Commercialization Progress Continues
SANTA CLARA, Calif., Nov. 13 /PRNewswire-FirstCall/ --
DayStar Technologies, Inc. (NASDAQ:DSTI), a developer of photovoltaic products based on CIGS thin-film semiconductor technology, today announced financial results for its third quarter ended Sept. 30, 2008.
Net loss for the third quarter was $6.7 million, or a loss of $0.20 per share, compared with a net loss of $3.8 million, or a loss of $0.25 per share in the third quarter of 2007. The increase in net loss reflects higher operating expenses for CIGS-on-glass module and manufacturing process development as the company continued its progress toward commercialization. The per share loss was calculated on the weighted average common shares outstanding of 33.3 million, compared with 15.2 million in the third quarter of last year, reflecting the company's public offering in the fourth quarter of 2007.
DayStar had cash, cash equivalents and investments of $34.4 million at Sept. 30, 2008, compared with $47.9 million at June 30, 2008. Except for operating accounts, all of the company's cash is invested in U.S. treasury instruments. As of Sept. 30, 2008, the company had total liabilities of $8.1 million, and total stockholders' equity was $50.2 million.
The company also reported third quarter capital investments of $9.5 million to support its planned ramp to commercial production.
"We are pleased to announce that we have met our third quarter technical milestones and are now focused on successfully scaling up our single step deposition process," said Dr. Stephan DeLuca, chief executive officer. "We have achieved greater than 12 percent cell efficiencies on our 2' by 4' substrates. Additionally, we have continued to build out CIGS 1, our first production deposition tool, and we expect to have the capability to produce full 2' by 4' modules in the first quarter of 2009" he said.
Conference Call
DayStar will hold its third quarter conference call today, Thursday, Nov. 13, 2008, at 2 pm Pacific time. To listen to the call, dial (415) 228-4574 approximately 10 minutes prior to the start of the call. The pass code is DayStar. A taped replay will be made available approximately one hour after the conclusion of the call and will remain available for one week. To access the replay, dial (203) 369-3290.
About DayStar Technologies, Inc.
DayStar Technologies, Inc. is engaged in the development, manufacturing and marketing of photovoltaic products based upon CIGS thin film semiconductor technology. For more information, visit the DayStar website at http://www.daystartech.com/.
Certain statements contained in this press release, including, without limitation, statements regarding expectations of further technological development as well as, timing and technical and financial ability to scale to production capacity and complete the build out of a production facility, and timing and ability to secure additional financing and other statements contained herein regarding matters that are not historical facts, are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995). 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. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those factors discussed in the section entitled "Risk Factors" in our Annual Report on Form 10-KSB filed with the SEC on March 31, 2008, our registration statement on Form S-3 filed with the SEC on July 8, 2008, as well as other forms filed with the SEC. You should not place undue reliance on the forward- looking statements in this press release, and we disavow any obligation to update or supplement those statements in the event of any changes in the facts, circumstances, or expectations that underlie those statements.
DAYSTAR TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
BALANCE SHEETS
September 30, December 31,
2008 2007
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 25,799,722 $ 61,365,559
Investments 8,611,096 -
Other current assets 566,473 666,511
Total current assets 34,977,291 62,032,070
Property and Equipment, at cost 31,206,328 14,911,021
Less accumulated depreciation
and amortization (8,074,990) (5,774,823)
Net property and equipment 23,131,338 9,136,198
Other Assets 204,490 72,427
Total Assets $ 58,313,119 $ 71,240,695
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $4,579,806 $2,622,968
Notes and capital leases payable,
current portion 183,586 174,996
Deferred rent, current portion 79,927 -
Deferred revenue 420,000
Total current liabilities 5,263,319 2,797,964
Long-Term Liabilities:
Notes and capital leases payable 32,086 171,983
Deferred revenue - 420,000
Deferred rent 1,927,577 -
Stock warrants 856,308 2,771,090
Total long-term liabilities 2,815,971 3,363,073
Commitments and Contingencies
Stockholders' Equity:
Preferred stock, $.01 par value;
3,000,000 shares authorized;
0 shares issued and outstanding - -
Common stock, $.01 par value;
120,000,000 shares authorized;
33,438,862 and 32,621,262
shares issued and outstanding at
September 30, 2008 and
December 31, 2007, respectively 334,389 326,213
Additional paid-in capital 139,057,183 135,387,049
Accumulated deficit (10,145,391) (10,145,391)
Deficit accumulated during the
development stage (78,994,388) (60,488,213)
Accumulated other comprehensive loss (17,964) -
Total stockholders' equity 50,233,829 65,079,658
Total Liabilities and
Stockholders' Equity $58,313,119 $71,240,695
DAYSTAR TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2008 2007 2008 2007
Revenue: $- $- $- $-
Costs and Expenses:
Research and
development 5,135,579 2,219,404 11,991,015 7,159,576
Selling, general
and administrative 2,016,110 1,123,402 6,806,396 4,286,315
Restructuring - 201,855 - 1,756,220
Depreciation and
amortization 783,268 769,735 2,307,672 2,227,082
Total costs
and expenses 7,934,957 4,314,396 21,105,083 15,429,193
Other Income (Expense):
Other income 268,394 44,563 716,165 129,322
Interest expense (8,877) (122,499) (32,039) (250,825)
Amortization of
note discount and - ( 94,813) - (4,162,312)
financing costs
Gain (loss) on
derivative
liabilities 926,664 651,046 1,914,782 (2,305,293)
Loss on
extinguishment
of debt - - - (6,091,469)
Total other
income
(expense) 1,186,181 478,297 2,598,908 (12,680,577)
Net Loss $(6,748,776) $(3,836,099) $(18,506,175) $(28,109,770)
Weighted Average
Common Shares
Outstanding
(Basic And Diluted) 33,348,373 15,197,962 33,073,037 14,249,560
Net Loss Per Share
(Basic and Diluted) $(0.20) $(0.25) $(0.56) $(1.97)
DATASOURCE: DayStar Technologies, Inc.
CONTACT: Alexis Pascal, or Cathryn Johnson,
, both of Stapleton Communications Inc., +1-650-470-0200,
for DayStar Technologies, Inc.
Web site: http://www.daystartech.com/