Replies to post #581 on Polar Power Inc (POLA)

[wadirum1]

Here are the relevant bits from the transcript, starting with reporting some numbers:

Backlog at the end of Q3 2018 was $11.5 million compared to $5.8 million at the end of Q2 2018. As of November 9th, our backlog has increased to $15.2 million. A significant portion of the growth is a result of production orders from two of our Tier 1 telecom customers and this validates the strong product demand trend, mainly from our U.S.-based telecom customers.

and Zavala adds this:

We believe that the majority of our backlog will be shipped within the next six months.

Then an analyst asks a question, and they seem to tighten the 6 month window down a good bit:

Craig Irwin

Good evening and thanks for taking my questions. So, the $15.2 million in backlog is a big number. You did see customers placing those orders. Luis, you mentioned that the majority of this will ship over the next six months. Do you have visibility you can share with us on what portion is likely to ship before December 31st?

Luis Zavala

I said six months?

Rajesh Masina

Six months from September 30th.

Arthur Sams

Craig thanks for the question. We are not providing guidance and I believe that answering your question would be basically guidance. But a significant amount of that backlog will be shipped in Q3 -- I mean, Q4.

Craig Irwin

So, a significant portion will be shipped.

Luis Zavala

Yes.

So, the actual Sept 30 backlog was $11.5M. And then there's this bit, which is what Southacredave mentioned. I agree that maybe Masina is slightly qualifying Sams's optimism a little or providing a bit of perspective:

Rajesh Masina

So, Craig, let me add -- this is Raj, let me add to Luis' point there. One of the main reasons that we saw a big spike in that backlog member also is because of these telecom companies have budgets that expire on December 31st so they have to receive the product before the 31st. So, we're doing the best we can to ship as much product as we can. Obviously, the supply chain and the new factory and everything has to cooperate, so it's been production hell for now.