SANTA BARBARA, CA--(Marketwired - January 08, 2015) - Solar3D, Inc. (SLTD), a leading solar power company and the developer of a proprietary high efficiency solar cell, today released a letter to its shareholders from company CEO Jim Nelson. The letter reads in its entirety:
Dear Shareholders,
Happy New Year!
Solar3D was fortunate to experience tremendous growth in 2014 from both a Company structure and revenue perspective, of which I would like to share a few highlights with you today as we begin 2015:
Company Acquisitions. 2014 started off quickly, as last January saw Solar3D finalize the acquisition of Roseville-based SUNworks, a solar design and installation firm, which now represents Solar3D's operating division. Since the acquisition, Solar3D has experienced strong revenue growth, as in July 2014, the Company announced second quarter sales of $7.5 million, a 600% increase over Q1 2014, resulting in operating profits for the quarter in excess of $762,000. Following the first year of integrating SUNworks into its business model, Solar3D expects to have generated over $20 million in revenue in 2014. More recently, Solar3D signed a definitive purchase agreement to acquire 100% of MD Energy (MDE), a Rancho Cucomonga-based premier provider of solar energy projects for residential, commercial, and industrial customers. Operating profitably, MD Energy is anticipated to generate approximately $7 million in revenue for 2014, with substantial growth expected for 2015. The acquisition is expected to be finalized by February 2015. Solar3D believes that MD Energy is the ideal complement to its SUNworks subsidiary, as the two companies will cover Northern and Southern California, arguably two of the hottest solar markets in the world right now.
Organic Growth. Based on our sales backlog and pipeline for the coming year, we expect to grow in 2015 at a rate similar to our growth in 2014. We have built a tremendous team of sales professionals to complement our experienced management team, and have increased the energy and resources that we utilize to focus on customer acquisition. This emphasis has begun to yield outstanding results.
Continued Growth Through Acquisition. Solar3D has identified a growth-by-acquisition model as being the most efficient model for growth. As referenced during an interview conducted with the Sacramento Business Journal, the Company believes that the consolidation of strong companies with solid management teams will create super-competitors in the specific markets in which they compete. This strategy, fueled by interest from both residential and commercial sectors, is predicated on taking advantage of a rapidly growing US solar market, which is expected to exceed 200 gigawatts by the end of 2015, a 300% increase since 2011. Along with Solar3D, MD Energy, and SUNworks, there is an abundance of solar companies headquartered in California, which leads the nation with almost 250,000 solar projects, comprised of over 2,300 megawatts installed. We will continue to pursue companies that have the potential to be great additions to the Solar3D brand. With all this in mind, the Company finds itself poised for significant revenue growth, both organic and through acquisition, especially as approximately 25% of residential and commercial rooftops in the country are deemed suitable for solar.
Potential Uplisting to Senior Exchange. In early December, Solar3D announced that it had retained Sichenzia Ross Friedman Ference LLP (SRFF), a top-ranked securities law firm as recognized by various industry tables. The NYC-based firm was retained to advise on general securities matters, as well as a potential uplisting to a senior exchange. We believe that SRFF's experience and track record as a strategic partner for growth companies seeking to achieve the next level of development will be very helpful as we continue to pursue its aggressive plan for growth in 2015.
Pursuit of a Manufacturing Partner for the 3-Dimensional Solar Cell. The Company continues to host discussions with a number of potential manufacturers to support commercialization of the new technology.
Not only does Solar3D believe in its strategy of acquiring smart companies that complement each other's skillsets, it believes in placing an emphasis on its customers. We believe that we have much more to offer than our competitors through our technical solar knowhow, and our emphasis on customizing a financing plan for our customers. We believe that falling solar costs represent cost savings for the customers, allowing more individuals and businesses to buy solar, rather than a strictly revenue opportunity for the Company. This mindset is reflected in the rapid growth of our SUNworks operating division, marking what we consider to be a fundamental shift in the solar industry.
Solar3D is committed to maintaining the momentum generated in 2014. We are confident in the leadership of our parent company and new board members, as well as the leadership of our subsidiaries and the companies we continue to pursue for acquisition. The solar industry continues to evolve, and we expect to be at the forefront for years to come.
Thank you for your continued support, we look forward to hearing from you in 2015.
Warm Regards,
Jim Nelson, CEO, Solar3D
About Solar3D, Inc.
Solar3D is a leading provider of solar power solutions and the developer of a proprietary high efficiency solar cell. The company's SUNworks division focuses on the design, installation and management of solar power systems for commercial, agricultural and residential customers. SUNworks is one of the fastest growing solar systems providers in California and has delivered hundreds of 2.5 kilowatt to 1-megawatt commercial systems and has the capability of providing systems as large as 25 megawatts. Solar3D's technology division is developing a patent-pending 3-dimensional solar cell technology to maximize the conversion of sunlight into electricity. The Solar3D Cell collects sunlight from a wide angle and lets light bounce around in 3-dimensional microstructures on the solar cell surface. The Company's mission is to further the widespread adoption of solar power by deploying affordable, state-of-the-art systems and developing breakthrough new solar technologies.
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These risks include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products, and prospects for sales, failure to commercialize our technology, failure of technology to perform as expected, failure to earn profit or revenue, higher costs than expected, persistent operating losses, ownership dilution, inability to repay debt, failure of acquired businesses to perform as expected, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
