BURNABY, BC, May 27 /CNW/ - Day4 Energy Inc. (TSX: DFE), a leading supplier of high performance, cost-effective solar electric solutions, today announced that it has signed an agreement with Enersis, the second largest PV company in Slovenia, for a 25 megawatt (MW) turnkey manufacturing technology solution for the production of Day4 Energy ("Day4") branded products to address the rapidly growing Eastern European photovoltaic market.
"We are very excited about this announcement, the first in a series of licensing agreements that we expect will add significant revenue to Day4 from 2011 onward," said George Rubin, President of Day4. "This is a clear example of how Day4's turnkey manufacturing technology solution provides the ability to scale the volume of business and increase market share in emerging markets for Day4 products and brand without a significant requirement on capital investment by Day4."
At current market prices and full capacity utilization the 25 MW line is expected to provide approximately 1.2 million Euros per year in royalty revenue to Day4. Once the acquisition of ACI is complete Day4 expects to recognize two distinct revenue streams from these transactions:
1. The first is one-time revenue of roughly 3 million Euros from the
sale of equipment and consulting services related to construction and
set up of the turnkey production line.
2. The second is the ongoing royalty revenue stream, as referred to
above, on the sales of products manufactured using the turnkey
"Eastern Europe has tremendous growth potential and is already the third largest market on the continent behind Italy and Germany. We are looking forward to working with Day4 in this new venture to address this unique and exciting opportunity," added Mr. Andrej Hanžic, Director of Enersis. "Our established relationships and position as the second largest PV industry company in Slovenia can be leveraged for the purpose of ramping up sales of the Day4 branded technology products."
About Day4's Manufacturing Technology Solution:
On April 26, 2010 Day4 announced that it had entered an agreement in principle to acquire ACI-ecotec GmbH & Co. KG ("ACI"), a privately owned, specialized photovoltaic (PV) equipment design and manufacturing company based in Germany. The combination of the Day4 proprietary technology and ACI's specialized know-how and equipment allows Day4 to immediately launch the offering of its highly anticipated turn-key manufacturing technology solution for the production of PV cells and PV modules. ACI's existing customer relationships, execution capabilities and solid market reputation provide Day4 with a unique opportunity to rapidly roll out its manufacturing technology offering across a wide cross section of PV manufacturers in a number of key markets. At the same time, ACI's manufacturing process and equipment engineering capabilities will add significant depth to Day4's R&D team and allow the company to significantly accelerate the development of the next generations of PV technology.
Based on the patented Day4 Electrode and Guardian technologies, Day4's manufacturing solution offers PV cell and module producers an opportunity to reduce their investment and production costs while achieving sustainable differentiation in highly competitive solar markets. The solution will allow them to produce one of the industry's highest performing products that customers around the world have grown to associate with the highest levels of reliability, energy production and investment return.
With technological differentiation rapidly emerging as a critical area for most PV manufacturers, Day4's offering of a turn-key package of manufacturing technology, proprietary equipment, process, product design and technology license is a natural evolution of the company's business.
By offering a turn-key Day4 PV cell and PV module manufacturing solution to the PV industry, Day4 is looking to significantly expand the market share of products based on Day4's proprietary technology in existing as well as new and emerging markets around the world. Furthermore, Day4 manufacturing solutions sales are expected to significantly alter the company's revenue model as manufacturing line integration services and technology royalty streams associated with the new product offering become an increasingly large component of the company's revenue mix over time.
Day4 Energy Inc. is a Canadian company dedicated to providing high performance photovoltaic (PV) solutions for residential, commercial and utility scale installations. By fundamentally improving on the design and assembly of solar cells and modules, the Company produces unique PV panels of high power density, increased lifetime and uncompromised aesthetic appearance. Day4 partners with international technology leaders to develop and deliver IEC- and UL-certified solar products to customers around the world. Day4 is listed on the Toronto Stock Exchange under the symbol "DFE". For more information, please visit www.day4energy.com.
About ACI-ecoTec GmbH & Co. KG:
ACI-ecotec GmbH & Co. KG located in South Germany, was founded in 1980 and develops, builds, and integrates state-of-the-art production automation and process equipment for the Photovoltaic industry. This includes precision robotic work-cells and turn-key production lines for assembly, micro-assembly, measurement and testing, for the production of Photovoltaic Wafers Cells and Modules. Products include the ecoSol(R) for the production of Solar Modules; the ecoContact(TM) for contacting of Thin Film Modules and Cells; the ecoSplit(TM) for raw wet wafer separation, and a leading market-share process carrier for solar wafers and cells, the ecoCarrier(TM). www.aci-ecotec.com
Enersis was established in 2007 and has its roots in a family company that has operated in Slovenia and International markets for over 40 years. In its first two years of operation in the solar industry Enersis has sold equipment for PV systems and installed more than 40% of all Slovenian PV systems. www.enersis.si
This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements including but not limited to the fact that the conditions precedent to the completion of the proposed acquisition of ACI may not be successfully met and the acquisition may not be completed. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances.
SOURCE Day4 Energy Inc.
For further information: For further information: Therese Hayes, Head, Corporate Development, Day4 Energy Inc., (604) 345-6771, email@example.com; Heather Ballachey, Media Contact, Day4 Energy Inc., (604) 296-0445, firstname.lastname@example.org