Electric City Reports Massive Loss
Last night, Electric City (ELC) announced 4Q 2005 results of a “net loss of $6,872,738 on sales of $4,854,772 for the twelve months ended December 31, 2005, as compared to a net loss of $5,159,362 on sales of $2,412,635 for the twelve months ended December 31, 2004.”
The one good thing about a report like that is that their sales doubled from 2004 to 2005.
That said, while we are very excited about Electric City’s technology and the potential of its Energysaver units, it does not take a rocket scientist to conclude that when you lose more than you sell, something’s got to give. The company is burning cash at a solid clip and there does not appear to be an endpoint in sight.
