Day4 Energy starts turnaround on back of record fourth quarter revenue

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Struggling PV module start-up Day4 Energy saw fourth-quarter revenue reach CDN$36.6 million, an increase of 175% from the prior quarter and 120% increase over the same period in 2008. Full-year revenues for 2009 were CDN$60.0 million, compared to CDN$76.8 million for the prior year. The company was forced to reduce its workforce in early 2009 and shift module production to Jabil in Poland.

“In the first months of the year, market demand for PV modules plummeted and product average selling prices deteriorated rapidly,” noted George Rubin, president of Day4 Energy. “Management responded to these challenges by implementing aggressive cash preservation measures, companywide cost reduction and accelerated transition to the outsourced manufacturing model. We ended 2009 with the strongest quarter in the history of our company.

“Strong sales, superior cost structure of our outsourced manufacturing as well as recovery in accounts receivable previously accounted for as bad debt expense contributed to the achievement of one of the most significant milestones in our limited operating history – EBITDA profitability during the fourth quarter of 2009. Finally, we ended the year with a cash position of $27.2 million, 5% higher than at the end of 2008.”

The company reported a gross loss of CDN$8.5 million for 2009, compared to CDN$7.2 million in 2008. The higher gross loss was said to be due to inventory writedowns of CDN$9.8 million and period costs due to low capacity utilization of CDN$4.1 million.

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