Sunworks Spikes After Reporting $10 Million of 3rd-Quarter Deals

Sunworks shares jumped after the solar-power solutions company said it received $10 million of new orders in the third quarter.
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Sunworks  (SUNW) - Get Report shares jumped on Wednesday after the solar-power solutions company said it signed $10 million of commercial and agricultural projects in the third quarter.

The orders come from 19 current and new customers, amounting to more than 4.4 megawatts for installation, the company said in a statement.

The projects for the Roseville, Calif., company include:

-- $3.2 million for modular-home sites in Northern and Southern California;

-- in agricultural projects, $1.8 million for a follow-on project from a large customer and $1.4 million from a new customer, and, 

-- $700,000 for a follow-on sale in the Northeast for Cibao Meat Products, which will build a parking canopy that will include 8 EV charging stations.

Much of Sunworks' agriculture, commercial and industrial activity "has been on hold" since March amid the uncertainty stemming from the covid-19 pandemic, Chairman Chuck Cargile said in the statement.

“The most notable volume of third-quarter sales were booked in the last week of September, and we are optimistic this momentum will continue into the fourth quarter as we signed two more large projects in the first week of October,” he said. 

“The increased sales activity positions us well for 2021.”

"The momentum is important," Cargile said, as Sunworks moves to close its pending combination with Peck Co. Holdings  (PECK) - Get Report, the South Burlington, Vt., solar-power engineering and construction company.

In August the companies agreed to an acquisition deal in which Peck would issue 0.185171 share for each Sunworks share. Sunworks holders would get 36.5% of the new combined company.

The companies have said the deal gives them coast-to-coast presence in the U.S. and creates opportunities for $6 million of annual cost savings.

If Sunworks and Peck had been combined on June 30, their backlog would have totaled $76.8 million, they said.

The boards of both companies have approved the deal. It is subject to conditions including approval by the holders of both Sunworks and Peck. The companies hope to close the deal in the fourth quarter.

At last check Sunworks shares leaped 45% to $4.06. Peck shares jumped 60% to $11.62.