Canadian company Eguana has stated that it has been unsuccessful in reaching an agreement with Sonnenbatterie on extending the supply of Bi-Direx power control systems and hence, will be winding down its Bi-Direx deliveries to Sonnenbatterie over the balance of the quarter. The company will then seek to focus its resources on the U.S. market. Here, Eguana is seeing a rapid demand growth for its residential AC battery which it launched last month.
Eguana announced that the transition to selling the higher value AC battery in the U.S. will result in reduced shipments in the near term until U.S. deliveries begin to ramp later this year. Revenues per unit, as well as margin contributions on the AC battery sales, will be materially higher compared to sales of Bi-Direx units. The transition will call for more working capital and thus, Eguana is already in talks with potential debt lenders to meet this demand by the end of this quarter.
"While we were aware of competitive concerns with respect to the introduction of our AC Battery, we are disappointed with the outcome of negotiations, but wish Sonnenbatterie well," said Michael Carten CEO of Eguana.
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