Queanbeyan, Australia - Dyesol's third quarter fiscal year 2013 Quarterly Report is available on the ASX and for download in full here.
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Q3 FY 2013 – Quarterly Report & Appendix 4C
The third quarter of FY2013 was a particularly busy time at Dyesol. During the period we secured strategic investment from Tasnee, a global giant in the titania industry. This relationship has been developing for some 4 years and it is gratifying that such an astute company with 20/20 visibility of our activities considers the current challenging financial climate a good time to invest in the solar industry. Berkshire Hathaway, another successful, and often counter-cyclical, investor has taken a similar lead. Certainly, much of the turmoil in the industry is related to poor risk management, rather than the excellent fundamentals that persist. At Dyesol we continue to focus on securing our future and delivering a technology that will be robust in terms of cost, durability and performance. Currently, we are exploring several mutually beneficial business development opportunities that fit this criteria. Tasnee is financially very strong and focuses on long-term wealth creation.
As we have recently highlighted in quarterly reports, the focus on risk management has resulted in cost cutting. We expect to stabilise at a monthly burn of around $600,000 based on lower head-count, lower business development expenditure and a stronger emphasis on material sales. In addition, to our suite of core DSC materials, Dyesol now produces and sells high tech conductive silver inks and bespoke epoxy sealants which allows greater commercial exploitation of IP in the absence of large-scale demand from our major projects. The appointment of a new sales manager, the release of a new ecommerce site and a 2013 product catalogue promotion due in May will lead this revenue drive.
At the project level, progress in discussion continues to work relentlessly towards commercialisation. During the next quarter significant updates are expected in relation to all three major projects - Tata, Pilkington and Timo. We have sometimes been optimistic on timing, but decisions at the multi-national level are largely beyond our control. The formal deadline for an announcement on commercialisation arrangements at Tata is July 31, having been revised from May 31 due to a slight delay to completion in 2011. What provides us with great confidence on a positive resolution to all such discussions is that the fundamental technology is responding to the key competitive challenges in a very dynamic market. In that regard, long-term R&D efforts at Queanbeyan and with the EPFL are beginning to translate into very meaningful and measurable results. With keen R&D focus in more recent months, breakthroughs in glass sealing and solid-state technologies appear imminent. Rather than seek lesser challenges and lesser commercial opportunities, Dyesol and its partners have persisted to meet the greater demands that BIPV presents - still the "holy grail" of the solar industry.
Importantly, we will not be distracted by the current poor performance of the share price or the unreasonable picture of our prospects that it paints. Shareholders should remain patient knowing that a vigilant Dyesol has survived where larger and better funded companies have failed.
Total operating and investing cash burn for the year to date was $3.2m. The Company net average burn rate (Sec.1.14) for the year to date was $358k per month including the receipt for the FY2012 R&D Tax Incentive rebate of $2.957m.
The third quarter net operating monthly cash flows (Sec 1.8) showed an average gross burn rate of $590k, assisted by overseas grant receipts of $264k, which is consistent with the last quarter burn rate of $620k. The cost reduction programme is beginning to have a considerable effect and exhibiting a welcome trend.
The Company received from Tasnee (The National Industrialization Company of Saudi Arabia) a cash investment of A$4m by way of a 15 month redeemable convertible note, convertible into Dyesol shares at 16.6 cents per share with a 0% coupon. Under the Subscription Agreement, Tasnee has the right to invest up to a total of A$20m in Dyesol during the initial 6 months exclusivity period, at 18 cents per share.
Dyesol's current assets at 31 March 2013 exceed current liabilities (current ratio of 2.8) with the cash reserves at 31 March 2013 standing at $3.4m. Trade and other receivables included an accrual of $1.42m of R&D tax rebates for FY2013. In addition, the Company has A$1.2m of CSIRO and A$4m of Tasnee convertible loan notes at the end of the period.
About DYESOL LIMITED
Dyesol is a global supplier of Dye Solar Cell (DSC) materials, technology and know-how. DSC is a photovoltaic technology enabling metal, glass and polymeric based products in the building, transport and electronics sectors to generate energy and improve energy efficiency. Dyesol partners with leading multinational companies who possess significant market share and established routes-to-market. The company is listed on the Australian Stock Exchange (DYE), the German Open Market (D5I.F), and is trading on the OTCQX (DYSOY) through its depositary BNY Mellon. Learn more: www.dyesol.com Subscribe to Mailing List and eNewsletter here.
About DYE SOLAR CELL TECHNOLOGY
DSC technology can best be described as ‘artificial photosynthesis’ using an electrolyte, a layer of titania (a pigment used in white paints and tooth paste) and ruthenium dye deposited on glass, metal or polymer substrates. Light striking the dye excites electrons which are absorbed by the titania to become an electric current. Compared to conventional silicon based photovoltaic technology, Dyesol’s technology has lower cost and embodied energy in manufacture, it produces electricity more efficiently even in low light conditions and can be directly incorporated into buildings by replacing conventional glass panels or metal sheets rather than taking up roof or extra land area.
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Media & Investor Relations Contacts:
Dyesol Headquarters Angela Geary, Dyesol Brand Manager Tel: +61 (0)2 6299 1592, email@example.com
Australia Viv Hardy, Callidus PR Tel: +61(0)2 9283 4113 or +61 (0)411 208 951
Germany & Europe Eva Reuter, DR Reuter Investor Relations Tel: +49 177 605 8804