Sunworks, Inc. said Jan. 8 it expects a decline in its fourth quarter revenues, gross margin and adjusted EBITDA, compared to the third quarter, due to delayed permits and approvals linked to PG&E Corp.
"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," Sunworks CEO Chuck Cargile said in a Dec. 8 news release. "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."
The company also noted, however, that it secured $11.5 million in new commercial projects in agriculture, commercial, industrial, public works and residential and residential markets. The latest contracts bring total contracts in the fourth quarter of 2019 to more than $20 million, Sunworks' biggest quarter in the last seven quarters, according to the company.
"We closed 2019 with momentum on the new orders front and enter the year with an estimate of more than $44 million of [agriculture, commercial and industrial] and Public Works backlog scheduled for installation in 2020. Included in the total was a $6 million project for an agricultural producer in Nevada," Cargile said.