Free 7-day Trial
All Articles and Columns »

DayStar Technologies Inc. Reports Operating Results (10-Q)

August 23, 2010 | About:
insider

10qk

18 followers
DayStar Technologies Inc. (DSTI) filed Quarterly Report for the period ended 2010-06-30.

Daystar Technologies Inc. has a market cap of $7.55 million; its shares were traded at around $1.8 with and P/S ratio of 125.91. DSTI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
This is the annual revenues and earnings per share of DSTI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DSTI.


Highlight of Business Operations:

Research and development expenses. Research and development expenses were $2,564,357 for the three months ended June 30, 2010 compared to $4,279,990 for the three months ended June 30, 2009, a decrease of $1,715,633 or 40%. The decrease is primarily due to the cost savings measures implemented in 2009 and 2010 including a reduction in our workforce as well as a reduction in expenditures for materials, supplies and consultants. During 2009, we prioritized our development efforts to focus on our core CIGS technology and related development in to order continue to advance our product toward commercialization while we seek additional financing and strategic partnerships. Also, in July 2009, we sold substantially all our tangible assets at our Halfmoon, NY facility to Veeco Compound Semiconductor, Inc. (“Veeco”) for $1.925 million and Veeco hired the 18 research and development employees located at the facility. This transaction further reduced our research and development expenses for the three months ended June 30, 2010 as compared with the same period in the prior year. The decrease in research and development expenses during the three months ended June 30, 2010 as compared with the three months ended June 30, 2009 was partially offset by an increase in share-based compensation for research and development personnel of $366,687.

Selling, general and administrative expenses. Selling, general and administrative expenses were $1,090,805 for the three months ended June 30, 2010 compared to $1,095,949 for the three months ended June 30, 2009, a decrease of $5,144. During the three months ended June 30, 2010 we experienced a decrease in selling, general and administrative expenses primarily due the cost savings measures implemented during 2009 and 2010 including a reduction in our workforce as well as a reduction in outside consultants and professional fees. However, the decrease in selling, general and administrative expenses during the three months ended June 30, 2010 as compared with the three months ended June 30, 2009 was offset by an increase in non-cash, share-based compensation for selling, general and administrative personnel of $542,196.

Research and development expenses. Research and development expenses were $5,053,185 for the six months ended June 30, 2010 compared to $9,166,094 for the six months ended June 30, 2009, a decrease of $4,112,909 or 45%. The decrease is primarily due to the cost savings measures implemented in 2009 and 2010 including a reduction in our workforce as well as a reduction in expenditures for materials, supplies and consultants. During 2009, we prioritized our development efforts to focus on our core CIGS technology and related development in to order continue to advance our product toward commercialization while we seek additional financing and strategic partnerships. Also, in July 2009, we sold substantially all our tangible assets at our Halfmoon, NY facility to Veeco Compound Semiconductor, Inc. (“Veeco”) for $1.925 million and Veeco hired the 18 research and development employees located at the facility. This transaction further reduced our research and development expenses for the six months ended June 30, 2010 as compared with the same period in the prior year. The decrease in research and development expenses during the six months ended June 30, 2010 as compared with the six months ended June 30, 2009 was partially offset by an increase in share-based compensation for research and development personnel of $691,294.

Selling, general and administrative expenses. Selling, general and administrative expenses were $3,333,070 for the six months ended June 30, 2010 compared to $2,840,115 for the six months ended June 30, 2009, an increase of $492,955 or 17%. During the six months ended June 30, 2010 we experienced a significant decrease in selling, general and administrative expenses primarily due the cost savings measures implemented during 2009 and 2010 including a reduction in our workforce as well as a reduction in outside consultants and professional fees. However, the decrease in selling, general and administrative expenses during the six months ended June 30, 2010 as compared with the six months ended June 30, 2009 was offset by an increase in non-cash, share-based compensation for selling, general and administrative personnel of $1,253,323.

On April 27, 2010, we and our landlord, BMR-Gateway Blvd., LLC (the “Landlord”), had a court-ordered mediation with the general contractor responsible for the leasehold improvements at our Newark facility, Gordon Prill, Inc. (“Gordon Prill”) and several subcontractors for the project in order to settle a dispute alleging monies due of approximately $1.6 million, breach of written contract, foreclosure on mechanic’s liens, and statutory penalties under California Civil Code sections 3260 and 3260.1. On May 11, 2010, we entered into a Settlement Agreement with Gordon Prill (the “Gordon Prill Settlement”). Under the Gordon Prill Settlement, the Landlord has agreed to pay Gordon Prill $1.2 million in cash and we agreed to issue Gordon Prill $300,000 in common stock. On May 14, 2010, we issued 162,162 shares of our common stock to Gordon Prill in full payment of this $300,000 obligation. In exchange for the above, Gordon Prill will provide to us a full release of all mechanics liens against the Newark, CA facility. In addition, Gordon Prill will also provide us a dismissal with prejudice and a full lien release from all Parties who have asserted claims in the action. The Gordon Prill Settlement also provides for a waiver of all claims involved in the action, both current and future, and extends the benefit of the waiver to Gordon Prill’s subcontractors who provided labor, services, equipment, and materials during the initial construction phase of the Newark facility.

On September 9, 2009, the Landlord filed an unlawful detainer action in Superior Court of the State of California in Alameda County, CA against us alleging damages in the amount of $838,078 and to recover possession of the premises. On December 17, 2009, we executed a Settlement Agreement (the “BMR Settlement”) with the Landlord in the above action. According to the terms of the Settlement, we will pay the amount of base rent proportionate to the amount of financing (the “Proceeds”) obtained in excess of Two Million Dollars ($2,000,000) gross up to and including Three Million Dollars ($3,000,000). For instance, if we obtain (a) less than or equal to Two Million Dollars ($2,000,000) in Proceeds, then we shall not be required to make payments of Base Rent under the Lease at that time, (b) more than Two Million Dollars ($2,000,000) in Proceeds, then we shall be required to make payments of Base Rent in the following amount: the quotient of (i) the product of (A) the amount of Base Rent otherwise payable pursuant to the Lease times (B) the difference between (1) the amount of aggregate Proceeds minus (2) Two Million Dollars ($2,000,000) divided by (ii) one million (1,000,000).

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 1.5/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide