May 28 2010
Day4 Energy Inc. (TSX: DFE), a leading supplier of high performance, cost-effective solar electric solutions, today announced that it has signed an agreement with Enersis, the second largest PV company in Slovenia, for a 25 megawatt (MW) turnkey manufacturing technology solution for the production of Day4 Energy ("Day4") branded products to address the rapidly growing Eastern European photovoltaic market.
"We are very excited about this announcement, the first in a series of licensing agreements that we expect will add significant revenue to Day4 from 2011 onward," said George Rubin, President of Day4. "This is a clear example of how Day4's turnkey manufacturing technology solution provides the ability to scale the volume of business and increase market share in emerging markets for Day4 products and brand without a significant requirement on capital investment by Day4."
At current market prices and full capacity utilization the 25 MW line is expected to provide approximately 1.2 million Euros per year in royalty revenue to Day4. Once the acquisition of ACI is complete Day4 expects to recognize two distinct revenue streams from these transactions:
- The first is one-time revenue of roughly 3 million Euros from the sale of equipment and consulting services related to construction and set up of the turnkey production line.
- The second is the ongoing royalty revenue stream, as referred to above, on the sales of products manufactured using the turnkey manufacturing line.
"Eastern Europe has tremendous growth potential and is already the third largest market on the continent behind Italy and Germany. We are looking forward to working with Day4 in this new venture to address this unique and exciting opportunity," added Mr. Andrej Hanžic, Director of Enersis. "Our established relationships and position as the second largest PV industry company in Slovenia can be leveraged for the purpose of ramping up sales of the Day4 branded technology products."
Source: http://www.day4energy.com/