Eguana Technologies Inc. announced results for its third fiscal quarter ended June 30, 2021.
“Planned supply chain investments and inventory positioning started to have an impact during the back half of the quarter. More than two-thirds of the quarter revenue was recognized in June. Moreover, the Company has continued to grow this monthly run rate into fiscal Q4 with consistent production output,” commented Eguana CEO Justin Holland. “While Covid-19 supply disruptions continue to create challenges, Eguana has successfully demonstrated its ability to engineer component flexibility, a key competitive advantage of our advanced power controls that we expect to help offset the on-going supply disruptions.”
Fiscal Q3 2021 Financial Highlights
• Q3 2021 product revenue of $1.3 million, down from Q3 2020 product revenue of $1.9 million
• Q3 2021 gross margin from product sales of $48.1 thousand, or 3.6%, an increase from $21.9 thousand, or 1.2%, in Q3 2020
• Q3 2021 operating loss of $2.7 million relative to a $1.8 million operating loss for the same period in 2020
• Positive working capital trend from previous quarter, sitting at $10.0 million at June 30, 2021 from a working capital deficit of $5.2M for the F2020 year end
“The Covid-19 supply disruptions have had an acute impact on shipping costs, depressing product gross margins. We estimate that under normalized shipping conditions, product gross margins would have been approximately 11% and should continue to trend upwards as volumes increase and cost reduction programs continue,” Holland added.
Business Highlights
• Received first Hawaii order of $3.6M for the Emergency Demand Response Program (EDRP)
• Completed National Agreement with CED Greentech for greater distribution coverage
• Entered into discussions to white label the Evolve for multi-national battery company
• Completed battery management system (BMS) architecture for vertical integration strategy
• Diversified and strengthened Eguana Board of Directors
• Modified manufacturing process to double production capacity
“The 24M technology is targeted to deliver a 30%-40% reduction in battery costs versus current available technology. Itochu has brought multiple 24M licensees to the table and completing the BMS architecture is a key milestone to opening up future battery channels and cost savings for Eguana products” Holland concluded.
