Plug Power (PLUG) 5 Mar 202019 Q4 Earnings call transcript

Company Profile

Participants

Teal Hoyos	Director, Marketing Communications
Andy Marsh	Chief Executive Officer
Paul Middleton	Chief Financial Officer
Chris Van Horn	B. Riley FBR
Eric Stine	Craig-Hallum
Colin Rusch	Oppenheimer & Company
Jed Dorsheimer	Canaccord Genuity
Amit Dayal	H.C. Wainwright
Stephen Byrd	Morgan Stanley
Craig Irwin	Roth Capital Partners
Jeff Osborne	Cowen and Company

Call transcript

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Operator

Greetings, and welcome to the Plug Power Fourth Quarter and Year End 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Teal Hoyos, Director of Marketing Communications. Thank you.

begin. may You

Teal Hoyos

by year-end Reform by and investors. our forward-looking I like that the important be would We forward-looking is provisions [Technical contained it of statements everybody earnings expectations XXXX. that future begin in covered to statements reminding these Securities include communicate safe this to to harbor intend for Litigation Difficulty] Private forward-looking call. the Act call to statements. believe will We

to unduly from rely not risks to of our other to forward-looking as investors SEC. well statements limited actual involve Risk not However, as discussed including, annual are time XA result we XX-K Item they Factors most from filed on and results with as and because reports cautioned but a and factors, various may those the time risks and uncertainties, report differ uncertainties under materially recent on discussed Form

only are this any in update speak expressly date disclaim forward-looking as obligation the we statements any and under after statements and forward-looking not any made, These obligation of statements call. to the which are

in today’s presentation will also refer available Definitions of this to accompanying In these non-GAAP call, measures are non-GAAP financial call. financial certain we measures. the

I like point, Marsh. turn over the call Plug this At would Power's to to CEO, Andy

Andy Marsh

EBITDA. for XXXX just and gross me Paul fourth quarter Teal since let The we brief few years be our were you, updated conference you fourth January. I record for remarks a everyone But and and will today call. questions. items joining provided Thank thank quarter and My billings take and year-end highlight in before an

million $XX.X Power in the fourth million $XX.X of billings; gross Plug quarter, achieved For company the EBITDA. had

year's target met and $X target call results in in the XXXX. exceeded in financial to business $XXX billion I year, this achieve demonstrates of believe the and far our our viability billings our the $X.X EBITDA achieving million. of breakeven EBITDA company billion For gross revenue

meet billings gross large supported EBITDA. over million speak, backlog orders. $XXX over as expect we have we and year. two in we three supported Today, to in is $XX XXXX, by recent For the backlog The million customers require pedestal by XX%

provided letters highlights and events. investor more [indiscernible] for XXXX expected Our XXXX

any are have. may now happy Paul analysts to answer and questions the I

Operator

Thank first the with Van proceed B. question you. Our [Operator of with Instructions] Chris from FBR. question. line comes Riley Horn your Please

Chris Van Horn

Good call. morning Thanks my everyone. taking for

Andy Marsh

Chris morning Good

Chris Van Horn

and impacts about is see since time you there spoke guess a there? has I think on So, news business we coronavirus been anything the to to just there if if any last macro level or some your wondering around

Andy Marsh

X but be week in a Good prepared are I and monitoring to And World that questioning We most supply X advices appropriate you been of another issues has was chain. for we authority. us for we saw The at disruption of our key to many China, the the Organization, really Chris. of are time. the know following CDC working Chinese like the moment operating them companies Health see over first suppliers are all in week question. our

have chain us back don’t dependencies expect don't in and their with continue changes similar experience. to We’ve revenue and that issues our our be in to see for announcement up to it any the but other monitor, reports key also We’re everybody accelerate. the year. and seen no beginning we’ll impact functioning to We quarter supply Like else, to seems customers. we China is impact suppliers any tracking our first the having and on the are

Chris Van Horn

that bit know Lightning and to you're about there a going color. Okay. part maybe you for role Got it. play Thank little more you’re then, anything we’ve with Systems, announced last since And spoke, obviously and that that more detail you you what partnering partnership?

Andy Marsh

Sure.

of number pedestal as we So, a you in some with customers we of them have Lightning. that and Chris, common know have

they in some half the We’re will of issues with great they’re vehicles, products start for course identified thinking of put them some integration, class and what the electric sell class which electric road the the into you and in experience range on do battery with truck X system a the customers providing now will modules, have to products you year about and coming if fuelling the we’ll and when these some had associated and cell weight. stacks, engine be the X is working that of extending fuel deal the – vehicles

Chris Van Horn

it. Got

what for Okay. pretty have, a if of the maybe remind of and you strong year. pipeline the in And half look I'm Please Obviously, could back me as is XXXX, going going bulk like? I that to growth, of through there. looks us correct you're to come then we guiding the you’re wrong think

update know the you’ve is does certain to as what cadence look know Just highlighted, see past the in pipeline any announcements coming, and like that you you well? there you

Andy Marsh

for in today never better We’ve position. with a Chris. the in-house targeting sitting XX% million been year We're $XXX the delivery. what already of here for Sure, we’re

at year, third those very both actually happening say with So, deployments be look would will we good quarters. I this of in many quarter when and that the second

of seeing close out quarter, probably that year, the will think the first it XX% be bit coming deliveries be the of of front-end So, to I a second XX% more the year. half our know for especially to you loaded, would

the than announcements, business our we’re we of another pedestal would So, doing for obviously as in we’re comes on-road material vehicles to our bigger outlined in only coming associated see we seen. plan hydrogen, good expect five not year. and hydrogen, in expansion year handling to and with we expect targeting customer it the we’ve numbers When work have deal is today traditionally

Chris Van Horn

Thank Okay. much you for time this morning. so the

Andy Marsh

Chris. Great,

Operator

you. Thank

question. Stine question next with Please Our our Craig-Hallum. is proceed from with Eric

Eric Stine

Andy. Hi,

Andy Marsh

Good Eric. morning,

Eric Stine

of XXXX, you’re this on in in the think number just about but the do the see just mean how in to year start you I an pedestal customer terms and per Depot I know starting speculated we call wanted you more view Home the third, or should you of So, know context details that mega customers? as Walmart and you a to be wondering clearly gave customer opportunity it light same guess of with get I to here, Amazon. you overall other two overall those and kind you just expect do I them either the in that

Andy Marsh

will how simply for same – the out Amazon Great Walmart Eric, to very will with the as years question, over products same them, range answer have roll the they in basis. our pedestal same the customer. and plans next and annual and Walmart, plans Amazon goes and yes. we is, an about the shared with X years X be on Like And

Eric Stine

Got it.

the big is forward you’ve and you turning lot of Okay. got and strategy after Maybe interest, you that in expect I talking on-road little a it something what or mentioned forward, to is program to about going know some plan to figure with a go trying just that they their do is going the you bit, is mentioned that out been of have revives StreetScooter that a seeing party? press other with on that think you opportunity kind pause StreetScooter,

Andy Marsh

program, really financial look I about, we’re what them, press sorry that end next continue no to of but they’re clear StreetScooter been remaining will so are and for we stepping difficulties steps others their that to sorry work same back you choice, look at and has to the contact customers. continue vehicle to we’re think the know battery opportunities encountering electric but know, whether is I with those understand kind work have it pretty be and You see with the

Systems, vehicles number rather we full detailed a them activities another the leverage just we’re with announcement on think with about equipment. not equipment with our question I system at especially looking a are you and testing with but saw I Eric, about step a at. notice how support We one ground to do no my road, office was forward ongoing, left and negotiations it continuing to going pedestal customers, know are discussions, we’re have you recent our we today areas, first of we’re today, maybe and ground other When pursue and think about looking other OEMs support ProGen how deployment on I of large and back Lightning that,

XXXX have disappointed and but going and about really aviation, performance, are and long-term, word you large activity power, other for pause, up year's beyond. we’re more it see to StreetScooter from going back stands in We the does scale no that this know the have and impact which along no activities we I the some emphasize all on impact would activities like with

Eric Stine

Good.

could an be targeting one just you’ve just on updated maybe last your update, thoughts Maybe great? hydrogen an just expansion of and that for gas something know would player us Okay. strategies, so give I you there been with some an of kind industrial me or

Andy Marsh

clear it we’ll half So, being know pretty of to the Eric, at XX hydrogen. as that more than of were look you looking have is half that by day. be we that Power ourselves We a XXXX be tons we’re and generating to Plug green selling symposium

more time includes really as green. we with more it and fuel in that [Tim we spend We’re and will expect engaged probably hydrogen the that I’d on how say and actually that to electrolyzer I generate by engaged well hydrogen team that half the industrial be years, the have just than and gas more with that half cells ourselves the more coming with have do many as as companies position Cortez] I today, with I be stakeholders others, companies, hydrogen over the will led and clear than

Eric Stine

Got for it. Thanks that.

Andy Marsh

welcome. You're

Operator

Thank you.

Oppenheimer from with is question & next with Colin Our Company. proceed question. Rusch Please your

Colin Rusch

you so guys. much Thank

Andy Marsh

Good morning, Colin.

Colin Rusch

Hi.

look book the of would guys, you customers about you little with see but love for the can handling, of a color supplement you and concentrated the I layer that, shorter-term material over like high-profile and that revenue? on road pipeline but about little a understand next the into activity the you’re appreciate what we through excited growth down you how know at looking can to that that obviously in have smaller opportunity order customers, these We’re flowing you and bit the bit, talk but

Andy Marsh

about never a others information Good customers had stronger filters think product, that down so question when that to Colin. positive I and you have for technology demand the the and being Amazon customers. Walmart really We’ve like

size, interest actually mainly Over the of manage the almost the because being all double force inbound our these months in able customers. five convert and we’ve help past to four, sales expanded

directly position positioning looking in ENGIE, our through products but go We we’ve back have activity smaller some to not about networks like Chicago areas talked the of in products, we’ve our we’re for partnerships talked we’ve Europe products. to about positioning North that the – setting channels. We’ve specifically across the the here there of a customers; help with and only in them America up number to sell we've independent are some country of Detroit to and dealer been

rather a book. have add also, feeling though additional XXXX do We add that haven't customers I coming I see, Europe. we our customer, the to smaller that, we that should beginning ambitious and on need will it goal lots think year touched in activity see you over but and today to of also, Colin for we help pedestal an is

and our to which few So, outside have United with we’ve this because grow of help here will starting U.S. do business. Europe much them we’re in better had States, of customers success the in pedestal also the position deployments positions the in

Colin Rusch

in in seems be like I your on some the know finance of then And is will you position I capital agreements pieces you or for of guess one that of close PPA might terms of sources know and capital? is, you are Paul, update That that, be on reduce be the and of some capital, to this paper one the able the of the to structured just You of give do given guys some how side, of optimize you can cost think things you rate a helpful. other how us soon environment? those especially refinance the given to cost know, progress an

Paul Middleton

our this and you increasing balance we’re, my cash agree, strengthening with positive pipeline I us. options year or I guidance year's and to this closing factors of into in position fund Colin. think are that positive EBITDAs, to year and to the the XXX year where close availability million Thanks with sheet know EBITDAs we’re solidly that use on liquid could the I are closing moving Yes. that driving

us year. the that move calls than inbound are kind the through improvements scale terms near-term. had I in that more before, on course capital something good it should success And, to so that the of the in of have reduce players full-time think up translating moving ever in and leverage certainly as power that I you into focused to we I’m in cost of optionality structures scale and of the from term we’ve near see we news, and of capital begets success envision and

Colin Rusch

take them off-line. Great. I guys. Thanks

Andy Marsh

Colin. Thanks,

Operator

Thank you.

question of with Dorsheimer line next the Please from Canaccord proceed Our your question. with Jed comes Genuity.

Jed Dorsheimer

Hi, thanks for taking my question.

Andy Marsh

Jed. morning, Good

Jed Dorsheimer

Good morning.

mile just should first say define into main curious forklifts? make question XX your or handling, fuel now that you centers you are last also the I I I’m cells what guess penetration starting do stores? with Or distribution that the include and do just players the sort XX then you the on know for over you market So, is, market, the of estimate market is you you or market the or with do of over decent penetration in to penetration or have, material

Andy Marsh

Jed. question, Good

penetration have we large, large look opportunity. the still a we market when at So, rate,

today, which trucks turnaround based the the source X trucks years. forklift is it’s a four So, approximately energy world, every about there those kind time in of of forklift on of million

Our penetration rate minor, is the to relatively overall opportunity. compared

under So, when you it’s X% at look today. it,

a opportunity expand. to So there company to huge, continue huge for is the market

the focus next X we over I be facilities, to years X manufacturing market. on distribution do that know, and and centers years the You think will

when used create As know, ubiquitous advantages you – X to hiring be penetrate. you stores, XX, adults market are could batteries X can coming you there, you not especially that a at issues, often manufacturing over know be the huge in long-term that, hydrogen add we we XX-year-old and sell will you do fuel. to like your lumber X There years distribution so that trucks, becomes a you see may the actually and and lumber know focus company have more or forklift having take X batteries to but young remembering that’s the charge centers items opportunities and continue main a facilities the years certain

that distribution centers talked that we’re reach the customers, reasons thinking As an the on we customers. products, I earlier question, time developing one Distribution yes. spend larger to of have the about now beginning to about smaller

Jed Dorsheimer

it. Got

XX what the So, I up the what Home is if in we repeat if Home take I when I distribution or have clear, Depot stores but – just sort proposition penetration led up those go you to you you centers of the value thank total are back I XX what hydrogen. distribution have might Of example, my have so I at just have look they Depot still probably you is I stackers XX where way, if – if of where local retail for to the tied the centers, have heard, most will, relatively that those penetrated? their by asset, low, with very percentage a but going the that now know of you like if

Andy Marsh

the at call less of So, you X%. again, kind again, or X% look than if math, it,

Jed Dorsheimer

of X% [indiscernible]? or X% main the

Andy Marsh

so model a hydrogen Amazon somebody business this like as the recurring then service. aspect buying you six cells with a aftermarket so one I No, centers. is them, there years these is that distribution number associated so or obviously Walmart fuel even with number, streams if is and can is over that with is have as customers see so XX% every mean, revenue continuous new but think the I the of you others beauties well and of All Walmart Right. higher much higher,

Jed Dorsheimer

Got it.

where we such X success in thinking a start Depot, faster the should as that centre the X addition distribution expect so Walmart duty infrastructure through had should that we other start is new class And and a see applications we about medium segmentations you’ve that than grow trucks, Lowe's rate of or at the business example, customers? there to Home for or at already as

Andy Marsh

going if – answered actually fuel customers, where your look whole our Let with are re-ask largest Jed, fuel, the I infrastructure you're get to at I we’ve cells me addressing don't. of I some versus questions hope you and them. right, know this of issue When I hydrogen

could you the more know of refilling look at across maybe we that And you me centers to and know see a customers, West, when continuous couple distribution year, Lowe's you adding that, know drive XX in you this up. get to stopping our if country, literally look the pedestal at we’re So, at you you this units year, with lost growth.

our hydrogen obvious of key The depth they market breadth in these and from with fast and when and view a with and expanding we’ve target one is for view to customers the done we and it’s infrastructure I who integrators growth value respect the markets, we have and hydrogen. of what today but And understand this hydrogen business. understand OEMs who that discussions have think that

Jed Dorsheimer

Got rest you offline. the it. so That’s useful. much. I’ll Thank take

Andy Marsh

Thank you, Jed.

Operator

Thank from [Operator H.C. of question. Amit you. the Wainwright. Please with Dayal line proceed your comes question Our Instructions] with next

Amit Dayal

Hi, for good morning taking everyone you and thank my questions.

Andy Marsh

Amit. you, Thank

Amit Dayal

morning. Hi good Andy,

revenue the the context $X levels for support these of you in after are So, of will infrastructure your to of much guidance how revenues know build-out XXXX, how shoulder? planning you we Plug know for billion and this

Andy Marsh

me a think Amit combination. there I let is – So,

Plug think Amazon, much the for of I I and has that shouldering not that done expect you really infrastructure Walmart that not shouldered large we’ve build-out. know do the infrastructure

I a So, large as see don't say us. I to cost would that that

from your having it starting and vehicles, we someone today on looking centre, is into it if customers that have vehicles hydrogen my infrastructure think scratch. answers Hope road much I of the work to lower makes really type and we’re hydrogen to what a at question? cost the meds put and is because for access the having that than was distribution here our that more fleet distribution point build-out the our five and we’re product years, have on that infrastructure sitting infrastructure turned

Amit Dayal

on through the Thank are trajectory in a well, helpful. thinking about lowering can know continuing other engine that capture it’s solutions faster as what pace, you people volumes able be it? And of off-line how I but then and helpful? little on you coming you. of a is cost at scale, you faster the be customer Any And follow would of now, know additions, to you deployments will ProGen color up the context as Yes. more then that maybe

Andy Marsh

a let you learning – So, the I’ll the field. every I’ll XX% margins kind and at of of cost on we’ve the about number and, of you curve talk in been units talk we’ve time know if doubled Paul look

in-house, is, interesting learning step question back, you on if do done, you continues on think you the stacks the think that those plate to So, roadmap work of know work technology And I take on kind declines. simplification of through electronics, remain roadmap, metal a XXXX stack we’ve especially cost through you the curve? our own know MEA's now our product is the bringing I and support

about question I let answer your think Paul I’ll margins. Amit

Paul Middleton

And capacity still good we’ve blog mean, you is know XX%, around the I past manufacturing Sure. talked the for XX%. only consistent. are utilizing the using in this news things we’re

we grow as volumes tremendous year leverage that’s opportunities. again So, this

get margin As to leverage integration continue impactful some we’re our and our of having as other Andy vertical levels. well we are things chain supply to greater talked we as on contributions doing grow scale, very about, things the

techs give our sites dynamics, And greater resources there. service more and leverage our other including on us

moving to make to going margin that we last saw you're margin progression see direction continue going to year the we in right we’re keep real to and sure this So, year focused as trend a strong keep

Amit Dayal

Paul. you, Thank

throwaway to that and control Just be last you on-road prices to there more guys any respect interest may acquire of take from would one news, the strategy? maybe from at be your me, StreetScooter one just with

Andy Marsh

not value and at is our system become the that we’re a That’s our integrator. to moment We approach Amit. looking real that believe in technology not the

Amit Dayal

you much. Understood. guys. That's all Thank I have so

Andy Marsh

Okay.

Operator

you. Thank

Our question. next Byrd from proceed Stanley. Morgan with question Please comes Stephen with your

Stephen Byrd

morning. good Hi

Andy Marsh

Stephen. morning, Good

Stephen Byrd

terms a high-level interest green Most share fairly level, to think of the of certainly, that high hydrogen, drivers any hydrogen-based addressed. energy, when in down in start growth, topic, progress green on I do a to be curve been my of have that I a observations completely open had seeing? lot deploy just just that could questions have in developments, cost deploying you different at you exciting more technology could it’s as say high-level a question fair surging you interested by there’s that improvements, solution the but it’s renewable you’re feels improvements, other observations from greater just sales any clients scale what hydrogen up will

Andy Marsh

think investors Sure. our from across from carbon Stephen, customers interested employees obviously desire. reducing striving I I that agree that the in commitments would are striving, that their board that’s footprint customers and to there’s and stakeholders

I becomes is. than is look So, what that hydrogen, the the ultimately you demand, when think key how value we economic there generate at green item and

willing Now, with I green sustainability hydrogen their customers would premium to corporate it slight be that may some a aligns say goals. pay because for

look So, and – we both you green, about natural know think when think we hydrogen renewable we about electrolyzers at when gas.

the As curtailed your can world $X.XX kilowatt you’re availability, that right be you $X.XX especially renewable that electrolyzers wind spot. of quite in when the through that at see know energy at the of or hydrogen areas We generating hour. certain solar attractive to from if

You natural with making is cost hydrogen the gas. from which start hydrogen, generating can of competitive

probably for there continue X is green look that from cost I with green certain makes to with the both, be renewable benefit interesting. I but areas competitive. Availability years renewable in availability. as subsidies I the more the hydrogen becomes a high, natural price over think of electrolyzers Ultimately, it’s the traditional natural which competitiveness hydrogen much When because little years gas a will I the the is the decline think mainly bit think the more that mixture to next that X hydrogen of think more gas, complicated, quite of

almost electric electric out, to also I would lower look or it’s it of at like vehicles. guess cost combustion internal four, in five the cost going at today whether vehicles Ultimately, I it’s be years add, look I I whether engine.

fundamentally see can the the same a when look that simpler versus start think Just coat face complicated. you because kind see of, fundamentally it’s you structure, it’s less electrolyzers and at of actually become be you simpler, just reformers looking I going at you in to lower cost even when

And I path. so, think same there was

there I helpful? many for Hope think ways technologies, though similar. roadmap different are cost downs are very, that know you was even the very in

Stephen Byrd

that’s was fairly improvements like, to see sounds the expect mentioned, further of helpful. some achieved, be that out, sounds year it and a hydrogen time? your could truly comes that you position put significant the possible very It I’m and it a if like resulting Yes, that comments understanding is that in the do over that in cost as of competitive, to could period next think green electrolyzers take or longer if you do hydrogen you

Andy Marsh

roadmap You it’s McKinsey and hydrogen January, the to council view the was XX in the my issued companies know, that position. Power by together There and and view their of Plug not if over which hydrogen that website, put only is go was you cost coincides.

coupled position Power’s that of view on with work and an daily Plug an view, think industry think subjects. industry I more I I kind outlined, of

So, norms think views suggesting many I people. don't the of outside what of I'm is

Stephen Byrd

That's you very all I Thank had. much. Super helpful.

Andy Marsh

You're welcome Stephen.

Operator

of you. Instructions] next from comes Craig Capital Irwin proceed. Partners. line Roth question [Operator Thank with the Our Please

Craig Irwin

and thanks my questions. taking Good morning for

Andy Marsh

Good morning Craig.

Craig Irwin

should chunky see Plug it’s number, making big I on EBITDA, to nice say congratulations that money. First good

Andy Marsh

is. concurred. it Craig, We

Craig Irwin

Excellent, excellent.

markets in the things I make similar in couple the sales I pedestal issues over but a your, could but one of years? customer network, pedestal haven't there the with you in not customers? us, it next potential you frame a end Could for possibly put that most couple guess it a been Engie that partner years, So, changing over next we're interested covered was point, at develop where a they resemble the bunch the of there’s are to but calling a would know of support you are of and be force from are them of couple this can out have that fantastic you covered, first looking customers. up a them of Engie that expensive the and is them to NG anchor calling with We're of right, for discussing potential been things I so

Andy Marsh

That’s think start that. I a great to I question, think I'm Because absolutely, I, going on calling yes. and that

Crespo, think way, Engie’s work our them, goals important I've way and Plug’s it’s goal with it and doing that reach ambitions think or our that plans, ambitions, business really but we probably to, more our VP the it’s Jose outlining and presented Executive is when it I and reach Sales, and today, that their never three of comes is four our obviously significant be goal and ambitions I years. more than will in is but

Craig Irwin

good That’s hear. to Excellent.

right. then we’re back million guidance in another Where standing your big $XXX XXXX, obviously your picture in So, year. million know question the that half [XXX again today factors plus] in revenue you ramping of customer the

let's for halfway So, market full XXXX. that goal be XXX million the may lift truck just annualize the for in year, we’re basically there for your

have on or four gets to many possible out frame you convert maybe for next two might to you XXX others XXXX customers? us last to their the couple that it and the to How think one you customers to existing you on customers with runway, come what five product million? goal? the is customers in potential mentioned you experience Or off the those the down need of your is that pedestal and that drop that call, these or over look What are we can years them installation? do the to As us list of get

Andy Marsh

Yes.

of their say back, the step technology I telling past that more they to list, and we control, that of value will XX%, the and distribution moving that, product there question the never think of to Plug we’re there I talk they I validation, customers pedestal ramp those success can’t and business are could customers, we’ve in targeted pedestal think something we’re helps be know out years come had holiday would chatter and that that really having dealing this success recognition have will the expands XX% that when I cells, done they that with you new their actually a these I fuel business our and be of, is so who me that during XX%, market but could saw season without customers who especially anyone customers the over it have this especially there – done to centers has conditions be a you with they're will So, know because of them, take the some customers. over with and if that –

Craig, think quicker of more are don't as do us to to key to convert also these are overnight. happen to you, is list the and that we internally, and could going obviously to We they driving decisions everything, that’s and driving I'm decide, I goal add five, that the

think of ever year been. in the with next quicker we’re over them to I we’ve position convert many than

Craig Irwin

at customers else understanding with really the in alignment you anything corporate might are and and special? Excellent. truck where that another shifts if these us you that here one given at, that you customers the share demanding brings of not on most or that industry interesting is Systems a there reach an both the extensively others a the I Amazon, of truck closer in culture to whether is could think particularly there may, mutual the mean, with on And makes then side, you of the lift you Lightening relationship maybe sort those you can serving targets of side obviously, partner, electric worked looking some how of say I question this have then on is you with experience a both not you sign

Andy Marsh

and ways continuously people Amazon, don’t, the also when Lightening your know you improve you’re way. Lightening help along I customers for up they understand are the, looking them like they for matches And think dealing but Craig, are technically That’s are their demanding, extremely capable What is you improve they challenges well business. that to culturally and product, and to expect Plug you like Plug, with

all Now, is when doing and well culturally we’re Plug company put we that hand to as something, raises a efforts its successful. be should as

both and way, I really and the think done is [indiscernible] are companies work. Lightening have same interesting technically very

a realistic nice understanding I match. is be model on think focus customer the just cost to it’s focus, focus technology the about the those that there why business needs So,

Craig Irwin

I’ll on Well that Great. in maintaining congratulations hope back the relationship. queue.

Andy Marsh

Craig. Thanks great. Alright

Operator

Thank you.

Please the Jeff next Osborne Company. of Cowen your Our question. from comes with and with proceed question line

Jeff Osborne

good Hi, the an update hoping, the couple achieved touch you end-sourcing, could and something end, my you’ve I of because cost in guys. that? made Andy, of XXXX reductions morning on in is you you’ve on questions on what A progress give was that

Andy Marsh

Yes, Jeff. I’d be happy to talk about.

fourth than quarter more me the step So, so back. – take a let

item on XXXX stacks. sourcing so no, focused manufacturing, our as has You we key as well know, MEA really been the in

MEAs. new products stacks. over stacks And quarter, XX% So, of products in of Plug went in represent And with Plug manufactured products product cost. XX%, XX% the well Power about quarter, out the well with for our XX% Power of went new out fourth we fourth over the

work with of activity that X% diverse, our so cost reduced others We’ll XX% the products to but for a for to was the from has MEAs itself sold continue the cost point impact about chain, X%. to keep view of supply diversified XXXX, overall goods in

you think probably I that hear deeper company. go help the that the news and but into year, to the COGS XXXX, has focus the been reduce in in coming real, more about there. in-sourcing we more real hear generation looking and that over think some MEAs, especially you’ll coming year, that probably how will a of do are to for about the that, We also I hydrogen

Jeff Osborne

the very I detailed appreciate Got helpful. response. it. That’s

MEAs your of get would sort can look that you that’s utilization, assembly on my on in to touched here and between your cadence as CapEx a, there, and in in quadrupling And and of there so Paul the XX%, guess XX% at is not more now I assembly, what revenue you what’s a there? strokes, then CapEx the requirement figure broad from but know, XXXX the context and the put to stack be? get on but test Latham, to

Andy Marsh

going I'm let to take that one. Paul

Paul Middleton

Yes.

around we’ve math. of So, trending think I to about been I I guess, sales, the think X% X%

but MEA's I expect production be might that point trend middle things functions different. about, we stamping you on be talking with other lumpiness and we’re don't the as basis, I thinking think some and start of capacity wildly for forward as there adding some about go manufacturing that it a step to

basis the as probably you on the if in kind end trend that would we I think about a of forward. that’s X%, max go assume upper So,

Jeff Osborne

left a there’s and QX between would QX QX and pretty the in any customer give and it start XX% mix first a can for half, assume in second the in weeks helpful. That’s and linear QX? ramping the only mention XX% got Paul few slow your you revenue And indication then the us What year, that you QX? half be, I to the new given between is you’ve

Andy Marsh

to year, at big would one. I if be the call for say, year, quarter would would I Jeff, is the quarter. that quarter, you is know it first second look I'm I going say, the it, say quarter that XX% times second than a I higher two the call take probably

[indiscernible]. First

Jeff Osborne

sense. makes That Okay.

Andy Marsh

Yes.

Jeff Osborne

then price and your lack is the we’ve but down, challenges tanks, hydrogen of and detail of past touched outlook and the over putting about for I that in electrolyzer in you in question transportation? the compression and applications, context, as which helpful couple on cell see one just of cost particular, quarters last fuel greater narrative the you’re there, seeing And green heard coming in that the had, something what’s is in adaption you that is was

Andy Marsh

which to we can back meet need, and cost an that, let needs a opportunities Jeff pump is take Yes. use we because amount supply higher And rush I in down in liquid pumps, one, hydrogen chain two, for different are being you it. generate lot much our our case That rapidly is hydrogen lower-cost; it infrastructure, a any actually, there the look is there’s of up if Jeff, we you so use quarter. compressors liquid compressors. us, poured inner pumps in bring on gas to at when and mechanical have hour, from they hydrogen where for know step That’s is liquid drive of the the a and they've said, me than secured in and compress

of there deal a think there’s required, continue that time of competitive. reduced a real I compressors cost many That industry and great applications are I thinking where compressors be area, most to industry in us a mechanical this that’s make is I spent that. being has mechanical more the said, And to think think huge opportunity, to think I

have On side, issue a issue. X, the know I is, need chain X supply to a the view think month tanks liquid it’s of, there you you

customer to So, know with closely sufficient at you make about to spent them provide ramp, liquid And a and sure deal is good contained was to finally Tim me you can you the thinking lot and you vehicles. focus need providers Cortes we that time back, take have we, needs. work our with sure I about meet the step need let tank you know suppliers, a you we’ve of tell but make of thinking fleets

many stations. need if wanted liquid don't you app as to of that You as retail kind for tanks build fuelling

Jeff Osborne

you be helpful. comments last there, any all any it. offer FedEx I but customers program quick, Got can That’s helpful. just on the you update Real FedEx, heard about on other would

Andy Marsh

I nothing would that’s say Jeff exciting. that

about with needs. opportunity think We’re how with think you relationship serve it’s, that better our to know as and I an FedEx FedEx's view Lightening to certainly talking we

Jeff Osborne

Makes Appreciate sense. Thanks it. guys.

Andy Marsh

you, Thank Okay. Jeff.

Operator

the we gentlemen, Ladies Alright. end of our question-and-answer have and reached session.

additional back for concluding floor pass to comments. Marsh like over the Mr. any I’d to So,

Andy Marsh

folks to coming attending over and I off-line appreciate many look to forward we the the today everyone call talking days.

So, you thank everyone.

Operator

this time. today's conclude you and your teleconference thank for webcast. at and lines participation this and Ladies you may does gentlemen, We disconnect your

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