In a news release, residential and commercial energy storage systems manufacturer Eguana Technologies Inc. (EGT:TSX.V; EGTYF:OTCQB) reported business operating highlights and financial results for FY/20 ended September 30, 2020.
The company's CEO Justin Holland commented, "The entire Eguana team worked tirelessly throughout the year under very difficult and often changing conditions, complicated by a global pandemic, to achieve a number of milestones: record revenues, record order book, and multiple product and certification completions."
The company advised that Q4/20 revenue increased 61% to $1.33 million, compared to Q4/19. The firm noted that the gross margin from product sales in Q4/20 improved to $0.01 million, in comparison to negative $0.03 million in Q4/19.
Eguana Technologies reported that for FY/20 revenue increased 132% year-over-year to $7.95 million. The company added that in FY/20 gross margins from product and engineering sales increased to $0.9 million, compared to $0.07 million in FY/19. The firm stated for FY/20 it incurred an operating loss of $5.14 million, versus an operating loss of $7.46 million in FY/19.
The firm discussed business activities in FY/20 highlighting its strategic partnership with Itochu Corp. and that company's $5.0 million investment in Eguana, which was structured as convertible debentures with warrants to purchase Eguana common shares. The two companies partnered on a development contract including Moixa Gridshare AI integration, whereby Itochu served as the battery supplier and provided working capital support.
The company reported that in FY/20 it certified and launched cobalt-free LFP Evolve and Evolve Hub into North America. The firm stated that it expanded its network of dealers to 239, including 195 in the U.S. and 44 in Australia. Eguana noted that it also had expanded credit with Export Development Canada.
CEO Holland remarked that "significant growth is expected for the residential energy storage markets through 2021 and beyond, with a record order book and back log, higher margin products, as well as a diversified battery module supply chain, Eguana is poised to deliver its best results to date."
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