* Revenue of $23.0 Million

 * Return to Profitability

BOULDER, Colo., Nov. 4, 2009 (GLOBE NEWSWIRE) -- Real Goods Solar, Inc. (Nasdaq:RSOL), a leading residential solar energy integrator, today announced results for its third quarter ended September 30, 2009.

Revenue for the third quarter of 2009 increased 122.3% to $23.0 million from $10.3 million recorded in the same period last year, primarily due to organic growth and acquisitions.

Gross profit increased to $5.0 million, or 21.8% of revenue, for the quarter from $2.8 million, or 27.2% of revenue, in the comparable period last year. The decrease in gross margin percentage primarily reflects an increased mix of lower margin commercial installations during the third quarter of 2009. In the fourth quarter gross margin is expected to return to the mid-twenties.

Operating expenses as a percent of revenue decreased to 20.7% for the quarter, from 31.8% in the comparable period last year. This decrease is partially a reflection of the significant fixed cost component of the business and the available leverage as revenues scale. Additionally, the lower operating expenses have been a result of the significant cost savings achieved by transitioning all past acquisitions to a single set of systems and a unified brand.

Net income for the third quarter was $0.2 million, or $0.01 per share, as compared to a net loss of $0.2 million, or $0.01 per share, for the comparable period last year.

For the nine months ended September 30, 2009, revenue was $45.2 million, a 75.6% increase from $25.7 million in the comparable period last year. Net loss totaled $1.8 million, or $0.10 per share, compared to a net loss of $0.6 million, or $0.04 per share, for the nine months ended September 30, 2008.

Results for 2008 do not include Real Goods Solar's acquisition of Regrid Power on October 1, 2008 and only include two months of results for the acquisition of Independent Energy Systems on August 1, 2008. On a pro forma basis, adding the $6.0 million of revenue from acquisitions not included in the third quarter 2008 reported results, internal revenue growth was approximately 41%.

"In the third quarter we saw the return of strong demand for residential solar," commented John Schaeffer, President. "Bookings were robust throughout the quarter and we are pleased with the size of our current backlog. Revenue for the quarter showed significant growth as a result of increasing installation capacity as well as completion of the first phase of our Fremont High School project. What I am most excited to report is our return to profitability in the third quarter, a milestone that has been our highest priority."

"We really began to see the leverage in our business during the third quarter, which helped drive us to profitability," said Erik Zech, Chief Financial Officer. "While our gross margin was down from the previous quarter, we saw a decline in operating expenses as a percentage of revenue to 20.7% in the third quarter, as compared to 33.2% in the second quarter. Our balance sheet continued to strengthen during the quarter with our cash balance improving to $14.1 million."

Real Goods Solar will host a conference call tomorrow, November 5, 2009, at 8:30 a.m. PST (11:30 a.m. EST) to review the third quarter results.

 Dial-in No.: 877-941-2068 (domestic) or 480-629-9712 (international)
 Passcode: Real Goods

A replay of the call will begin approximately two hours after the end of the call and will continue until midnight EST on November 12, 2009.

 Replay number: 800-406-7325 (domestic) or 303-590-3030 (international)
 Pin: 4180678

About Real Goods Solar, Inc.

Real Goods Solar, Inc.