CALGARY, Alberta, Nov. 21, 2022 (GLOBE NEWSWIRE) — Eguana Technologies Inc. (“iguana“or the”Company“) (TSX-V: EGT, OTCQB: EGTYF) today announced results for the fourth quarter ended September 30, 2022. Eguana said that due to a change that will make the December at the end of the Company’s year by adding the fifth quarter of fiscal 2022 results, the September results are quarterly and do not represent the entire fiscal year.
Eguana doubled energy storage and micro inverter shipments during fiscal Q4 compared to the previous quarter while continuing to scale up full turnkey production in San Jose, California. Supply chain risk continues to be effectively managed through the Company’s Alternative Parts program, and additional production capacity testing equipment has been installed and commissioned.
“The $40 million financing raised at the end of August allows us to quickly accelerate the supply of Eguana products to meet the increase in demand. In addition, our investments in the supply side remain on schedule, creating in capacity to deliver our growth goals by 2023” commented Eguana CEO Justin Holland. “We are very pleased to see micro inverter and ESS shipments more than double in the quarter and expect to see strong growth and more positive gross margins in the coming quarters.”
Fiscal Q4 2022 Financial Highlights
Q4 2022 product revenue was $2.60 million, a decrease of 16.6% from Q4 2021 product revenue of $3.12 million. The decrease was affected by a change in the ship at the shipping port on September 30, 2022, which drove $1.87 million in revenue recognition in the fifth quarter.
Q4 2022 gross margin from product sales was negative 9.60%, a decrease from 6.0% in Q4 2021. Gross margin was negatively affected by inventory rationalization adjustments as well as increased logistic and import duty costs.
The operating loss in Q4 2022 was $2.97 million, an increase from the $2.01 million operating loss in the same period in 2021
Positive working capital flow of $41.19 million as of September 30, 2022, an increase from $2.4 million for Fiscal 2021
Business Highlights and Outlook
Operations
Energy storage system (ESS) shipments doubled compared to the quarter ended June 30, 2022
Micro inverter shipments doubled compared to the quarter ended June 30, 2022
Increased first pass yield (FPY) in manufacturing to +80%
Installed a second IFT (Inverter Functional Test) station in San Jose, increasing nameplate production capacity up to 800 units/month in two transfer operations
Acquired 2 additional IFT stations for additional manufacturing capacity to support growth plans in 2023, with installations planned for fiscal first quarter
Supply Chain
Micro inverters to support initial $7 million DPC order landed or currently in transit in North America with additional 50% increased planned purchases for first fiscal quarter
Acquired approximately $10 million in additional battery modules to support North American 2023 ESS growth goals
Diversification of the supply chain was initiated to reduce dependence on China-based components
Sales, Channel Management, and Distribution
Streamlined installer training process to accelerate the sales cycle with on demand web-based training for products, installation, and commissioning
Additional field staff to support customer service and distribution and installer account management
An additional 144 ESS’ have been shipped to the Hawaii Battery Bonus Program
Added national Australian consumer finance package to support turnkey solar + storage sales and installation services
growth
Additional development staff to support Eguana cloud development, facilitate Nirvana and Trillium projects, and manage product certification requirements
Completed update to UL 9540 Ed2 / update to UL 1741 Ed3 for North American certification (Intertek/CSA)
Completed Evolve LFP AU and Evolve ESS AU certification (Primara/TUV)
The Company significantly increased its working capital position through the fiscal fourth quarter and continued to increase inventory and production test equipment, further risking its global supply chain and capacity requirements. production.
“The field and technical teams, through collaboration with the distribution branches, have realized early success resulting in more purchase orders and longer term visibility. The training programs are fast and structured to accommodate more installers with on demand training in addition to scheduled in-person seminars” added Holland. “The Company is significantly increasing investments in ESS and micro inverter inventory in anticipation of continued growth driven by acquisitions from our sales and installation training programs.”
The Consolidated Financial Statements and its Management Discussion and Analysis 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 in delivering grid edge power electronics for fuel cell, photovoltaic and battery applications, and delivers proven, robust, high quality solutions from high capacity its manufacturing facilities in Europe and North America.
With thousands of 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 in the grid edge.
To learn more, visit www.EguanaTech.com or follow us on Twitter @EguanaTech
Company Questions
Justin Holland
CEO, Eguana Technologies Inc.
+1.416.728.7635
Justin.Holland@EguanaTech.com
Forward Looking Information
The reader is advised that some of the information herein may constitute forward-looking statements within the meaning provided by National Instrument 51-102 and other relevant securities legislation. In particular, we include statements relating to the value of our power controls in the energy storage market and statements regarding 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 many risks and uncertainties. A number of 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 the forwarded information, which only speaks as of its date. 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 publicly release any changes to the forward-looking information contained herein to reflect events or circumstances occurring after the date hereof or to reflect events that are unforeseeable. events, except as 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.
