The Company expects its net revenue to be in the range of $34 to $36 million for quarterly period ended June 30, 2014, compared to $20.7 million for the quarterly period ended June 30, 2013. The Company expects its net loss to increase significantly for the quarterly period ended June 30, 2014. As a result of its negative financial performance, the Company is evaluating the fair value of its goodwill and other assets as compared to their carrying values. Because the Company has not yet completed its purchase accounting for its business acquisitions done earlier this year, the Company has not been able yet to complete this impairment evaluation, but anticipates it will record an impairment charge in the range of $18 to $20 million. The Company estimates that its net loss for the quarterly period ended June 30, 2014 will be $20 to $22 million, compared to $2.9 million for the quarterly period ended June 30, 2013.
that's no real loss - they have the upfront costs but harvest the cash over the lifetime of the leasing arrangement. That's just the way leasing works. RGSE leases nothing, they just do project work so far. And they lose REAL money.
nice one - while revenues will come in significantly higher than the one analyst estimate (most likely due to the inclusion of 6 weeks of Sunetric revenues) the latest acquisition spree fires back on the company quite rapidly. Obviously legacy projects brought heavy losses and the need to impair the ENTIRE goodwill of ALL acquisitions made within the last twelve months. The charge will eat up the remaining shareholder equity on the balance sheet and leave the company in dire straits.
They had me convinced of the reason for the lose in the first quarter (bad weather). I think most were expecting 2nd quarter would be a big improvement with all the back log etc.But it obvious they don't have it together.