Eguana Files Interim Financial Statements & Provides Market Update - Seite 2

Trends in German Solar Self Consumption Market: EUPD, the leading German research institute for solar energy storage, has forecast continued growth in energy storage for solar self consumption. EUPD is forecasting 20,000 units in 2015, doubling to 40,000 units in 2016, with rapid escalation thereafter due to a combination of increasing electricity prices and declining battery costs. Significantly for Eguana, EUPD sees the retrofit market in Germany opening next year as early solar feed in tariff contracts expire and pricing drops to current levels. By 2016, the retrofit application in Germany will represent 50% of the market with 20,000 units installed annually. EUPD estimates that this will grow to more than 100,000 installations in 2018 of which more than 70,000 units will be for retrofits of existing installations.

Unlike most European products, which are suitable for new installations, Eguana's patented Bi-Direx design enables a highly efficient and very flexible "AC coupled" topology which works equally well with new installations and retrofits.

Operations

We continue to grow product sales revenues for solar self consumption markets in Europe. Product sales revenues for the nine months ended June 30, 2014 were $1,363,125 compared to $132,748 for same period in 2013. Q3 revenues were $477,410, up 20% from $396,357 in Q2, 2014, but below expectations, and below contractually committed volumes for the period. The lower revenues were due to reduced throughput at Sonnenbatterie's facility in June during transition to the new ECO product, which, in turn, required us to significantly reduce deliveries from our Durach facility during the month.
In June, Sonnenbatterie launched the market leading ECO residential product reducing the selling price point per kilowatt hour by almost 40%. Demand for the ECO has been very positive and our production levels are back up to two shifts at the facility in Durach. Estimated revenues for July and August currently total more than $680,000 as of the date hereof. Customer demand forecasts for Bi-Direx for the next 3 months beginning September 1, 2014, are for volumes valued at approximately $1.8 million with contractually committed take or pay orders Bi-Direx units valued today at approximately $1.4 million.