BURNABY, BC, March 30, 2012 /PRNewswire/ - Day4 Energy Inc. (TSX: DFE), a leading global provider of solar photovoltaic (PV) products and solutions, today reported operating results for the fourth quarter and full year 2011.
"2011 was a very challenging year for the entire PV industry. Unfortunately we are not immune to these challenges. Sudden adverse changes in government policies towards solar energy in some of the key markets have combined with global PV hardware over-supply to create perhaps the most difficult PV market since the global financial crisis of late 2008. What is further concerning is that the outlook for 2012 appears to be equally volatile." noted George Rubin, President and CEO of Day4 Energy. "Despite extreme near-term challenges, we believe, our industry is well underway towards becoming a viable alternative to conventional sources of electricity. We further believe that our technology has a role to play in this transition and remain committed to our long-term objective of establishing Day4 Electrode as an industry platform for manufacturing of PV cells and modules." concluded Mr. Rubin.
Q4 and FY 2011 FINANCIAL RESULTS
Worldw ide Product Revenues Fourth quarter revenues of $9.4M million declined from $57.7M, or 84%, from the same period in 2010 and by $5.1 or 35% from the prior quarter. Total revenue for fiscal 2011 was $66.1 million, a decrease of $100.6 million or 60% compared to the previous yearGross Marg ins Gross loss was $0.3 million (3%) for the fourth quarter 2011 as compared to a gross loss of $3.0 million (20%) in the prior quarter and a gross margin of $4.7 million in the fourth quarter 2010. Full year gross losses for 2011 were $7.6 million or 12% compared to gross margins of $9.0 million or 5% in 2010. The negative margins in 2011 were due to several factors including decreasing sales prices, downward inventory adjustments to market and fixed charges from our outsourced manufacturer