Polar Power Inc (POLA)

[southacresdave]

It's more a post on a private forum vs a friend. He didn't say exactly. He did mention that the thing about "turning orders down" was miscommunicated in the cc call. They aren't turning orders down. It was Tier 2 US telecom/smaller customers telling them they want to order, but don't want to wait and so they will go elsewhere for now. The goal isn't to hold off on orders if they come, but more to ramp up production to get backlog wait down.

----So in that respect, the Tier 1's are willing to wait, but want a discount. The others are probably willing to pay more, but don't want to wait. POLA obviously has to put the Tier 1s at the top of the customer list right now.


He did say that he was told labor as part of cost-of-goods was too high in Q4 from overtime and training employees. Raj said labor is 12-14% of COG now and they think they can get it to 7-8%. The two big factors in COG are the engine and then raw material (then labor). They think they can get raw material costs down more too even with the tariffs by ordering in bigger quantities in time. It was mentioned in the 10K about some kind of special metal they use in their generator windings. They can't go direct yet as their volume isn't big enough.