Day4 Energy Reports Third-Quarter 2009 Results

BURNABY, BC, Nov. 9 /PRNewswire-FirstCall/ - Day4 Energy Inc. (TSX: DFE), a
solar electric technology developer and manufacturer of superior performance
solar modules, today reported operating results for the third quarter of 2009.
"The trend we started to see at the end of the last quarter continued and
strengthened through Q3 resulting in one of the most significant periods of
revenue growth in the company's history," said George Rubin, president of Day4
Energy. "We are very encouraged by our 133% sales growth reaching $13.3
million for the third quarter. In the face of the past very volatile 12 months
we have taken clear steps to manage our working capital and preserve our cash
position, implement strategies to support our sales efforts including trade
insurance for customers and focus on managing our supply chain to utilize
inventory and manage production. We are pleased to see these efforts paying
dividends in the form of improved financial results, positive gross margin, a
stable cash position and improved sales."

Key events of the quarter and in the past month included:

- Advances in the solar project division with the announcement of the
initiation of a 2.4MW project with Gunther Heiss Solar GmbH & Co. KG
in Germany

- $0.5 million in funding from the National Research Council to support
Day4's activities

- The introduction of the Day4 60MC-I featuring the Guardian
Technology(TM) that dramatically improves the performance of the PV
modules when exposed to partial shading, snow, debris and other
external factors that, under normal circumstances, cause a
substantial reduction in power and energy yield.

- Approval from the Australian Patent Office on our patent for our core
Day4 Electrode(R) solar technology.

Q3 2009 FINANCIAL RESULTS

Worldwide Product Revenues

Third quarter revenues of $13.3 million increased by $7.6 million or 133% from
the prior quarter revenues and decreased by $ 18.4 million for the same period
in 2008. The increase in revenues compared to the prior quarter is due to a
relatively solid recovery in demand in our primary markets. The decrease in
revenue versus the same period in 2008 was primarily due to the impact of the
global economic recession and financial crisis that started in the fourth
quarter 2008 The annual period comparison is skewed because Q3 2008 was the
strongest in the history of the company and while the trend has been increased
demand over the past couple of quarters it has not reached the levels seen
prior to the start of the recession.

Gross Margins

The gross margin of $0.1 million for the third quarter compared to a loss of
$10.8 million in the second quarter 2009 and a gross loss of $0.5 million in
the same period in 2008. The higher gross loss in the prior quarter was
primarily the result of an inventory write-down and period costs relating to
low capacity utilization. There were no inventory write-downs in the third
quarter, however we did incur period costs of $0.9 million relating to fixed
overhead costs due to low capacity utilization at Jabil Circuits Inc. that
unfavorably impacted our gross margin.

Expenses

For the third quarter of 2009, general and administrative expenses were $1.9
million, relatively consistent compared to the prior quarter expenses of $2.0
million and the expenses in the third quarter of 2008 of $2.0 milion.
Sales and marketing expenses of $0.9 million for the third quarter 2009
compared to $1.0 million and $0.9 million in the previous quarter and the same
period in 2008 respectively.
R&D expenses in the third quarter increased to $1.0 million from $0.5 million
in the prior quarter and $0.7 million for the same period in 2008. The
increase primarily related to the costs associated with our Burnaby facility
that is now used almost exclusively for R&D purposes, following the transfer
of production to Jabil. All production equipment, personnel and facility
costs, with the exception of the Day4 Electrode wire production, have been
reallocated from production to R&D as we focus on the development of the Day4
Electrode and new products. Staff assigned to R&D was forty-one at the end of
the third quarter compared to nine for the same quarter ended in 2008.

Loss Per Share

The net loss for the third quarter 2009 was $4.2million($0.12) per share
compared with $14.1 million($0.38) per share for the prior quarter and $1.7
million($0.05) per share for the same period in 2008. The net loss for the
nine months ended September 30, 2009 was $21 million($0.57) per share compared
to $4.9 million($0.13) per share for the same period in 2008. Higher net loss
in the nine months ended September 30, 2009 compared to the same period in
2008 was mainly attributed to the inventory write-down, activities relating to
the start up of Jabil and fixed overhead period cost due to low capacity
utilization.

Cash and Short-Term Investments

At September 30, 2009, we had $21 million in cash and short term investments,
including restricted cash of $0.4 million, even with total cash and short term
investments of $21 million at June 30, 2009 and $26 million at December 31,
2008.Cash used by operations was $0.4 million for the third quarter 2009,
compared to $0.7 million for the second quarter of 2009 and $8.4 million for
the same period in 2008. Cash used in operating activities significantly
decreased from the comparable periods in 2008 through cost reduction programs
to manage working capital and preserve cash.
Detailed financial results and management's discussion and analysis can be
found on our website at www.day4energy.com or on SEDAR at www.sedar.com.

About Day4 Energy

Day4 Energy Inc. is Canada's largest manufacturer of high performance
photovoltaic (PV) modules for residential, commercial and utility scale
installations around the world. By fundamentally improving on the design and
assembly of solar modules, Day4 Energy produces unique PV panels of high power
density, increased lifetime and uncompromised aesthetic appearance. Day4
Energy partners with international technology leaders to develop and deliver
IEC- and UL-certified solar products to customers throughout Europe and North
America. Day4 Energy is listed on the Toronto Stock Exchange under the symbol
"DFE". For more information, please visit www.day4energy.com.

Conference Call Information

Day4 Energy's management will conduct a conference call at 8:30am (ET)November
9, 2009 to review the company's third-quarter financial results. The call can
be accessed by dialing 1-800-319-4610 (Canada and US) or 1-604-638-5340
(International) prior to the start of the call. Following the call a recording
of the conference call will be archived on Day4 Energy's website,
www.day4energy.com

Caution Regarding Forward-Looking Statements

This news release contains forward-looking statements that relate to our
current expectations and views of future events. These forward-looking
statements include, among other things, statements relating to our
expectations regarding our revenues, expenses, cash flows, operating
performance and future profitability. Forward-looking statements are
statements that are not historical facts and are generally, but not always,
identified by words such as "anticipate", "continue", "estimate", "expect",
"forecast", "may", "will", "project", "could", "plan", "intend", "should",
"believe", "outlook", "potential", "target", and similar words suggesting
future events or future performance.
The forward-looking statements contained in this news release are based on
assumptions, which include, but are not limited to, our successful
implementation of outsource manufacturing with Jabil; our ability to obtain an
adequate spread between our module average selling price and cost of raw
materials, including PV cells; achieving increased PV cell and PV module
efficiencies; expanding our existing product line; building the Day4 brand,
attracting customers and developing and maintaining customer and supplier
relationships; continuing our strong relationships with our suppliers;
effectively managing foreign exchange risks; protecting our intellectual
property rights and not infringing on the intellectual property rights of
third parties; timely processing by certification agencies of new products;
and complying with applicable governmental regulations and standards.
Such forward-looking statements are subject to risks, uncertainties and other
factors, including those listed in our Annual Information Form filed with
Canadian securities regulatory authorities, many of which are beyond our
control and each of which contributes to the possibility that our
forward-looking statements will not occur or that actual results, performance
or achievements may differ materially from those expressed or implied by such
statements. These risks, uncertainties and other factors include, but are not
limited to, the impact of general economic, market or business conditions;
risks related to the implementation of outsource manufacturing with Jabil; our
limited operating history; risks relating to the protection of our
intellectual property and intellectual property infringement claims by third
parties; our dependence on a limited number of PV cell suppliers; government
subsidies and economic incentives for PV power could be reduced or eliminated;
our ability to achieve higher PV module efficiencies; our dependence on a
limited number of customers and our lack of long-term purchase contracts;
demand for PV modules; technological changes in the PV power industry could
render our products uncompetitive or obsolete; unexpected warranty expenses;
fluctuations in exchange rates; product liability claims; compliance with
environmental regulations; and other factors, many of which are beyond our
control.
The forward-looking statements made in this news release relate only to events
or information as of the date indicated above. Except as required by law, we
undertake no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise, after the date on which the statements are made or to reflect the
occurrence of unanticipated events.

Day4 Energy Inc.
Consolidated Balance Sheets
As at September 30, 2009 and December 31, 2008
-------------------------------------------------------------------------

September 30, December 31,
2009 2008
$ $
(unaudited)

Assets

Current assets
Cash and cash equivalents 11,396,053 14,730,294
Restricted cash 413,430 11,085,230
Short-term investments 9,040,679 -
Accounts receivable 3,315,759 3,320,849
Investment tax credits receivable 600,000 600,000
Other receivables 2,135,163 1,511,301
Inventory 21,787,572 35,018,558
Prepaid expenses 416,313 379,429
Equipment held for sale - 2,704,913
------------ ------------
49,104,969 69,350,574

Property, plant and equipment 23,461,289 28,254,320
------------ ------------
72,566,258 97,604,894
------------ ------------
------------ ------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities 10,183,655 12,504,078
Taxes payable 830,000 830,000
Short-term debt 177,978 142,940
Deferred revenue 144,589 168,012
Derivative instruments - 2,157,218
------------ ------------
11,336,222 15,802,248

Long-term debt 1,143,521 1,143,521
------------ ------------
12,479,743 16,945,769

Non-controlling interest - 26,410

Shareholders' Equity

Share capital
Authorized
Unlimited number of common shares
Unlimited number of preferred shares

Issued and outstanding
36,679,366 (2008 - 36,679,366)
common shares 130,952,257 130,952,257

Contributed surplus 2,484,375 2,091,952

Warrants 2,279,890 2,279,890

Deficit (75,630,007) (54,691,384)
------------ ------------
60,086,515 80,632,715
------------ ------------
72,566,258 97,604,894
------------ ------------
------------ ------------

Day4 Energy Inc.
Consolidated Statements of Operations, Comprehensive Loss and Deficit
For the three and nine months ended September 30, 2009 and 2008
(unaudited)
-------------------------------------------------------------------------

Three-months ended Nine-months ended
September 30, September 30,
------------------------- -------------------------
2009 2008 2009 2008
$ $ $ $
Revenue
Sales 13,342,802 31,692,152 23,417,251 60,224,616
Cost of goods sold 13,234,391 32,148,373 34,549,494 60,032,368
------------------------- -------------------------
Gross (loss) margin 108,411 (456,221) (11,132,243) 192,248
------------------------- -------------------------

Expenses
General and
administrative 1,922,304 1,955,797 6,907,498 4,501,041
Research and
development 1,068,064 695,626 2,106,455 1,769,665
Less: Investment tax
credits and Government
assistance (34,020) - (34,020) (245,302)
Selling and marketing 887,009 856,122 2,508,558 2,798,162
Depreciation 562,236 131,409 775,061 360,789
Amortization - 71,054 - 213,164
------------------------- -------------------------
4,405,593 3,710,008 12,263,552 9,397,519
------------------------- -------------------------
Loss before undernoted 4,297,182 4,166,229 23,395,795 9,205,271
------------------------- -------------------------

Foreign exchange gain
(loss) 53,280 (466,277) 2,331,709 710,032
Unrealized gain (loss)
on derivative
instruments - 2,996,598 - 2,359,398
Interest and other
income 52,581 465,917 167,085 1,882,665
Interest expense (27,266) (61,177) (82,915) (61,177)
Royalty premium expense - (419,180) - (419,180)
Gain (loss) on disposal
of property, plant and
equipment (1,452) (88) 25,278 (88)
Write-off of plant
design costs - - - (18,980)
Gain on disposition
of subsidiary - - 24,677 -
Accretion expense (6,995) (41,664) (19,985) (138,436)
------------------------- -------------------------
70,148 2,474,129 2,445,849 4,314,234
------------------------- -------------------------
Loss before
non-controlling
interest 4,227,034 1,692,100 20,949,946 4,891,037

Non-controlling
interest - - (11,323) -
------------------------- -------------------------
Loss and comprehensive
loss for the year 4,227,034 1,692,100 20,938,623 4,891,037

Deficit - Beginning
of period 71,402,973 24,016,970 54,691,384 20,818,033
------------------------- -------------------------
Deficit - End of
period 75,630,007 25,709,070 75,630,007 25,709,070
------------------------- -------------------------
------------------------- -------------------------
Net loss per share
- basic and diluted 0.12 0.05 0.57 0.13
------------------------- -------------------------
------------------------- -------------------------
Weighted average
number of shares
outstanding - basic
and diluted 36,679,366 36,679,366 36,679,366 36,641,734
------------------------- -------------------------
------------------------- -------------------------

Day4 Energy Inc.
Consolidated Statements of Cash Flows
For the three and nine months ended September 30, 2009 and 2008
(unaudited)
-------------------------------------------------------------------------

Three-months ended Nine-months ended
September 30, September 30,
2009 2008 2009 2008
$ $ $ $

Cash flows from
operating activities
Loss and comprehensive
loss for the period (4,227,034) (1,692,100) (20,938,623) (4,891,037)
Items not affecting
cash
Stock-based
compensation 123,877 172,831 392,423 594,429
Accretion and
royalty premium
on IRAP-TPC loan - 465,282 - 550,901
Depreciation and
amortization 862,484 611,594 1,956,218 1,377,988
Gain on disposition
of pre-acquisition
assets - 3,610 - 3,610
Loss (gain) on sale
of property, plant
and equipment 1,452 88 (25,278) 88
Write-off of plant
design costs - - - 18,980
Gain on disposal
of subsidiary - - (24,677) -
Unrealized foreign
exchange (gain)
loss 10,205 (1,289,210) (379,611) 453,054
Change in value
of derivative
instruments - (2,996,598) (2,157,218) (2,359,398)
Deferred lease
inducement - - - (11,245)
Non-controlling
interest - - (11,323) -
Changes in non-cash
working capital items
Accounts receivable (1,856,793) (8,649,945) 1,468,191 (20,678,665)
Investment tax
credits receivable - - - 159,006
Other receivables 1,935,873 599,537 (664,541) 821,926
Inventory 9,140,832 4,643,977 13,230,986 (8,988,571)
Prepaid expenses (26,710) 125,762 (36,884) 145,511
Accounts payable
and accrued
liabilities (6,342,324) (460,689) (4,320,260) 5,176,061
Deferred revenue (31,790) 59,086 (23,423) (19,702)
------------------------- -------------------------
(409,928) (8,406,775) (11,534,020) (27,647,064)
------------------------- -------------------------

Cash flows from
investing activities
Purchase of short-term
investments - - (9,000,000) (8,000,000)
Proceeds from sale of
short-term investments - 13,900,000 - 29,900,000
Change in restricted
cash 3,055 987,450 10,671,800 (9,890,709)
Purchase of property,
plant and equipment (138,702) (6,124,582) (2,646,634) (23,790,657)
Proceeds from sale of
property, plant and
equipment - 8,975 8,213,638 8,975
Proceeds from sale of
subsidiary - net of
cash included in sale
of 29,098 - - 9,590 -
------------------------- -------------------------
(135,647) 8,771,843 7,248,394 (11,772,391)
------------------------- -------------------------

Cash flows from
financing activities
Proceeds from exercise
of warrants - - - 492,498
Proceeds from exercise
of stock options - - - 80,000
------------------------- -------------------------
- - - 572,498
------------------------- -------------------------

Impact of foreign
exchange on cash and
cash equivalents 576,364 400,596 951,385 (545,172)
------------------------- -------------------------
Increase (decrease)
in cash and cash
equivalents 30,789 765,664 (3,334,241) (39,392,129)

Cash and cash
equivalents -
Beginning of period 11,365,264 12,935,343 14,730,294 53,093,136
------------------------- -------------------------
Cash and cash
equivalents -
End of period 11,396,053 13,701,007 11,396,053 13,701,007
------------------------- -------------------------
------------------------- -------------------------

Supplemental cash
flow information
Cash paid for
interest 1,249 8,127 4,217 8,249
Cash received for
interest 1,315 317,146 19,778 1,693,204

SOURCE Day4 Energy Inc.

Therese Hayes, Head, Corporate Development, Day4 Energy Inc., (604) 296-0434,
thayes@day4energy.com; Agnieszka Pozniak, Media Contact, Day4 Energy Inc.,
(604) 297-0444, media@day4energy.com