Day4 Energy has succumbed to the woes of the struggling PV industry as it posted greatly decreased revenues for fourth quarter and full fiscal year 2011. Revenue for Q4’12 declined to US$9.4million from US$57.7 million in Q4’11, while total revenue for fiscal 2011 was US$66.1 million, down US$100.6 million on full-year 2010 figures. This represents a 60% reduction in full-year revenue.
The company managed to reduce its gross losses to US$0.3 million (3%) for the fourth quarter 2011 compared to a gross loss of US$3.0 million (20%) in the third quarter of 2011. However, full-year gross losses for 2011 amounted to US$7.6 million or 12%, up from 2010’s figure of US$9.0 million or 5%.
In an attempt to address the company’s growing financial woes, management plans to reduce staff numbers by an as-yet-unspecified amount and will implement non-payroll operating costs for a total estimated amount of approximately US$5 million per annum. It has also sold off some of its existing manufacturing equipment for around CAD$4 million.
“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.