Plunging revenue is set to spur layoffs at Day4 Energy Inc. (TSX:DFE) as the solar panel maker continues to struggle.
Day4Energy announced March 30 that its revenue sank 83.7%, from US$57.7 million in the fourth quarter of 2010 to US$9.4 million in the fourth quarter ended December 31.
That contributed to 2011 revenue, at US$66.1 million, being down US$100.6 million from US$166.7 million in 2010.
Management plans to reduce staff by an unspecified amount, the company announced. Last year, the company laid off 30 of its 200 staff.
“2011 was a very challenging year for the entire PV (solar panel) industry,” said Day4 Energy CEO George Rubin.
“Unfortunately, we are not immune to these challenges. Sudden adverse changes in government policies towards solar energy in some of the key markets have combined with global PV hardware oversupply to create perhaps the most difficult PV market since the global financial crisis of late 2008.
“What is further concerning is that the outlook for 2012 appears to be equally volatile.”
The news pushed Day4 shares down to $0.065, near the 52-week low of $0.06. One year ago, shares traded at about $0.40, whereas two years ago, they traded at about $0.80.
The company was founded in 2006 by local technology luminary and MacDonald Dettwiler and Associates Ltd. cofounder John MacDonald. His company suggested Monday that it too may have to lay off workers, thanks to a lack of funding in the federal budget for a critical program.
