Burnaby-based Day4 Energy Inc. (TSX: DFE), a global provider of solar photovoltaic (PV) products, today reported net losses of $7 million in the first quarter of 2011.
Day4 president George Rubin said, “There is little doubt that the first half of 2011 is shaping up to become one of the most challenging periods in the history of our industry.
“As a result of the Italian market essentially being frozen for a number of months, inventory levels climbed across the PV value chain, while material and product prices experienced a significant decline from late 2010 levels. Our operating results for the first quarter clearly reflect the challenges that we, as well as the rest of the industry, experienced over the last few months.”
“That being said, the highly competitive market that we are now facing provides both a challenge and an opportunity. The immediate impact on inventory and working capital management is a key challenge, and we reacted to the demand disruption quickly by halting production and realigning our workforce to reduce expenses and protect our working capital.
“In parallel, we used this time period to accelerate the transition of our business to a technology and brand licensing model. With the market demanding competitive differentiation, especially in the form of performance, we have a unique opportunity to capitalize on the growing interest in next-generation technologies among PV cell and module manufacturers.”
In April, Day4 laid off 30 employees as it struggled with an $84 million deficit. (See: “Short-term prospects dim for solar energy” – issue 1122; April 26-May 22)
Day4 stocks have decreased to $0.245 from a 52-week high of $0.76.
Jennifer Harrison
Twitter: jharrisonbiv