Eguana Files Interim Financial Statements & Provides Market Update
September 2, 2014 (Source: Marketwired) — Eguana Technologies Inc (TSX VENTURE:EGT) (“Eguana” or the Company”) a leading supplier of high performance power controls for grid edge energy storage applications has filed its Interim Consolidated Financial Statements for the nine month period ending June 30, 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.
- Key changes in the US residential market driving strong demand for Bi-Direx technology in 2015
- Continued revenue and demand growth for Bi-Direx inverter in European solar self consumption market
- Multi – year deal to supply Bi-Direx power control system in high growth Hawaiian solar storage market
Significant New Developments
Key Market Changes in US: The demand profile for the US residential market changed materially in the first half of 2014. Although relatively modest demand for backup power systems had previously been forecast for this market, it is now clear that grid stabilization and control solutions needed to sustain continued growth in renewable generation – including real time load balancing, voltage control on residential feeders, and frequency regulation – is driving demand for storage deployed alongside rooftop solar PV to supply these services.
Eguana’s Bi-Direx smart grid energy storage inverter is one of only a very small handful of energy storage inverters suited for US grid tied application, and the only energy storage inverter with the advantage of having a deployed base of over a thousand networked systems.
Eguana is seeing demand for Bi-Direx from multiple sources. This month we signed a non-binding letter of intent with a Hawaiian company to supply value added power control systems for residential storage solutions. Customer indicated demand is for several thousand units annually beginning in 2015. We also have business at the table with integrators in California, and on the Eastern Seaboard, who have ordered Bi-Direx products and/or currently have Bi-Direx inverters for acceptance testing with customer indicated demand for several thousand units in 2015 and the potential to grow significantly in following years.
Trends in German Solar Self Consumption Market: EUPD, the leading German research institute for solar energy storage, has forecast continued growth in energy storage for solar self consumption. EUPD is forecasting 20,000 units in 2015, doubling to 40,000 units in 2016, with rapid escalation thereafter due to a combination of increasing electricity prices and declining battery costs. Significantly for Eguana, EUPD sees the retrofit market in Germany opening next year as early solar feed in tariff contracts expire and pricing drops to current levels. By 2016, the retrofit application in Germany will represent 50% of the market with 20,000 units installed annually. EUPD estimates that this will grow to more than 100,000 installations in 2018 of which more than 70,000 units will be for retrofits of existing installations.
Unlike most European products, which are suitable for new installations, Eguana’s patented Bi-Direx design enables a highly efficient and very flexible “AC coupled” topology which works equally well with new installations and retrofits.
We continue to grow product sales revenues for solar self consumption markets in Europe. Product sales revenues for the nine months ended June 30, 2014 were $1,363,125 compared to $132,748 for same period in 2013. Q3 revenues were $477,410, up 20% from $396,357 in Q2, 2014, but below expectations, and below contractually committed volumes for the period. The lower revenues were due to reduced throughput at Sonnenbatterie’s facility in June during transition to the new ECO product, which, in turn, required us to significantly reduce deliveries from our Durach facility during the month.
In June, Sonnenbatterie launched the market leading ECO residential product reducing the selling price point per kilowatt hour by almost 40%. Demand for the ECO has been very positive and our production levels are back up to two shifts at the facility in Durach. Estimated revenues for July and August currently total more than $680,000 as of the date hereof. Customer demand forecasts for Bi-Direx for the next 3 months beginning September 1, 2014, are for volumes valued at approximately $1.8 million with contractually committed take or pay orders Bi-Direx units valued today at approximately $1.4 million.
Outlook and Priorities
We see continued growth in demand in Europe for the balance of the calendar year and into 2015. We see demand in the US picking up significantly in the first half of the year and growing from that point. Our priorities remain unchanged: to build volumes and revenues in Europe and the US; and to position Bi-Direx as the technology leader for grid edge energy storage globally. Investors should look for Eguana to:
- Convert business at the table in the US residential market to longer term multi-year deals to supply smart power control systems for edge of grid utility support;
- Continue and expand its relationship with Sonnenbatterie in Europe and in the US; and
- Secure strategic partnerships to deliver a fully integrated three phase “AC Battery” for demand charge and energy management services in the US commercial and institutional markets.
About EGUANA TECHNOLOGIES, INC:
Headquartered in Calgary, Alberta, Canada, Eguana Technologies Inc. designs and manufactures intelligent high performance low-voltage power electronics platforms for distributed smart grid and energy storage applications. Eguana’s 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.
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 concerning potential growth in the US residential storage market; statements concerning potential revenues from July through November; statements concerning the features of our Bi-Direx platform and its value for energy storage system, statements concerning the potential for securing commercial relationships; and statements concerning the potential for new business in the US and Europe.
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 Management Discussion and Analysis related to its 2013 Annual Financial Statements. 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.
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