DayStar Technologies Inc. (DSTI)
F3Q09 Earnings Call
November 13, 2008 at 5:00 pm ET
Alexis Pascal - Investor Relations
Stephen DeLuca - Chief Executive Officer and Director
William Steckel - Chief Financial Officer
Patrick Forkin - Vice President of Corporate Development
Dale R. Pfau - Cantor Fitzgerald
Colin Rusch - American Technology Research
Adam Krop - Ardour Capital Investments
» DayStar Technologies, Inc. Business Update Call Transcript
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I will now turn the call over to Alexis Pascal, who will introduce today’s speakers.
Thank you and welcome everyone to the DayStar Q3 financial results conference call. The speakers today will be Dr. Stephen DeLuca, the Company’s Chief Executive Officer, and Bill Steckel, the Company’s Chief Financial Officer.
Before we begin I would like to remind you that some of the comments we will make on this call are forward-looking including without limitations statements regarding expectations of further technological development, timing and technological technical and financial ability to scale to production capacity and complete the build-out of the production facilities and timing and ability to secure additional financing. Given the current market turmoil, we cannot provide assurance that such financing will be available on terms favorable to the Company whereof. If we fail today’s adequate funds on terms acceptable to us, we will be required to delay or terminate certain of our scale and commercialization activities and otherwise scale back our operations. These statements are only predictions based on assumptions that are believed to be reasonable at the time they are made and are subject to significant risks and uncertainties. You should not rely on any forward-looking statements as representing our views in the future and we undertake no obligation to publicly update or revise these statements. Our actual results may differ materially and adversely from any projections and forward-looking statements discussed on this call. Our annual report on Form 10K-SB and other forms on file with the SEC identify important risk factors and uncertainties that you should consider and that may affect whether our forward-looking statements prove to be correct.
I will now turn the call over to Dr. Stephen DeLuca. Steve?
Thanks Alexis and thanks to all of you for joining us today. I am here today with Bill Steckel, our Chief Financial Officer and Patrick Forkin, our Vice President of Corporate Development. Bill will be presenting the financial results, but let me start with a few comments on our operational progress.
As a reminder, we held an operation update call just four weeks. On that call we stated that all of our Q3 technical goals were met and that we are focused on successfully scaling up our single step deposition process. Since that call, we have continued to run Big Baby and we have achieved greater than 12% cell efficiencies on our 2’ by 4’ substrates. And our Newark California fab, we have continued to build out our first production CIGS deposition tool. We expect to have a capability to produce full 2’ by 4’ modules in Q1 2009 as we begin operation of the production tool. We are maintaining our timeline to commence commercial shipments in Q3 2009.
Based on the progress we have made to date, we believe we can produce modules at a cost of approximately a dollar per watt and 100-megawatt scale. It is advantageous for us to get there as fast as we can in order to capitalize on growing demand for high efficiency, low cost PV modules. We are actively working to bring in strategic partners to finance the expansion of our manufacturing capabilities.
Bill will now take you to our financial results. Bill?
Thank you, Steve. I would also like to thank everyone for joining us on today’s call. I will review our financial results for the third quarter before turning the call back over to Steve.
I encourage all shareholders to review the details of our operations and financial condition that will be disclosed on Form 10-Q which we will file with the SEC this week. Now, let us review our results for the third quarter.
Our net loss in the third quarter of 2008 was $6.7 million or a loss of $0.20 per share. This compares with a net loss of $3.8 million or a loss of $0.25 per share in the third quarter of 2007. The per share loss was calculated on the weighted average common shares outstanding of 33.3 million this year compared with 15.2 million last year reflecting our Q4 ’07 secondary offering. The increased loss mainly reflects higher operating expenses for commercialization of CIGS-on-glass module and manufacturing processes.
Specifically, within operating expenses we incurred $5.1 million in research and development cost during the quarter, an increase of $2.9 million or 131% compared with the third quarter of 2007. The increase reflects the continued ramp of personnel costs and other spending for the development of our CIGS-on-glass modules and the manufacturing processes we will utilize in our new factory. The higher costs were primarily due to the addition of key personnel, consumable tools and supplies, and share based compensation expense.
Selling, general and administrative expenses in the third quarter were $2 million, an increase of $893,000 or 79% compared with the same quarter last year. The increase was primarily due to personnel costs to support our progress toward commercialization of our CIGS-on-glass modules.