"Whereas for the third quarter of 2013 revenue was posted at $157,000, revenue in the fourth quarter of 2013 was $757,000, nearly a five-fold sequential increase. Further, after completing our supplier diversification and cutting costs, including our recent move to a lower cost location in January 2014, the Company's expected breakeven on sales is far lower than at any time in its history," commented Margaret Randazzo, CEO of Andalay Solar, Inc.
Mark Kalow, chairman of Andalay Solar's Board of Directors, also commented, "This news, coupled with a commitment from our long-time investors, we believe puts us in a desirable position going into 2014. Our focus is now on increasing the top line growth of the Company as we target achieving cash flow break-even and profitability over the next several quarters. We are also pleased with our agreement with ASC Recap to pursue the purchase of prior debt owed to four large creditors of which one has already been purchased and settled in exchange for the issuance of certain shares of the Company's common stock."
Details of the agreement with ASC Recap LLC, which is subject to court approval, are provided in the Company's Form 8-K filed on January 28, 2014.
Net revenue for the quarter ended December 31, 2013 was $757,000, compared to $753,000 in the fourth quarter of 2012, and $157,000 in the third quarter of 2013.
For the year ended December 31, 2013, the Company reported net revenue of $1.1 million, compared to $5.2 million in 2012. The decline in full year was due to limited inventory levels during the first nine months of 2013 due to supplier relationship issues.
The Company began receiving product from a new supplier beginning in September 2013 resulting in significant revenue growth during the fourth quarter of 2013 compared to the prior quarters of 2013.
The Company plans to announce its full financial results for the fourth quarter and year ended December 31, 2013 in early March 2014.
Thousands of Andalay Solar power systems have been installed across the U.S., Canada, Mexico, Caribbean and South America. The Company sells its products to solar installers and do-it-yourself customers through distribution partnerships, its dealer network and retail outlets.
Andalay Solar's Instant Connect AC Solar Power Systems are currently available and shipping to customers.
