November 16, 2006
By: by Erica Dart, DayStar Technologies
– November 14, 2006 – DayStar Technologies, Inc. (NASDAQ: DSTI), a developer and manufacturer of innovative CIGS Photovoltaic Foil™products, today filed its Form 10-QSB with the Securities and Exchange Commission reflecting financial and operational results for the three and nine months ended September 30, 2006. In addition, the Company will report on key developments and strategic initiatives in their first quarterly conference call scheduled for today at 4:15 PM ET.
“During the third quarter, DayStar accomplished a series of mission critical objectives. Our well-defined and realistic manufacturing rollout planremains unchanged, and we continue to execute it with discipline and focus,” stated Dr. John R. Tuttle, Chairman and Chief Executive Officer of DayStar Technologies. “As the only U.S. publicly-held, pure play, CIGS Company that has achieved factory production and customer shipments of discrete CIGS cells, DayStar is uniquely positioned to successfully compete and win a leading share of the fast growing solar cell market.”
Continuing, Dr. Tuttle noted the following key accomplishments that highlight the progress that has been made against DayStar’s 2006 milestones over the past several months:
Demonstrate commercial-scale manufacturing with Gen II product line:
“During the past quarter, we have transitioned our Gen II operation into the production mode, and achieved sufficient cell performance and production capacity to allow us to begin shipping cells to our partners. The Gen II line is now producing TerraFoil™ cells that are being used by our customers and partners to develop their own module assembly processes and to get their modules qualified and certified for use in their respective markets.
“Furthermore, we refitted the Gen II line with new equipment and modified processes, steadily advancing our yields to over 60 percent with continued improvement in cell efficiency and standard deviation within production runs. As we ramped up our Gen II production capability, we grew the manufacturing organization to 33 permanent full time employees. Through incremental processes we have built up to about 1700 cell starts per week, increasing overall cell performance, and are advancing toward our goal of ten percent efficiencies on this line.
Expand Gen III
program and ongoing Company operations:
“The Equipment Development Group in Santa Clara has completed the build-out of its facilities and the initial design modeling for our first Gen III™ platform. We now have 15 engineers and technicians working in that facility, and we have completed the first concept design milestone on our new platform. Once we have secured our next round of funding, we will be able to start ‘cutting metal’ on our Gen III™ tool. Once financing is in place, we anticipate that it will take 12 months from initiation of construction to full operation of the Gen III™ line at targeted capacity levels.
Enhance Company portfolio by expanding and fostering key relationships with strategic partners:
“We recently expanded our sales agreement with Blitzstrom providing for the opportunity to deliver up to 130 megawatts through the year 2010. We are also actively engaged in advanced discussions and negotiations with two other major module manufacturers, with whom we expect to sign agreements in the next few weeks.
“The second prong of our TerraFoil™ product strategy involves the use of our CIGS cells in non-traditional module form factors, including applications in Building Integrated Photovoltaics (BIPV). Our marketing and product development groups are working together on three distinct programs with other companies exploring opportunities for alternative interconnect and packaging schemes.
“Our marketing efforts have also resulted in DayStar being named in a U.S. government project funding $1 million for development of PV in Lighter than Air Vehicle applications. We anticipate resuming our LightFoil™ development when the funds become available in early 2007.
“Our financial results for the quarter were highlighted by the successful ramping up of the manufacturing operation and the booking of initial revenue from product shipments. As a result of this ramp-up, the continued funding of development on the Gen III™ process and significant capital equipment expenditures, we saw cash expenses increase during the quarter. In addition, decreasing share value led to the escrowing of $3.0 million. As a result of cash constraints, we have reduced our burn rate since September 30, 2006 back to second quarter 2006 run rates and are considering reducing these further to or below first quarter 2006 rates.
“Most importantly, we are working on bringing in new capital through traditional equity means. Although we have explored a range of new financing opportunities, including follow-on public offerings, we have experienced various challenges in effectively aligning the restrictions inherent in our current capital structure with the requirements of those opportunities. With that in mind, DayStar has retained Tejas Securities Group to act as financial advisor to help investigate various options that may be available to us,” concluded Dr. Tuttle.
DayStar will host a teleconference this afternoon beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the Company’s financial and operational progress and other related business matters. The conference call can be accessed via telephone by dialing toll free 800-240-7305 or via the Internet at www.daystartech.com. For those unable to participate at that time, a playback of the call will be available for 90 days on www.daystartech.com.
About DayStar Technologies, Inc.
DayStar Technologies, Inc. is an emerging leader in low cost, high efficiency Photovoltaic Foil™ that converts sunlight into energy. The Company manufactures CIGS solar cells, which are deposited on flexible metal foils using production processes adapted from computer component manufacturing. As an alternative to wafer-silicon solar cells, DayStar believes the unique combination of its CIGS solar cell design coupled with proprietary manufacturing processes on flexible metal substrates could substantially lower costs and remove deployment barriers currently limiting large adoption of solar energy. For more information on the Company, please visit http://www.daystartech.com.
SAFE HARBOR STATEMENT: This press release may contain forward-looking statements that are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or future financial performance and involve known and unknown risks and uncertainties that may cause actual results or performance to be materially different from those indicated by any forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "forecast," "may," "will," "could," "should," "anticipate," "expect," "plan," "believe," "potential" or other similar words indicating future events or contingencies. It is important to note that the Company's actual results could differ materially from those projected in forward-looking statements. Factors that could cause the anticipated results not to occur include, among others, risks related to financing; uncertainties in development, manufacturing and competition; and the risk factors listed from time to time in the Company's reports including but not limited to, the annual report on Form 10-KSB and Quarterly Reports on Form 10-QSB.