit levels well below original expectations.
Cargile said that management is "optimistic" about 2018 since new projects booked in the first quarter of 2018 are expected to exceed $30 million, with the majority expected to result in installation revenue in 2018.
The company also expects to increase 2018 full year revenues by up to 20% year-over-year.
