Hypothetical....They have $19M backlog as of Nov 26th. That means 8 full weeks have passed through the quarter. Let's just hypothetically say they have done $7M to this point. I think it's more than they have, but let's just say it is. I'm sure though they are cranking out a decent number as there is no way that US telecom companies are piling on the orders more and more if they aren't delivering product at a solid level now. Say they finish with another $5M in orders in the last 5 weeks---a bit higher rate since they have two fully functioning lines. That would give them $12M for the quarter and, here's the thing, leaves them with $14M in backlog. That assumes no more orders for the quarter which may be wrong.
This is my thing.....how do they take on big boosts in international sales if they have backlog that will be close to max they could do in Q1? The second caller on all the cc calls (former analyst who helped in the IPO) keeps asking about Malaysia and the "big" opportunity there. He's done it like 2-3 calls in a row. The company even mentioned it in their 10Q. What about Sri Lanka that they keep saying could lead to large orders? What about Africa or Australia? How do you take on something like those when you are rolling into Q1 with $14M in backlog?
Correct me if I'm wrong, but, imo, they are either cranking out more in revenue in Q4 or else they are building up capacity to deal with $15M+ quarters already. U.S telecom isn't putting in orders for 8 months from now. Imo, this backlog is being delivered in 4-5 months at most. As such, they need to be able to deliver these orders PLUS take on anything international tosses at them.
The opposing argument could be that they have lagged in Q4 in orders and that's why the backlog is growing. However, why would AT&T and T-mobile keep putting in order after order to POLA if they aren't proving themselves this quarter in delivering? Those two companies could easily just go to Generac and take an AC generator. Yes, it may not be as efficient, but if POLA isn't delivering than that is better than nothing. Imo, POLA is getting orders because they are proving themselves this quarter at a rate that is good enough to show they can do it. They are then showing they can ramp it up even higher with the second line now too.
It still makes me wonder what they are planning for 2019 in terms of revenue possibilities.
