Day4 Energy Inc. has reported a $0.3 million gross loss for the fourth quarter of 2011, and a full-year gross loss of $7.6 million. Fourth-quarter revenues totaled $9.4 million – an 84% drop from the same period in 2010 and 35% drop from the prior quarter.
‘2011 was a very challenging year for the entire PV industry,’ says George Rubin, president and CEO. ‘Unfortunately, we are not immune to these challenges. â�¦ What is further concerning is that the outlook for 2012 appears to be equally volatile.’
In its financial report, the company says that although it continues to see customer demand for its Day4 DNA PV modules, ‘depressed’ market prices have eroded profit margins. The company has not yet reached profitable operation.
‘On the manufacturing equipment side of the business, we continue to lack visibility into the timing of the recovery in the PV equipment market,’ the company says. Therefore, Day4 Energy plans to take the following actions, as described in its financial report:
– Take advantage of the intangibles, such as customer relationships and technical knowledge gained through the Day4 EcoTec business, within Day4 Energy's R&D and engineering operations in Canada;
– Allow Day4 ecoTec to pursue otherwise non-core but revenue-generating opportunities in the automotive industry; and
– Evaluate the possibility of selling all or part of the equity ownership in its equipment manufacturing activities to a third party.
‘Recently, we have secured interest from a company controlled 100 percent by a director of Day4 Energy Inc. to acquire a 100 percent share ownership of Day4 ecoTec,’ Day4 Energy adds. ‘If such a sale is completed, it would help to significantly reduce our monthly operating costs as well as our long- and short-term debt.’ The company has also entered into a non-binding letter of intent with Ever Energy to combine operations.