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TICKERS: EGT; EGTYF

Energy Storage Firm's Gross Sales Up Sharply, Jabil Manufacturing Transition in Place
News Update

Source:

The company completes the supply chain information transfer to manufacturing giant Jaybil.

Eguana's AC Battery Model

Eguana Technologies Inc. (EGT:TSX.V; EGTYF:OTCQB) announced in a news release it achieved gross sales of about $1.8 million in August and September from shipments, which is about twice that obtained in Q3 FY19.

To meet customer demand, the sales team expedited shipments during those two months, which will have the effect of dampening gross margins in the near term.

"After completing financing activities at the end of the third quarter the Operations team expedited the supply chain through July and August to increase near term shipments. The expediting will depress gross margins in the short term however was necessary to meet the customer demand and expectation," CEO Justin Holland said in the release. "We expect gross margins to improve through the current quarter with a reduction in raw material expediting and a return to standard material lead times."

In other news, Eguana's shift to the manufacturing partner Jabil Circuit continues. Already the supply chain information has been transferred to it. The initial units should be tested in the next four to six weeks, and the first products shipped later in the quarter. "To meet demand through 2020, Jabil will be critical from a supply chain, margin and capacity perspective," added Holland.

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