Mar. 11--LOUISVILLE, Colo. -- Louisville-based Gaiam Inc. (Nasdaq: GAIA, $3.06) on Tuesday reported that decreasing consumer spending and investment in a lower-margin solar business resulted in lower revenues and higher net losses for 2008 and the fourth quarter of last year.

The lifestyle media company also announced that its president, Lynn Powers, will add the role of chief executive officer. Powers will report to Chairman Jirka Rysavy, who previously held the position of CEO.

During the fourth quarter, Gaiam recorded a net loss of $30.3 million, or $1.26 per share, which the company attributed to non-cash charges of $27.2 million related to the write-down of goodwill and other intangible assets of its 56-percent-owned subsidiary, Real Goods Solar. In the same period last year, Gaiam had a net income of $4.2 million, or 17 cents per share.

Quarterly revenue decreased to $74.5 million, from $81.8 million.

Analysts polled by Thomson One Analytics projected earnings per share of 15 cents and revenue of $80 million.

For the year, Gaiam had a net loss of $35.6 million, or $1.46 per share, on revenue of $257.2 million. The year before, Gaiam had a net income of $8.5 million, or 34 cents per share, on revenue of $262.9 million.

Shares of Gaiam closed up 53 cents, or nearly 21 percent.

Separately, Real Goods Solar Inc. (Nasdaq: RSOL, $1.42), Gaiam's solar energy integrator subsidiary, also announced fourth quarter and full-year results on Tuesday.

Company officials called the fourth quarter "challenging" and said that Real Goods is putting a "significant emphasis" on acquisition integration -- including a reduction in work force, centralization of functions, standardization of products and processes, and a drive toward improved operational efficiencies.

It is unclear how many employees were laid off. Company officials could not be immediately reached for comment.

The company's income was affected by the impairment of goodwill and recorded a $27.4 million, or $1.53 per share, net loss on revenue of $13.5 million during the fourth quarter. In the comparable period a year earlier, the company had a net income of $24,000 and revenue of $3.5 million. Thomson One analyst estimates for the quarter included an earnings per share net loss in the range of one cent to three cents and revenue in the range of $12 million to $15 million

For 2008, Real Goods recorded a $28 million net loss, or $1.86 per share, for 2008, as compared to a net income of $100,000, or a penny per share, in 2007. Revenue increased to $39.2 million from $18.9 million, primarily due to acquisitions, company officials said, adding that the 2007 figures do not reflect acquisition gains nor costs related to being a public company.

Shares of Real Goods finished down 16 cents, or 10.1 percent on Tuesday.

Both companies' earnings reports were released after the markets closed.

-----

To see more of the Daily Camera, or to subscribe to the newspaper, go to http://www.dailycamera.com.

Copyright (c) 2009, Daily Camera, Boulder, Colo.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

GAIA,

A service of YellowBrix, Inc.