CALGARY,
AB, Aug. 29, 2022 /CNW/ - Eguana Technologies
Inc. ("Eguana" or the "Company") (TSXV: EGT) (OTCQB:
EGTYF) today announced results for its third quarter ended
June 30, 2022.
Full energy storage system production began in June at the
San Jose, California facility with
product throughput and first pass yield increasing each month
since. Supply chain risks have been minimized through an integrated
Alternate Parts Program and strategic inventory investments.
Additional capacity will be immediately added as the Company
continues its focus on production output and availability.
"We knew supply side optimization and output would be
critical given our projected growth rates" commented Eguana CEO
Justin Holland. "We expect to see
rapid uptake in the near term with more distribution branches
opening and additional white label partners coming on, which will
drive micro inverter and energy storage sales revenues."
Fiscal Q2 2022 Financial Highlights
- Q3 2022 product revenue of $2.32
million, an increase of 73.5% from Q3 2021 product revenue
of $1.34 million. The increase was
generated through the introduction of the micro inverters to go
alongside the energy storage systems
- Q3 2022 gross margin from product sales of 0.04%, a decrease
from 3.6% in Q3 2021. Gross margins were negatively impacted by a
one-time inventory rationalization result from the operations and
supply chain relocation to San
Jose
- Q3 2022 operating loss of $2.68
million, a slight increase from a $2.31 million operating loss for the same period
in 2021
- Positive working capital trend sitting at $7.4 million at June 30,
2022, an increase from $2.4
million for Fiscal 2021
Business Highlights and Outlook
Operations
- Completed phase one plant commissioning, production transition,
and IFT (production test and capacity) installation for turn-key
manufacturing in San Jose,
California
- Second IFT installation planned for September 2022, doubling nameplate production
capacity to 800 units per month
- Targeting continued improvement in overall capacity utilization
throughout the next two quarters with an immediate focus to
achieving first pass product yields above 90%
- Improved product certification efficiency as the Company
qualified under CSA's Supervised Manufacturer's Testing for
Certification Program (SMTP) allowing it to conduct its own
certification testing in house and submit the results for approval
by CSA
Supply Chain
- Strategic component inventory investments to accelerate current
orders, support future growth and white label opportunities
- Initiated $12 million inventory
investment in battery modules and micro inverters to build on-shore
availability, reducing port and logistics related delay
- De-risking component inventory through Eguana/Omega integrated
Alternate Parts Program
- Working capital expansion to more timely match future order
expectations
Sales, Channel Management, and Distribution
- Consumer based premium brand marketing commenced, expected to
drive growth and awareness through distribution and installer
channels
- Augmented sales management senior leadership to accelerate
distribution branch onboarding and installer & consumer
marketing, sales management, white label and utility channel
opportunities
- Branch level onboarding process improvements to increase repeat
orders as well as additional white label opportunities direct and
with partners in various utility channels over the next two
quarters
Order Book and Finance
- Total order book of $27
million
-
- Received $2.4 million energy
storage order for Hawaii VPP
- Received +$7 million micro inverter order for North American
markets
- Negotiated $33 million
convertible debenture with ITOCHU Corporation
- Negotiated US$5 million second
draw with Western Technology Investment
Through the quarter the Company worked with long standing
partners ITOCHU and Western Technology Investment to significantly
increase its working capital position, culminating in two
transactions totaling approximately $40
million. The new capital will accelerate growth objectives
with significant increases in inventory investment for micro
inverters and battery modules required to meet market demand.
Additional production capacity equipment has been procured and will
be installed in the San Jose
facility in September 2022 and
March 2023.
"Based on market demand, based primarily in North America and Australia, we needed to significantly increase
our inventory positioning with respect to battery modules and micro
inverters, the new capital has provided that opportunity" Holland
continued. "We will continue increasing production capacity and
output with our partners in San
Jose to meet the increasing volumes."
The Consolidated Financial Statements and the Management
Discussion and Analysis thereof are available on SEDAR
at www.sedar.com
About Eguana Technologies Inc.
Based in Calgary, Alberta
Canada, Eguana Technologies Inc. (EGT: TSX.V) (OTCQB: EGTYF)
designs and manufactures high performance residential and
commercial energy storage systems. Eguana has two decades of
experience delivering grid edge power electronics for fuel cell,
photovoltaic and battery applications, and delivers proven,
durable, high quality solutions from its high capacity
manufacturing facilities in Europe
and North America.
With thousands of its proprietary energy storage inverters
deployed in the European and North American markets, Eguana is one
of the leading suppliers of power controls for solar
self-consumption, grid services and demand charge applications at
the grid edge.
To learn more, visit www.EguanaTech.com or follow us on
Twitter @EguanaTech
Forward Looking Information
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 pertaining to
the value of our power controls to the energy storage market and
statements concerning the use of proceeds and the Company's ability
to obtain necessary approvals from the TSX Venture
Exchange.
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 most recent audited Financial Statements 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.
SOURCE Eguana Technologies Inc.