Net revenues increased 50% to $105.6 million in the first quarter, from $70.5 million for the same period last year, driven primarily by higher retail electricity sales to customers in Texas and Maryland.
Gross profit increased to $16.4 million, from $10.1 million in the first quarter of fiscal 2007. Gross profit from electricity grew to $15 million, compared to $8.4 million for the same period in fiscal 2007, due to customer growth in Texas and Maryland. Gross profit from natural gas decreased to $1.4 million, from $1.7 million in the first quarter of fiscal 2007.
Steven Boss, CEO of Commerce Energy Group, said: We are particularly pleased with the strong growth in gross profit during the quarter, given the first quarter is typically a slower quarter due to seasonality.
However, bad debt expense and higher-than-usual professional fees negatively impacted our bottom-line results. We have taken steps to address these issues, including the implementation of more stringent requirements for signing up new customers.
