Random notes from the CFO's presentation just now at Craig Hallum:
(anything in "double quotes" are CFO's own words)
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Cost cutting measures are underway - expect to cut product costs in half!!! (already cost-competitive today)
3-port 30kW converter is certified today
125kW converte should be certified "within a month"
BTRAN : 5 issued patents, with 20-30 more pending
Rexell (owns Gexpro) = 15bn euros annual revenue
Kaco has 8GW of installed battery today, approached IPWR to white-label PPSA as their own product
Kaco is also at SPI in Anaheim this week and are showcasing an 'Ideal Inside' unit on-display!
Powin (China) ordered 4x125kW units for building storage container deployment
Have already sold products into ALL applications from slide 8 (so including EV charging, wind, solar PV, BESS, microgrid, etc.)
Going after BESS and microgrid first,as they are highest growth, but will get into all others eventually
One demo in a completely new market is underway, expect "results later this year"
Bus model is lean: even at $100m in revenue, will still be only 50 person company
Fully diluted: 12.2 million shares (6m float today)
Cash $20m, Debt: 0
Will see a noticeable decrease in cash use by early 2016
In Q4 will reveal the name of the secret partnership with solar installer (not yet publicly announced that they are going to enter the market)
Q&A
Rev growth until now is "relatively moderate"
"market devleoping now"
Customer are sharing their 2016 projections, and they are "aggressive ramps" ("50% per Q")?
With certification (in 1 month) of 125kW unit, will see increase Q4 backlog, and it will have a "meaningful impact on revenue in 2016"
Tech is scalable upward and downward
Could create a bigger product, could create a residential product
"dont'think residential market is ready" (but have prototype in lab)
Not decided what next product will be after 125kW and 125kW 3-port (Q2 2016)
To achieve target 30-40% margins (which excludes licensing), they need $20-$25 annual revenue, and would be cashflow positive at that point
If BESS forecasts are right, CFP will be "much before 2018"
Why no beleive in retail? Tesla does?
Tesla is good at marketing… image, but the numbers don't add up.
Have been approached by multiple companies about residential offering, but they aren't clear on specs…
It's easy to scale from 30kW down to 7/10kW, so can move quickly if/when they decide to move into retail.
Have paired up to 8 30kW units, can pair 2x125kW… not clear why need a bigger unit. Will consider if it MW scale is needed.
BTRAN costs:
Replacing 2 IGBTs and 2 diodes with 1 BTRAN is cost neutral, but big on efficiency savings!
Move from 96.5 to 99+ %: heat dissipation reduced (fans only), so can double the power density of their unit.
POC BTRAN scheduled for 1H2016, but commercialization not until 2017.
Their market is just beginning.
Ideal is in the "majority of the BESS installations" in California today
BESS has no entrenched players and high-growth.
New markets with bigger entrenched players will be tacked with BTRAN is out "when even a small company like ours can no longer be ignored"
