News

DayStar Technologies Issues First Quarter Results Reflecting New Commercialization Plans

Halfmoon, NY – (PR Newswire) – May 15, 2007 – DayStar Technologies, Inc. (NASDAQ: DSTI), a developer and manufacturer of innovative CIGS photovoltaic products, today filed its Form 10-QSB for the first quarter ending March 31, 2007 with the Securities and Exchange Commission, highlighting results and outlining a new commercialization and product plan to accelerate revenue generation.  Dr. Stephan DeLuca, CEO of DayStar Technologies, provided the following summary from the filing:

New Commercialization and Product Strategy – Monolithic CIGS on Glass

“Our goal in transitioning from a development stage to a commercialization stage company requires a path that accelerates near-term revenue generation. During the first quarter of 2007, we successfully achieved the development milestones required to design and build our first commercial manufacturing line.  Through our proprietary Gen-III™ deposition process, we have reproducibly achieved greater than 10 percent cell efficiencies on large area solar cell devices. This milestone demonstrates a highly scaleable deposition process capable of the performance benchmarks required to most effectively reach successful product commercialization.

“We engaged in an intense market analysis, including discussions with our strategic partners and customers. Combining our assessment of the current market opportunities with our recent technical advances and manufacturing options has led us to the conclusion that we will build our first commercial manufacturing line to produce monolithically integrated CIGS modules on plate glass substrates.  The resulting product has the potential to achieve the cost and performance benchmarks required to meet our customers’ needs in the shortest timeframe. These commercialization plans are contingent upon new financing for initiation.

First Commercial Manufacturing in Santa Clara, California

“If we are able to secure funding, we expect to build a 25 megawatt production line in our Santa Clara, California facility. We expect to operate this line to produce complete monolithic CIGS modules for sale to both our current and future customers.  To facilitate this operation, we intend to relocate select engineering and administrative functions, as well as our headquarters, to our Santa Clara facility to assist in our commercialization efforts. Bob Weiss, Vice President of Advanced Technologies, is being promoted to Chief Technical Officer to spearhead this important step in our transition to commercialization.

“We have reviewed this strategy carefully with our primary customer, Blitzstrom GmbH, who has agreed to this product focus and has recently amended their sales agreement to extend through 2011 to include the purchase of monolithically integrated CIGS glass modules.

DayStar Application Center to Remain in Halfmoon, New York

“The market for a flexible CIGS module is viewed as a large potential market for the future.  However, there still remain significant technical challenges in product packaging that inhibit early market penetration.  We have made significant progress to-date and will continue to work with our strategic partners to overcome these challenges for future product diversification.  To accomplish this, we will transition our Halfmoon, New York facility to focus on the continued development of a variety of future product applications.  The state-of-the art equipment and intellectual capability that remain in New York will form what we will now call the DayStar Applications Center targeted at continued development of future flexible product opportunities.

“The transition to commercialization for our Gen-III™ facility in California requires a reduction of our New York-based resources as we focus our efforts on building our first large-scale production line. We will continue to work closely with our strategic development partners and local stakeholders to fully leverage the capabilities established in our New York facility.  The new DayStar Applications Center will allow us to maintain momentum in our efforts to address emerging markets with an array of novel form factor products enabled by our unique flexible CIGS TerraFoilä solar cells,” concluded Deluca.

Quarterly Financial Results

DayStar announced in the 10-QSB filing net losses of approximately $17.9 million for the three months ended March 31, 2007. This amount primarily consisted of certain one-time costs associated with debt restructuring, $1.0 million of which was paid in cash, and $12.4 million in non-cash (stock).  Operating expenses were approximately $3.7 million (averaging $1.2 million monthly during the quarter). The Company also commented that all funding received to date has been utilized to maintain the monthly operational cost of research, development and administrative functions while in the development stage of business.  

The 10-QSB should be read in conjunction with the Company’s 10-KSB, which provided commentary on financial risks, uncertainties and other factors which could affect the market price of DayStar's securities. These risks and uncertainties included a going concern statement by DayStar's independent registered public accounting firm emphasizing DayStar's need to raise additional capital during 2007 to complete its development, manufacturing and commercialization goals.  The 10-QSB, which includes financial statements and other documents filed by DayStar, can be found on file with the SEC at www.sec.gov or by contacting Elite Financial Communications Group at 407-585-1080 or dsti@efcg.net.

Chief Financial Officer Appointed

On May 11, 2007, the Company announced the appointment of Raja Venkatesh as Chief Financial Officer.  Raja brings over 20 years experience in general and financial management, strategic planning and execution for a range of semiconductor and technology firms.  Raja will assume financial management of daily operations and will lead Company efforts in securing the financing required to affect the new commercialization strategy.

 

Safe Harbor Statement

This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future, " "plan" or "planned, " "will" or "should," "expected," “intended, ” "anticipates," or "projected." You are cautioned that such statements, including statements concerning the Company’s beliefs regarding plans to build a production facility in Santa Clara and its ability to meet its financial needs, are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including risks that its products may not achieve customer acceptance or that they will not perform as expected, and other risks identified in our annual report on Form 10-KSB and other filings with the SEC. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof and DayStar Technologies, Inc. undertakes no obligation to update such statements.