We have discussed this before and yes, from Andalay's standpoint there is no profit in panels. They are too small. Canadian Solar returns as good profit on a large volume. Canadian solar typically runs around 20% gross, and returns over a dollar per share. These larger companies have no need or desire to reinvent the wheel. If Andalay has a product that increases sales or margin then they will pay for it. But, they need to be sure before committing to the costs associated with the change. They need to test, and to get feedback from their customer base. They need the tests and certifications. Hyundai has gone as far as manufacturing a large number of the Andalay panels, and have hinted at much larger volumes at the next step. They are far along in the process and will pave the way for other large manufacturers.
Listen to the conference call. Steve said that they have been working on the Hyundai deal for a year. That means they were very deep into the process before they issued the first PR. Much of the cost of this last year has been the testing and certification process, and the patent process. Now that they have achieved these milestones, they will be freed to move to the next level.
