PHOTON International The Photovoltaic Magazine

Financing at CIGS start up Daystar enough to last till mid-2006

CIGS start-up Daystar Technologies Inc. says it has enough cash to finance its R&D till mid-2006, but will need additional infusions to set up manufacturing or it »will be forced to curtail or terminate operations.«

In its quarterly report for the period ended Sept. 30, the thin-film PV manufacturer reported cash and cash equivalents of $5.8 million. In February, Daystar had netted $8.4 million after expenses from an initial public offering (3/2004, p. 29). For the first nine months of 2004, Daystar says it spent $2.2 million. At this rate, the company would have enough funds for about 24 months.

Daystar's business plan calls for ramping up production in three stages, from a pure batch mode, to a partially continuous pallet manufacturing process, and finally to a continuous, roll-to-roll process. According to the quarterly report, Daystar doesn't expect any sales of CIGS solar cells until the latter part of 2005. The company says its anticipates »a significant net loss« in 2004 and is predicting that losses will increase substantially in 2005 until the sales kick in.

Daystar, which decided to move from California to New York State in July (see PI 8/2004, p. 31), confirmed $1.7 million worth of purchase orders for equipment and factory build-out at the end of the quarter. The company only reported revenues of $51,000 for the quarter from PV system sales by its subsidiary, Daystar Solar, leaving a profit of just over $6,300 after costs.

After sinking to an all-time low of $1.43 during trading on Aug. 11, Daystar's share price hit a seven-month high of $3.70 during very heavy trading on Nov. 10, closing at $3.12 and, on the next day, at $3.27. But on Nov. 12, the day the quarterly report was made public, the share price started a slide, closing at $3.13. By Nov. 29, the stock was selling for $2.80 per share.