Daystar Reports Net Loss of $7.4 Million
DayStar Technologies, a developer of solar photovoltaic products based on CIGS thin-film deposition technology, has announced financial results for its third quarter ended September 30, 2010. Net loss for the third quarter of 2010 was $7.4 million or $1.62 per share, compared with a net loss of $6.2 million or $1.66 per share in the third quarter of 2009. The net loss for the third quarter of 2010 included non-cash expenses of $6.3 million which increased the loss per share by $1.38 per share. The net loss for the third quarter excluding non-cash charges was $1.1 million or $0.24 per share, reflecting the significant cost savings measures implemented by the Company including a reduction in workforce and decrease in occupancy costs. The non-cash charges resulted from the restructuring of the Company’s balance sheet in an effort to extinguish certain liabilities while we pursue strategic partnerships to commercialize our product. The Company incurred $2.0 million in restructuring charges related to the impairment of certain equipment during the quarter. Additionally, during the third quarter the Company restructured all of its existing convertible notes which resulted in the extinguishment of the original notes on the balance sheet and the recording of new notes and corresponding conversion features. This resulted in a loss on extinguishment of debt of $4.9 million during the quarter, primarily due to the fair value of the conversion features on the restructured notes. The per share losses were calculated on the weighted average common shares outstanding of 4.6 and 3.7 million for the third quarter ended September 30, 2010 and 2009, respectively. DayStar CEO, Magnus Ryde, commented, "We are pleased with the progress we have made to significantly decrease debt and operating expenses. We were able to reduce our accounts payable and accrued expenses by $7.8 million during the quarter and we hope to complete our debt reduction program during the fourth quarter. In addition, we have significantly reduced our 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. As we stated on July 22, 2010, we are pursuing partnerships to implement this strategy. Those potential partnerships, if consummated, could include joint ventures, licensing agreements, contract manufacturing agreements, a reverse merger with or an acquisition of DayStar," he concluded. DayStar Technologies is engaged in the development, manufacturing and marketing of solar photovoltaic products based upon CIGS thin film deposition technology.
