DGAP-News

Phoenix Solar AG announces Q1/2017 results

DGAP-News: Phoenix Solar Aktiengesellschaft / Key word(s): Quarterly / Interim Statement Phoenix Solar AG announces Q1/2017 results (news with additional features) 11.05.2017 / 08:30 The issuer is solely responsible for the content of this announcement. Phoenix Solar AG announces Q1/2017 results

- Group revenues increase by 40 percent versus pre-year period, EBIT below expectations, strong cash inflow

- Free order backlog increases to EUR 60.6 million

- Forecast for 2017 confirmed with revenue growth to EUR160-EUR190 million and positive EBIT of EUR1-EUR 3 million

Sulzemoos, May 11th, 2017 / Phoenix Solar AG (ISIN DE000A0BVU93), an international photovoltaic system integrator listed on the official market (Prime Standard) of the Frankfurt Stock Exchange, released its announcement today on results for the first quarter of the 2017 financial year.

In the first three months of 2017, the consolidated revenues of the Phoenix Solar Group increased by 40 percent to EUR 13.8 million (Q1/2016: EUR 9.9 million). This trend was mainly driven by the US market, the company's core business which accounted for around 90 percent of the total turnover. Further revenue growth over the coming quarters is expected due to a growing project pipeline. The total volume of the weighted global project pipeline rose from 330 MWp to 350 MWp indicative of the company's growth trend. It has to be noted, however, that a number of projects are reaching completion and will drop out of the M5 phase ("under construction") of the pipeline. Shortlisted projects (weighting factors of between 30 and 70 percent) increased further to almost 90 MWp.

The Company's total gross margin (revenues less cost of materials as percentage of revenues) was at 10.2 percent for the quarter at a satisfactory level (Q1/2016: 13.2 percent). Other operating income of EUR 0.4 million was lower than in previous quarters (Q1/2016: EUR 1.1 million), due to the sale of the Bâtisolaire project company last year, which no longer generates operating income. Post-restructuring, the Company's resources were at a very low level, thus the company increased its personnel to drive new growth. This is reflected in an increase of personnel expense of some 37 percent to EUR 3.4 million (Q1/2016: EUR 2.5 million).