Eguana Technologies (TSXV: EGT) last night reported its third quarter financial results. The firm saw its revenues climb to $2.32 million, an improvement over both the prior quarter as well as the year ago period.
Revenue was said to increase for the third quarter as a result of the the recent introduction of microinverters to its product lineup. Gross margins however fell to just 0.04%, which the company blamed on a “one-time inventory rationalization,” which is said to be a result of moving operations and its supply chain to San Jose.
However, plant commissioning, production transition and production test and capacity installation for the first phase is said to now be completed at the firms San Jose, California facility as of June, with a second production test and capacity installation slated to occur in September. This expansion will enable production capacity to increase to 800 units a month.
Future growth is now expected to be brought forward, with the company said to have initiated upon a $12 million inventory investment in both battery modules and micro inverters, while at the same time focusing on its sales channels to drive further orders. Eguana indicated that its total order book currently sits at $27 million, of which over $7.0 million is related to micro inverters and $2.4 million is related to its Hawaii VPP program.
“We knew supply side optimization and output would be critical given our projected growth rates. We expect to see rapid uptake in the near term with more distribution branches opening and additional white label partners coming on, which will drive micro inverter and energy storage sales revenues,” said CEO Justin Holland.
The company reported a net loss of $3.2 million for the period ended June 30, 2022. The firm meanwhile reported a cash position of $1.7 million, which doesn’t include a recent $33.0 million investment by ITOCHU, with total current assets amounted to $13.3 million. Current liabilities meanwhile amounted to $5.9 million.
“Based on market demand, based primarily in North America and Australia, we needed to significantly increase our inventory positioning with respect to battery modules and micro inverters, the new capital has provided that opportunity. We will continue increasing production capacity and output with our partners in San Jose to meet the increasing volumes,” continued Holland.
Eguana Technologies last traded at $0.40 on the TSX Venture.
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