DayStar CEO Issues Operational Update and Details Major Milestone Events
THURSDAY, APRIL 21, 2005 10:23 AM
- PR Newswire
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HALFMOON, N.Y., April 21, 2005 /PRNewswire-FirstCall via COMTEX/ -- Dr. John Tuttle, Chairman and CEO of DayStar Technologies, Inc. (DSTI) , a developer and manufacturer of patented and proprietary high performance, silicon-free solar cells on specialty metal foils, today released an operational update detailing fundamental progress that has been made by DayStar over the past three months. In a letter to fellow shareholders, Dr. Tuttle stated:
"As I pause for a moment and reflect on the past 12 months, I'm inspired by all that our team has accomplished. Looking forward, I'm energized by our position and the enormous opportunities we expect to aggressively capture in the coming months. The DayStar team continues to execute incremental strategies to achieve the high-value goal of continuous manufacturing of solar cells. In this regard, I am delighted to provide our growing family of shareholders with the following update related to our activity over the past three months.
"In the technology area, we have successfully transferred our solar cell production processes from our California to our New York facility. Our GEN-I production development line has been consistently producing solar cells on glass and metallic substrates. Moreover, we have surpassed the 10% cell efficiency benchmark and look to improve upon that in the near future. Our GEN-I line is an invaluable tool for prototyping our Photovoltaic Foil(TM) products, up to 100-cm2 in size, and benchmarking process steps for our GEN-II line. We look forward to reporting state-of-the-art cell performance as we improve our baseline processing.
"Further, I am very pleased to report that we have successfully made our first solar cells employing our GEN-II production methodology. Our initial product focus on GEN-II is 100mm cell coupons, though we plan to transition to 125mm substrates in the near future as normal optimization and tuning of the line takes place. The performance of the cells is better than we had anticipated at this juncture and we expect to surpass the 10% benchmark in the coming weeks. Producing cells off of GEN-II now allows us to supply our Photovoltaic Foil(TM) to our qualified and growing list of near term customers and is a significant incremental step toward accomplishing GEN-III roll to roll line development.
"In my previous update in February, I described the expansion capabilities designed into our HalfMoon, NY production facility. Our initial intent was to demonstrate a 1-MW/yr production capability with the proceeds of the 2004 $10.5M IPO. However, with the overwhelming response to, and demand for, our high specific power LightFoil(TM) product from the defense, homeland security and commercial marketplace, we built into our facility the capability of expanding to 10 MW/yr of production capacity.
"The demand for our LightFoil(TM) product is coming from three use types: 1) airborne vehicles such as high-altitude airships and unmanned aerial vehicles; 2) military land uses including remote battlefield sensor power, solar charging blankets, and portable power; and 3) commercial OEM uses for consumer devices, clothing etc. In many cases, the desired cell performance and cost characteristics are different. Our GEN-I and GEN-II production methodologies lend themselves to meeting these variable customer requirements.
"LightFoil(TM) products represent a significant high margin, immediate and incremental revenue channel while we keep our long term focus squarely on GEN- III and our silicon solar cell replacement product for use in conventional flat-plate modules. In the coming weeks and months, we will be releasing the details behind these product strategies, as well as definitive information regarding many new customer relationships.
"You may have noticed in the press recently the numerous articles regarding the silicon supply problem and the many challenges it is causing for the solar industry in terms of price, availability and scalability. This situation continues to hamper the industry and has resulted in a market that is currently sold out and is forecasted to continue to be sold out until at least 2007 or beyond. As DayStar's Photovoltaic Foil(TM) products do not depend on this feedstock material, we routinely receive order inquiries from potential customers from around the world. Given this prevailing market dynamic, the implication is that DayStar will be successful at selling all Photovoltaic Foil(TM) that we are capable of manufacturing over the next several years.
"This situation graphically illuminates the advantages of our strategy and value proposition -- silicon-free CIGS solar cells, low cost, high-throughput manufacturing processes and highly flexible form factors. When DayStar has reached full GEN-III production, cost, form factor and scalability problems could be a problem of the past for the solar industry supply chain.
"As you can see, DayStar is intent on leading the way in industry innovation and technology. We are laser-focused and plan to innovate and deliver product the world has never seen. Our business model is compelling when you recognize the enormity of the market and the products we are preparing to meet the overwhelming demand.
"As I write this letter, we are beginning active discussions regarding our future financing requirements. Our 'A' and 'B' warrants afford the opportunity, when exercised, for approximately $60 million to be infused into DayStar at almost no cost to us. Moreover, many market indicators point to DayStar achieving greater price appreciation of our Common Stock. With that in mind, we look forward to capitalizing on opportunities to strengthen our balance sheet so that we may readily fund our expansion and growth. Rest assured, however, we will remain vigilant in protecting the shareholder value we have built thus far, and intend to carefully and thoughtfully balance the need for capital and expansion as we move forward.
"In closing, I want to underscore the accomplishments of 2004 and to articulate for you, my fellow shareholders, the enormous enthusiasm we all share for driving DayStar forward and continuing to hit milestones and increase shareholder value along the way. We are embarking on an exciting journey that is not without its challenges, however, we are confident in our abilities and our resolve to deliver to the world an efficient cost effective alternative to current sources of energy," concluded Tuttle.
