CALGARY, ALBERTA--(March 3, 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 Quarter (Q1 '15) ending December 31, 2014, 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 Q1, 2015 are slightly behind plan at $1,541,505 due to supply chain disruptions in the second half of December. Revenues for the Quarter are 67% higher than revenues for the previous Quarter ($921,639) and represent 67% of total revenues for fiscal 2014. Virtually all sales were to Europe.
European shipments are setting the stage for Eguana's entry into the much larger US residential market this Quarter. 3,300 units shipped to date with monthly shipments currently tracking higher have positioned Eguana as the market leader in power control and conversion systems for grid interactive residential energy storage.
Transitioning Bi-Direx PCS to the North American market is on plan, and the Company expects to begin shipping UL certified 5kW Bi-Direx PCS to multiple US customers during the current Quarter. Eguana is also on plan to complete development of its breakthrough AC Battery which will be paired with Tier 1 batteries for residential (5kW) applications during Q3, and for commercial (15kW) applications shortly thereafter, with good visibility on demand in both markets.
A combination of volatility in demand during product launch and a higher cost of US dollar sourced components (35% of total cost) increased cost of goods sold to Germany during Q1 to $1,577,596 resulting in negative gross margin of ($36,091). Average margins have also been negatively impacted by product mix changes and a devalued Euro over the past 20 months. Margins on the current version of the European Bi-Direx PCS will be restored through identified cost reductions in Q3, and changes to supply chain management procedures which are enabled with increased working capital. Average margins will also increase with increasing shipments to the US over the next 2 Quarters where the higher US dollar operates to the Company's advantage. The Company is on plan to release an upgraded Bi-Direx PCS for the European market in Q3.
A private placement of $5.1 million, in combination with conversion of First Preferred Shares representing a total value $14,066,138 into common shares, strengthens Eguana's balance sheet, and is a strong endorsement of Eguana's upside value potential.
A conference call will be held on Thursday March 5 at 4:30 pm EST to allow management to discuss these results with interested investors. Those interested in participating should dial 416-340-2216 or toll free at 1 800-396-7098. Please note that the conference call replay will be available until March 19th by dialing 905-694-9447 or toll free at 1 800-408-3053. The pass code for the replay is 2699708.
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 the value of the Company's energy storage inverter; and statements concerning growth potential for energy storage in European and North American markets; statements concerning the economic drivers of distributed energy storage; planned production increases of our Bi-Direx product; statements concerning potential cost reductions, and statements; and statements concerning plans to roll out new products in 2015.
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.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer