CIGS thin-film company DayStar Technologies has reported its financial results for the third quarter period ended September 30, 2010. Despite efforts to improve quarterly earnings through restructuring, net loss for Q3'10 was US$7.4 million, compared with a net loss of US$6.2 million for the same period in 2009. The company recorded no revenue for the period.
The loss included non-cash expenses of US$6.3 million. Excluding items, adjusted net loss for the quarter was US$1.1 million, reflecting the significant cost savings measures implemented by the company since Q2'10, including a reduction in workforce and decrease in occupancy costs.
DayStar incurred US$2.0 million in restructuring charges related to the impairment of certain equipment during the quarter. The company also restructured all of its existing convertible notes, resulting in the extinguishment of the original notes on the balance sheet and the recording of new notes and corresponding conversion features. These measures then resulted in a loss on extinguishment of debt of US$4.9 million during the quarter, primarily due to the fair value of the conversion features on the restructured notes.
DayStar chief executive officer Magnus Ryde said, “We are pleased with the progress we have made to significantly decrease debt and operating expenses. We were able to reduce our accounts payable and accrued expenses by US$7.8 million during the quarter and we hope to complete our debt reduction program during the fourth quarter. In addition, we have significantly reduced our operating expenses.”
“The debt and operating expense reductions should better position the company as we continue our discussions with potential strategic partners to pursue opportunities to manufacture our CIGS modules offshore. As we stated on July 22, 2010, we are pursuing partnerships to implement this strategy. Those potential partnerships, if consummated, could include joint ventures, licensing agreements, contract manufacturing agreements, a reverse merger with or an acquisition of DayStar,” concluded Ryde.