CALGARY, ALBERTA--(June 2, 2015) - Eguana Technologies Inc. ($EGT:CA) ("Eguana" or the "Company"), a leading supplier of power control and conversion solutions for distributed energy storage systems, today announced that it has filed its Interim Consolidated Financial Statements for the 6 Months ending March 31, 2015, along with Management's Discussion and Analysis thereof. The Consolidated Financial Statements and the Management Discussion and Analysis thereof are available on SEDAR at www.sedar.com, and on the Company's website at www.eguanatech.com.
Product sales revenues for the first half of the 2015 fiscal year totaled $3.1 million up from $885,706 for the same period in 2014. Increased product sales revenue primarily reflected continued growth in demand for residential self-consumption in Europe. Product sales revenue for Q2 was $1.55 million, and the current Quarter is tracking to approximately a 30% quarterly increase in revenues, with visibility on continued growth for the balance of the calendar year.
Eguana has partnered with industry giant LG Chem to market a 5kW/10kWh outdoor rated Home Battery for North American and other markets. The LG Chem AC Battery will be rolled out this month at the Grid Edge conference June 23-25 in San Diego, California.
Eguana also announced that it is partnering with a Tier 1 Lithium-ion battery manufacturer to develop a 15kW/30kWh outdoor rated AC Battery for the commercial demand charge reduction market in the U.S. The Company is targeting the end of this summer for roll out of this product.
One-time expenses incurred during the first half of the fiscal year reduced standard gross margins from 7% to negative 23%. The one-time costs consist of retrofits to products shipped in FY 2014 tied to faulty magnetic components delivered in FY 2014; and to expediting costs incurred in the period with respect to these components to ensure a steady production ramp to meet customer demand. The Company addressed quality issues with the magnetic components during Q4 2014 and products shipped since that time are showing a return rate of less than 1/2 of 1% and a return to single digit margins in the current Quarter.
During the period Eguana restructured its component supply chain. These changes will improve component quality and reduce manufactured cost by approximately 12% by the end of the September Quarter with further cost reductions negotiated to occur before year end. At the same time, the Company has negotiated price increases which come into effect during the current and next Quarters. In combination, the changes should increase gross margins to more than 20% by the end of Q4.
A conference call will be held on Tuesday June 2 at 4:30 pm EST to allow management to discuss these results with interested investors. Those interested in participating should dial 416-340-2217 or toll free at 1-866-696-5910. The pass code for this event is 4886225. Please note that the conference call replay will be available until June 19th by dialing or toll free at 1-800-408-3053. The pass code for the replay is 7116385.
About EGUANA TECHNOLOGIES, INC:
Headquartered in Calgary, Alberta, Canada, Eguana Technologies Inc. designs and manufactures intelligent, high performance, low-voltage power control and conversion solutions for smart grid and micro-grid energy storage systems. Eguana's patented software configurable platform enables energy storage systems to optimize the lower cost, modularity and safety advantages of low voltage advanced battery technologies at a much lower cost, and with greater design flexibility than is possible with conventional power electronics solutions.
The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, we include: statements concerning expected revenues in the next fiscal Quarter; statements concerning growth in the European solar self-consumption market during the current calendar year; statements concerning margins in the current Quarter and the balance of the current calendar year and statements concerning the value of our power control and conversion systems.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. Readers are also directed to the Risk Factors section of the Company's Financial Statements and MDA for the Fiscal Period ending September 30 2014 which may be found on its website or at sedar.com The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Eguana Technologies Inc.
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