US unit aids Phoenix Solar revival as losses shrink

System integrator Phoenix Solar boosted its revenues and cut losses during the first nine months of 2015, as it advanced its turnaround driven by a positive performance by its US subsidiary. 

Consolidated revenues grew more than fourfold from January to September to €82.2m ($75.6m) from €19.5m in the year-earlier period, mostly due to a jump in revenues from the power plants segment to €79.2m from €7m a year earlier.

Following significantly weaker business trends, especially in France and Southeast Asia, revenues in the components and systems segment only reached €3m, down from €12.5m in the first nine months of 2014.

Earnings before interest and taxes (Ebit) were a negative €3.5m during the first nine months of 2015, compared to a loss of €5.7m a year earlier.

Phoenix Solar posted a consolidated net loss of €6.4m in the nine months, compared to a net loss of €10.3m in the year-earlier period.

"Strong growth due to excellent performance and reputation, positive cash flow, positive operating results for the quarter, almost break-even on the bottom line. These are strong indications that Phoenix Solar is on track, and that we are making major progress in consolidating our turnaround," chief executive Tim Ryan said.

"With a strong record of growth and delivering on our turnaround promise in 2015, we remain optimistic for the future."

The company's executive board expects full year revenue to come in at the lower end of its €140-160m forecast range, and Ebit to range between a €1m loss and a €1m profit.