16 November 2010

DayStar cuts loss as it reduces debt and expenses

For third-quarter 2010, DayStar Technologies Inc of Milpitas, CA, USA, which develops copper indium gallium diselenide (CIGS) thin-film photovoltaic products, has reported net loss of $7.4m, up on $6.2m a year ago though down on $12.2m last quarter.

Also, excluding non-cash charges of $6.3m, net loss was $1.1m, reflecting significant cost savings, including a reduction in workforce and decrease in occupancy costs (after termination in Q2/2010 of the lease on its facility in Newark, CA, following difficulty obtaining affordable capital for its build-out and operation).

The non-cash charges resulted from restructuring the balance sheet in an effort to extinguish certain liabilities while the firm pursues strategic partnerships to commercialize its product. The firm incurred $2m in restructuring charges related to the impairment of certain equipment during the quarter. Also, the firm 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), leading to a loss on extinguishment of debt of $4.9m during the quarter, due mainly to the fair value of the conversion features on the restructured notes.

“We were able to reduce our accounts payable and accrued expenses by $7.8m during the quarter, and we hope to complete our debt reduction program during the fourth quarter,” says CEO Magnus Ryde. DayStar has also significantly reduced its 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,” he adds. “As we stated on 22 July, we are pursuing partnerships to implement this strategy. Those potential partnerships, if consummated, could include joint ventures, licensing agreements, contract manufacturing agreements, [or] a reverse merger with or an acquisition of DayStar.”

See related items:

CIGS firm DayStar in discussions with potential partners

Tags: DayStar CIGS

Visit: www.daystartech.com