In a news release, Eguana Technologies Inc. (EGT:TSX.V; EGTYF:OTCQB) stated that it achieved its second highest revenue quarter in Q3 FY20, and its revenues for the first three quarters of the fiscal year exceeded those of any whole year in the company's history.
"Our sales teams have done a tremendous job managing accounts and building our dealer network, which has resulted in a record order book inclusive of purchase orders and supply agreements, at $21 million," CEO Justin Holland said in the release.
Financially, fiscal year-to-date revenue totaled $6.62 million, and Q3 FY20 revenue was $2.18 million, each of which is up, respectively, 154% and 181% year over year. The third quarter gross margin from product sales and engineering services was $271,667, which compares to ($60,134) at the same time last year.
During Q3 FY20, the Calgary-based company more than halved its working capital requirements and shortened its cash flow cycle to 45 days from 120. It also improved payment terms with its main suppliers.
Operationally, Eguana noted that it launched its cobalt-free Evolve lithium iron phosphate product and the Evolve Hub in the U.S.; it will deliver the first of those units next month. The company grew its order book to $21 million with contracts throughout the U.S., Europe and Australia, its key markets. It received an additional $1.8 million in purchase order releases from Hanwha Q Cells.
The energy storage firm achieved California grid compliance and Rule 21 UL certification for Evolve in North America.
In Q3 FY20, Eguana expanded its dealer network by 22 new partners in Q3 FY20, taking its total to 186. Also, it completed its dealer agreements with Ozzie Sol.
The company noted that it finished transitioning battery procurement to Itochu and, thus, is better positioned to scale operations to meet demand. "Supply chain was a key focus throughout the quarter, which improves product availability in the fall time frame and significantly increases our supply chain capacities going forward," Holland added.
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