After losing out to the tune of US$6.1 million or US$1.61 per share in the first quarter of 2010, DayStar Technologies has reported more positive financial results for the first quarter ended March 31, 2011. Recording net loss of US$0.4 million or US$0.05 per share, the company says it is now well positioned to capitalize on the increasing market opportunities within the renewable energy industry.
By taking significant cost saving measures throughout the year, DayStar has reduced its research and development expenses for Q1’11 down to US$0.6 million, compared with an outlay of US$2.5 million in Q1’10. The company’s selling, general and administrative expenses for the first quarter of 2011 were also reduced to just US$1.2 million compared with US$2.2 million the year before.
DayStar incurred US$850,000 of non-cash restructuring charges resulting from the extinguishment of certain liabilities, which were discarded in order to pursue strategic partnerships for offshore manufacturing. Also included in the non-cash expenses for Q1’11 was US$0.7 million for amortization of the discount on outstanding convertible notes.
The company recorded a gain on derivative liabilities of US$3.7 million related to the reduction in the conversion feature liability on the company’s balance sheet during the quarter.
DayStar chairman and interim CEO, Peter Lacey said, “During the first quarter of 2011 we continued to make significant progress in completing the restructuring of our balance sheet and further reducing our liabilities while simultaneously making strides towards a strategic partnership to implement our current business strategy. We believe we are well positioned to complete a strategic partnership and to capitalize on the increasing market opportunities within the renewable energy industry.”