Day4 Energy posts wider Q3 2011 loss

Nov 15, 2011 - Canadian solar photovoltaic (PV) products provider Day4 Energy Inc (TSE:DFE) on Monday reported a net loss of CAD 9.3 million (USD 9.1m/EUR 6.7m) for the third quarter of 2011, wider than the CAD-2.3-million loss recorded a year earlier.

In the second quarter of 2011 the company made a net loss of CAD 5.6 million.

Third-quarter revenues plunged 65% year-on-year to CAD 14.5 million, of which CAD 2.4 million was contributed by Day4 Ecotec GmbH, the equipment manufacturing business that the company bought in November last year.

Day4 Energy said the fall in sales was due to the downturn in the wider solar sector and its transition to a new business model based on technology licensing, as part of which it stopped producing its PV modules.

Gross margin swung to negative 20.4% from positive 4.2% in the corresponding quarter last year, with the company blaming the result mainly on the costs of exiting its long-term manufacturing contract and associated fees as well as additional inventory writedowns. It said that excluding those items, it would have booked a third-quarter gross loss of CAD 978,000.

(CAD 1 = USD 0.981/EUR 0.722)

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