Eguana provides update on shipments and Jabil transition

“After completing financing activities at the end of the third quarter the Operations team expedited the supply chain through July and August to increase near term shipments. The expediting will depress gross margins in the short term however was necessary to meet the customer demand and expectation,” stated Eguana CEO Justin Holland. “We expect gross margins to improve through the current quarter with a reduction in raw material expediting and a return to standard material lead times.” Revenue from shipments not recognised in the fourth quarter will be recognised in the first fiscal quarter of 2020. Eguana also updated on its manufacturing transition to partner Jabil, confirming supply chain information transfer is complete and first units are expected to be tested in the next four to six weeks. “Our engineering and operations teams have been working with the Jabil team in Italy for several months ensuring all regulatory requirements and obligations are met through this transition and are looking forward to first shipments later this quarter. In order to meet demand through 2020, Jabil will be critical from a supply chain, margin, and capacity perspective,” Holland added. Evolve is a fully integrated residential energy storage system that includes the company’s proprietary power electronics system, LG Chem low-voltage battery modules, and a comprehensive user interface. The system is rated at 5KW AC output with a modular battery design based on a 6.5 kWh battery, which is scalable from 13 to 39kWh in storage capacity.