POLA - Earnings call transcript Q2 2018

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Operator

Good day and welcome to the Polar Power's Second Quarter 2018 Financial Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Shawn Severson, alphaDIRECT. Please go ahead sir.

Shawn Severson

Thank you. everyone. afternoon Good thank join to conference for the taking I'd for you Polar to us XXXX Power time like all second call. quarter

Officer; announcements, Zavala, today company's a Officer. business host Arthur will Raj and provide Executive Masina, cover which customer Your Arthur will COO; updates company's the are Luis update Chief product Financial Chief Sams, time on wires results. this quarter detailing company's milestones, operational this X:XX polarpower.com. press afternoon A while available Luis discuss release and p.m. site, Web Eastern crossed the the the is financial results

will Following comments up prepared questions. managements for we open the call

refer of Web Before turn information. subject like webcast, a the time, to and from the statements including begin, a we those filings and SEC described risks I'd Sams. to to forward-looking At refer call and could remind and made future would Arthur? for regarding to everyone company's are in to financial supporting results number actual Arthur associated like industry materially of we that differ risks for I that the results would more you to those call. industry uncertainties the list this call be Please on cause may over also the site prospects to and company's

Arthur Sams

you, Thank XXXX Shawn earnings second Polar Power's everyone to conference and quarter welcome call.

XXXX markets. second For core provide today's of call, I Polar of brief highlights before our quarter I summary will Power's provide a highlights each of the

the A to DC XXXX, of growth quarters demonstrates that of in consecutive say significant systems the our to like pleased revenue. of power AT&T. attributed quarter our is growth growth year-over-year I'd very which and portion of to this in First sale with XXX% second quarter we're revenue four

for grown validating has backlog our XXX% demand quarter-over-quarter our and products. addition technology strong a In

to so are sites. the the sites the several existing units going During and and site this or this to Most in for shipped we've legacy of XXX deployments either more year. will for FirstNet rest AT&T far of with year over AT&T's deliver units backlog we continue quarter, forecasted into or

from we quarter. systems since during then we've one months of XX.X Polar previously X we we to order U.S. purchase Also for report XX are Tier only million as power telecom ago, announced, X Tier $X.X Just had received order earlier added from wireless we follow-on DC additional carrier customers. a X two customer new the a received Tier And Power's that this week second a million pleased and site the XXX or Tier more same delivery kilowatt for to generators. for quarter, These in this unit new of carriers power customer. units began In cell recently customer. and customized and it completed orders is the result this system economical the backup order X are third specific $X.X for DC delivered be hardening XXXX. of part we initial These initiative the the XX million are evaluation of

have second shipments. in in XX% utilization margins in quarter from the plant resulting the first gross grown Our from increased of quarter XX% reflecting of equipment higher benefits and to the

customers being Tier operational United continue third should delivery capacity to our which plan for quarter, adding second plant During the in production shorten to X we times our States. the

As and diversify in to to presence strategic emerging our you of our infrastructure higher markets initiatives know one grow key investment. due is

carriers. from Sri X we initial months, and six last initial telecom Namibia the securing into Tier success Lanka the Over have local made we've orders demonstrated inroads and purchase

a additional owned the our markets in sites a are true localized we wireless participation is Power DC to these these into in in opportunities South initial emerging region. market showcasing the potential During set the entered insight where with infrastructure construct should market new markets, opportunities us subsidiary also more opening make blueprint in the This us purchase up give country. trading endeavor plan headquartered competitive Africa. we we an zones. along cell will of having $X.X This and the Namibia. across million quarter, Windhoek, order wholly- creating more order In which Power Africa Solutions also to free in And initial this Polar Namibia, initiated

Our operating is second gross favorable The percentage margins. during XXXX period due quarter and the improved higher during a primarily expenses XX% to as XX% reduced from in in of XXXX. year-over-year second same the sales revenues to XX% quarter the improvement

reliability key data Another markets. key differentiator is telecom U.S. call factor the a in that in market has and become

generator to systems. cell market. announce market, towers hybrid DC gain market in In These to power may Tier with been reliable opportunity the received The in off You initial testing We U.S. growth with investment during driver orders carriers in orders where include presence move equip service their advertising is these which additional during higher the at as systems third order sales, our lead demonstration and combined in drivers we has we're purchase for technology lithium sites their XXXX. quarter. ability to us pleased ion five and have the backup towers production the us also might have areas storage installed to since begin X customer which share carrier offer X this Tier more disasters. our telecom Polar international an believe from our in provider emergencies grid are in telecom provide the plans seen Successful XXXX of of key generators DC July, sites the generators Lanka. key telecom sales at remote a that energy providers for a the Sri infrastructure in given base to to

which maintain provide our are control of the service maintenance will to revenues and our maintenance sites we -- the addition control also these additional product. and required In

ship of that for the to during planned the In military the Regarding third delivering received have the began hybrid systems quarter, for by we orders second remainder generators additional end this sales, disclosed previously antonymous we for vehicles quarter. hybrid orders our we and We received program. XXXX.

for segment. update market you will a Raj Now provide each individual quarterly

Raj Masina

with then begin activities later I'll first production and and Arthur. the R&D you, into on updates service move quarter. the infrastructure Thank for our

of capacity the shop our production increased production many first far by of within XX% production is quarter XXXX. staff. has additional adding areas concerned, As are since the different we And as

As equipment, long-term from mentioned parts suppliers the from capacity quarter contracts with the last during to continue and distributors. successfully directly to key production reduce customers. material buying we to lead as plan favorable state-of-the-art of reduce times our we sold. additional continue opposed for the buy it This addition enter our cost would pricing for and manufacturing of call, we to our With manufacturer

results processes quality and to warranty lows. on production show training new reducing efficiency are industry Our starting in continued improving investment in and production staff thereby our to safety expenses

this to year -- expense Our warranty as sales percentage six months reduced year from first X% months the for of six to six a last X.X% months.

automated our the Tier quality During efficiency plant designs to anticipated undertake which equipment from to rationalize our new and X allow also through of and for redesign. us activities customers cost second in is improve products. quarter, $XXX,XXX fabrication added our will our about we labor product purchases Large reduction

effort new we better taking reducing prices. has and started past with receiving inventory year Our during the negotiated material lower begin effect as on costs

policies so the trade We resulting minimal are however, the in far new changes trade impact our monitoring the if had effect. margins, may in closely negatively have tariffs

offset short-term service our facility, We employees sales improving we our nationwide, margins, continue absorption. which support to strengthened to production our and may fixed increased hire initially installations have With new aftermarket impact deployed staff however, by production new may to production increased cost repairs. network

and during have service to pre-sales we also assist requirements define application team our enhanced equipment installation. customer addition, customers during In

to our so perfect As working as part to experience divisions. we effort, [Mr. service the John support telecom in support person head lead manager John construction the and an would and be the service [ph] this he and divisions. of recently has Bristow] implementation extensive hired, industry

X lower generator concerned, As the new has lower and far The battery MNO and variable will we'll focused new for and these the reliability increase Also charging new ion new of speed a further. on lithium as carriers packages noise R&D able our with of controller generators with the with engineering and significantly of is maintenance advantage the models system. the take to battery fan costs them. equipped Tier our controller, be updates

specialty integration Furthermore, important The we'll an webpage embedded we'll engineering current we and to process increase of is and the our and also MATLAB to able cost creating able we've current for managed be is water and facilitate for capability, vehicle developed autonomous have a military specifically system the in reporting past auxiliary changes while system, U.S. webpage programming an we've communications to for the be in for quarter, an that power which an of controls, the these an submerged programming during we period longer With quarter. to This this unit unit disclosed be by doors and designed hope to program reduce this hybrid to control be other effort. the for open markets believe lowering a applications. rugged is costs. in will vehicles into more conditions environmental for We exposed time. APUs

Japan teamed systems CFO, natural applications engines. our own in In addition, solar and his call significant our over vehicle manufacturer LPG distributed the a turn in electrical to lead deployment power gas summary. large the this financial of I'll develop engine for believe hybrid Zavala Louis and we line with We will charging. now to to

Luis Zavala

in XXXX, to as $X.X an million QX Thank sales of XXX% you, The of in Net to primarily top increase on of to in million systems customer sales net power AT&T DC Wireless. our legacy was Raj. Verizon our QX XXXX. result totaled a sales $X.X increase compared of sales

from XXXX due sales XXXX. improve increase as as The million we stock facility million believe significant million June QX production in come. XX, as sales expenses $X.X expense customer December and in increased increase XXXX an to as will base increase operating profit XXX% million an accounts receivable million the $X.X in net $X.X $X.X million to million as was believe XXXX gross executive $X.X training. customers result in to XX, of increased decrease improvements to period primarily Our totaled significant attributable diversifying XXXX, in margin stock improve of increased G&A attributable Gross $X.X rate power by marketing in of in with well to outstanding. XXXX. financing in in percentage as increased in at for purchase XX, a a compared the options as XX, QX million staff XX% issued increase Cash in increase telecommunication XXXX in costs QX $XX.X officers first earlier the $X.X the labor The of was of compensation and of diluted to to made million quarter military quarters Net from and success to and expenses our the reach Gross million Operating $X.XX We was $X.X as order profit systems. compared million of The in in in QX gain QX XXXX carrier compared a in million customer. net production an $XX.X June of in as per in support net to end equipment QX X increased increased QX at from expenses will QX sales. $X.X to and net of March diluted Backlog June backlog in $X.X manufacturing to profit or as XXXX. a higher The to to $X.X was totaled to the XXXX. XX, to $X.XX XXXX, Tier loss end cash improved to million second XX% at in and we AT&T; purchase our continue momentum XXXX. a sales XXXX. our sales income compared share debt end in increase per other share of to continues and increase to at in gross $X.X XXXX quarter basic DC overhead comparative compared and XX, is compared from orders basic of the net new attributable and our or per QX December The QX income as result inventory, increases to long-term million absorption. XXXX our efficiencies totaled the in plant XXXX wireless customers resulting of from and XXXX sales XXXX, at the

back turn I call Now, to Arthur? Arthur. the

Arthur Sams

be Investor to all our $X.X you us to -- quarter Yes. who speaking totaled our work to financial free questions address happy for were if we would look conference alphaDIRECT Thank please all We sales results to million like appreciate forward time Luis. would you, everybody your Advisors support or to call. growth yes, on answer as feel thank Net executing their Operator? strategy. your Relations our to third We on with I Also today continue firm contact able today. them. of we

Operator

[Operator Instructions] first Capital. Irwin you. question Thank our And ROTH with Craig we'll from take

Craig Irwin

taking Thanks questions. my for

on First, quarter ahead margins I ahead, here. revenues healthy ahead. should say Was see the congratulations and to nice EPS

Luis Zavala

Thank you.

Craig Irwin

was something comment in revenue companies helpful? on the little margins side. the ahead or most can when right the of little give that surprise us whether Can facilities. online you had the frankly for new So production the and improvement you new you you on went costs given the there not obviously you a bit had be of would commission Any come struggle out they new sequential bit facility margin facility color typically a with quarter a

Luis Zavala

The did July Luis. is June it was agreement X. lease this the in not has yet. facility kicked sign in effective We new and Craig,

Now need bit of time vacate. that property which to owner the little the a at tenant is the current more building

being So it's is to -- that sometime next pushed week. this actually month,

is, shift transition help to implement basically in second it the out So this for And with easy meantime, shift. to was done was us all it we what very the we've over a temporary is a We a in something started again. and easy past did done second production. fairly we've

Arthur Sams

that some space. has over Also equipment in production going been the more the of of new anticipation facility time purchased is into

So period occurred time. the expenditures longer over have a of

Craig Irwin

that. for you Thank

comment in for mentioned million quarter? portion what the you Can order You from actually the T-Mobile June us was the quarter. in shipped $X.X

Raj Masina

was Nothing was order the the and the shipped QX for of June schedules were in in fag and July received because and end delivery August September.

delivering That order. we've this on $X.X top October. to are of we delivered week. on in be is that, that another million currently And So received earlier

Craig Irwin

excellent. Okay,

September of talk XX, could $X.X much we backlog, how backlog June that shippable the you quarter? if million as backlog then, is the of So the about reported in

Raj Masina

QX going to in next those portion the to most quarter which significant for September military A QX. is some for the except even and of orders XX% be year of Okay. are for delivered probably orders in that be QX be shipped of of would

Craig Irwin

the us order $X.X follow-on as from then, And expected that you color some a quarter September the that, the be excellent. will into in the roll delivery Okay, on Can delivered of million or little on is give well? that AT&T. timeline to quarter maybe largely bit December

Raj Masina

delivery be That for expectation rolling into October one the and year. on that of is the would QX this

customer Tier So into new which the will fall -- the that's for for way, customer. new by X the that's

Craig Irwin

Oh, X. the Tier new

Arthur Sams

for That is not AT&T.

Luis Zavala

Yes. That's for not AT&T.

Craig Irwin

Okay, excellent.

Raj Masina

when quick that received follow-on million and that $X.X we million one that as is is million order. Craig, $X.X Namibia Also June mentioned, backlog XX or that addition there, we $X.X order after of the the as

million does So two. those $X.X that two not -- those include

Craig Irwin

Okay.

So photo we at then, look where stand does your total backlog? if a the sort of today, snap backlog were to of

Raj Masina

exact between $X can't and but million. $X number, $X between and We yes, Yes. million million an give It's $X today. Okay. million it's

Craig Irwin

to we're us you XX-Q the of to know wait but can the for from share And this, excellent. revenue if then, with I have percentage Verizon? going Okay, don't for

Luis Zavala

it XX% believe I and XX%. -- about was between Verizon,

Craig Irwin

So much we core for obviously improved XX% next XX% change little margins How improvement the purchasing have bit leverage out on the suppliers? of sort margin improve efforts If focused purchasing course with of over components cost about on talk different product. revenue? the and room from subjects you the focused designing you're is the your and that the there year could of Okay. on of and product, to a

Arthur Sams

are come tariffs of raw out steel materials affecting One Okay. Well, China. we've and and aluminum do there. hand we got that see that certain a Trump battle

steel suppliers of we On that to aluminum contracts which hand, a counter more we're trying we in components buyer increases aggressive with to just full particularly and hired other very negotiating favorable -- [indiscernible] recently our now. have engine right suppliers the and just other our cost add, added also to some be will we staff, in the senior the and time

would variable and that. in So labor -- more amount of to environment it's the that now the a look kind at us easily the labor opportunities predict lie. greatest is where this It of for complex and into right machine be our to changes changing very goes predictable

so automate labor. we a in I'm reduction significant to So workflows streamline continuing processes to do that can

Craig Irwin

Thank for you that.

the can international from in revenue So the on of next momentum. still to expect of before reasonably repeat half subject business touch I your international wanted Congratulations Do award the Namibia year? is to on sales XXXX do project And to the the Namibia. come projects? think the you end in lead you

Arthur Sams

Raj?

Raj Masina

past. believe order. for how it's thing question, we're XXXX XX% September And months process mainly that second of do that now repeat is and to a in was because the goal not that's and they've be first X orders a now and is indicated our for will XXXX month to subject Craig? will August the telecoms. order moving what that's even mostly We preliminary result But that the delivering again further Namibia QX. for U.S. Yes. strong goes your the year expect we the it's in of in on once the it target be planning going that Right is Yes, happening for of to forecast what Tier business the the the

that. time, achieve that hearing So would far could say don't this of be had that can't something We know. if It that. been it all XXXX. or can XX:XX at with like we what to but so for very we've XX:XX target accurately at XXXX be difficult we encouraged for we recently predict are point We

Craig Irwin

the know competitive about have us progress on to with with is maybe remind about some different color is and geography these geographies. be careful anything customers most you issues share share excited you but us in Can can you I useful. fair. us That's you're with Okay. that

Arthur Sams

of got some a or emergency some interest some from power We've power Okay. Indonesia Africa for market continues contenders units going. lot look for to and excitement the substantial there disaster Australia systems. backup special a Thailand We -- orders. Lanka for Japan of like purchase some are us. largest very big awaiting have we and is currently got participated demonstration some our Sri [ph] where some three on outcomes South -- in generating there. Australia probably [RFPs] for we're probably and and We've

Raj Masina

Immediate growth opportunities.

Arthur Sams

Immediate growth opportunities.

So pretty and of the Australia Namibia from Telstra happening services lot the that. Tanzania we're -- in stuff and I MNOs telecom gaining would good is and a things what's countries particularly say with government looking are there attention that other like neighboring like countries Botswana, from

things think where support people. trying just order do are down power looking going for I of some fulltime we're So recruiter polar really hire and promising and the that brought domestically. activities to a more are to us sales overseas now We into

out and building opportunity with time bulging there are delivering resource additional searching production up for and we at So same and the human product.

Craig Irwin

pipeline hear. That's quantify you chasing you're the that really good to opportunity for or total Can internationally? maybe us

Arthur Sams

to to exceeds is overseas Overseas opportunity I so number have has the U.S. large. Really more it U.S. market. mean be dwarfs might we factored lot Opportunity If into. also put; committed. I the the gave that a a that be competition markets I simply

Craig Irwin

back again I'll questions Thanks taking queue. hop Understood. in Understood. the for and my

Arthur Sams

you, Thank Craig.

Operator

We'll Gunnar. our Ashok question next of from take Kumar Joseph

Ashok Kumar

Raj operational the congratulations, milestone. on the and Good you. afternoon Thank and results and Arthur

on is new a question question the relationship. first carrier The feedback

channels that would delivery million between is phase you you contract $X If timeframe. for you'd delivered to Raj, let's indicated and contract And additional second the first of last the which And PO be indicated December partner? period of And for $X the $X.X ASPs five phase The you. And to the so, is three similar October, also part so agreement? of for against given is, in through the Thank a million, some contract follow phase second month an if was the second a the million 'XX. is was opportunity this the will XX.Xk? you and will be back assume up. this first first assume November, relationship total I calendar it or these could your direct not to the the back in which first have is it clarify, follow units,

Arthur Sams

G please. ahead Raj

Raj Masina

Okay.

the direct as AT&T, with So relationships. Verizon, as are they far relationship

purchase We is have orders from from and orders directly we our their which them. T-Mobile, receive With contracts Delta partner integration purchase Electronics.

channeled purchase through our them. So a orders are

and timeframes it's your delivery is November as September. would second October the the million in $X.X October, December, initial for only, order, and not months million far only. October T-Mobile question $X.X order be the July of regarding concerned the As August delivered is The for and

for been not up are so and last December. yet. orders we November They cut And follow And expecting the have part?

Ashok Kumar

was for they the order expect… ASPs were The XX.Xk, would first even you purchase

Raj Masina

information are products. Ashok, information -- regarding units. We are reasons, not don't due so don't just It's and we give Unfortunately models, buying all they're we clients model yes. one mixture buying. competitive our to yes, just these of It's ASPs give that like there multiple

Ashok Kumar

Raj in telco customers. your terms and Arthur right of

indicated Verizon mix QX of XX% the was QX. You percent to XX% dropped XX% in

telco customers Now How Sprint. opportunity of you in the would of of and positioning these the these four terms and rank long-term the if given of in at state back the customers of each the look Verizon, union AT&T, infrastructure. order you T-Mobile

Raj Masina

Yes. Okay.

has among have that Verizon lot the to four T-Mobile AT&T carrier prides carriers, indicated markets network itself and the which we as the Sprint resilient catch and the basically to most means a As up. before which

so focus to top And the is -- of there networks. priorities their one harden their

will are in for As probably T-Mobile they'll more us. far be more the spend compared as systems Verizon. backup in to or AT&T generators and deploying terms sites concerned money

merger the As the or is a waiting positive. efforts efforts integration which as for for would Sprint and of Sprint far concerned is be T-Mobile us industry

Ashok Kumar

be you to T-Mobile Would performance. to given of under of it share terms disproportionate position safe record your in the opportunity. most penetrated Raj, that track lines a say is your the this and when To say just read capture between given product

Raj Masina

a sales AT&T And be for and profit is has key which they're the relatively Yes. all them success another aggressive of order We as would in a behind. well. both carriers these key pre-key because also driver factor and would this XG of say have quite deployment T-Mobile driver push plans AT&T is towards kind which FirstNet terms a

would customers say I them not for the them, allocations between able both us. to think I be of would of So but percentage we're say both formidable

Ashok Kumar

mix was QX military the of X% please? was in And about QX. What

Arthur Sams

XX%? Was Luis? that

Raj Masina

backlog. That high was the have -- backlog was say. but not The No. you to

Luis Zavala

Ashok, it X% about was to was X%. it X%. I believe about

Ashok Kumar

Luis. you, Thank Yes.

DC Now moving to on primary AC front. opportunity issues and sites assume to opportunity then potentially assume generators generators. manufactured require is could out. And Macro are the assume versus the general products Polar position near you they primary slapped depending competitive the -- the it's war and term tariff And plays primarily the Chinese lens focus will and tariff that AC that in of upon as on micro on that near advantageously the be the the and shifting would that the be for XG support China, term? how

Arthur Sams

is, that and with going do But tariffs. can prefer customers first who response to is made he's what I Chinese Trump predict bigger guess, U.S. product a to the the issue a product. over is made the All seems T-Mobile

that's boils where think to. all it I down

Ashok Kumar

Got it.

because in market term? you also your to be product reasons of Delta and markets, variety it over position that product preferred increased for over for Arthur so of is would So that near quality performance share the including gains would say safe again, lot

Arthur Sams

Yes.

Ashok Kumar

Got it.

support be Namibia, primary Windhoek, MTC, Namibia about onto support this a is operation setting an moving based you and international carrier MTC the assume primarily to operational ground will other think on and that OTC, market market? Luis, up opportunities Now in Raj in talked in Arthur, I

Arthur Sams

and to in source good working I Namibia like to conditions, labor telecom. communications. potential nice good just multiple It's to large Well, place due good ideal a consider as be not locally, market an and

So Namibia there's good and place up Southern service the to area. in Africa headquarters local to for many us set opportunities is a

Ashok Kumar

opportunity market be right? will opportunity with telecom, mobile initial or the But initial Arthur

Arthur Sams

anchor. have always It's Correct. good to an

Ashok Kumar

the there? then opportunity, you Arthur Sri Lanka, terms stand opportunity do right, on signed Where in is Please. And dialogue the the of have you contract. Absolutely. the potential

Raj Masina

-- to they Yes. back dialogue. used We are so to for place with right week purchase units are shipping our they have this they order put and partner we they're do install there we five channel back now a And back contracts evaluating them actually. now. an it to in gave them initial so us local as back We're to well. contracts going and And evaluating are so

units and that the further subject orders the liking them to performing our to have from units we we standards set, subject So expect them.

Ashok Kumar

Raj, an a just this that, you also of for in had actually And on and would dialogue, opportunities the with… year this on clarification group the a had earlier Malaysia in the given had mentioned Malaysia you opportunity in you unit Malaysia, engagement present

Raj Masina

Etisalat has that typically and XX Sri know of Lot presence testing also countries their more don't Correct. than ground. they testing in now. are people is Lanka XG there

So, could yes, other that could be an important also ground penetrate into we for so markets. that us to prove ourselves

Ashok Kumar

What at at approaching and that equipment to focused related place the question factor Thank on mean a the advantages the Raj X? you. or at you and cost absorbed in you the million, looking direct versus put you I optimized is in labor production you and the training, can is more the the XX% level productivity given margins where I tooling is on the revenue X is improvements big to being will side. XX% be level, some procurement hypothetical is Luis component the costs of on of your is terms But question. last right, component level Arthur, on you're revenue assume labor One this machinery the support it, reported? gross current you right? And infrastructure X and

Luis Zavala

the shift be one that also with should standard additional one done space leased, this we with place. we've in very what in Now quarter day. and a investments with putting rented Ashok that or a we're -- million right $XX the -- equipment That's now close day we -- to

Raj Masina

Talking production capacity… about

Luis Zavala

quarter? Per

Raj Masina

capacity, that X about was if he million or main right? million. But, gross million shall That it or margin production his You X is X are to asking about question. talking increase goes

Luis Zavala

the with improve systems we've simply our believe can gross purchasing. on do We because automations equipment and the that efficiencies the been that margin of

Ashok Kumar

Arthur, again, Arthur, Thank very best. much. and you the all Luis and you. congratulations Once Raj thank

Raj Masina

Thank Ashok. you,

Operator

from We'll Investors. take final question Private our [Greg [ph] from Hillman]

Unidentified Analyst

Yes, Arthur. Hi.

public I'm the making your on progress all hear the one on company had all, And at glad the engineers in number just of the front what's you First was engineers, at to turnover you want? of you to are IPO. engineers engineers -- and two get company questions, you left of number that of now having you the you the have time are had the are they to the congratulations. you willing engineers pay that What's of

Arthur Sams

it's yes hard off, two really types we have since the where And to staff we've the their doubled hire we kind turnover. would there's -- say start don't engineer IPO. capabilities find they of engineer reflected of that To maybe engineering in is count an resume. I One Okay. our engineers. and

let them we go. So

The is drawn either we he another and time buddy good gets a that to other have is a in company them. engineer away that he sometimes hired recruits because

support is ads friendship been and would boundary to we the But pretty kind to R&D of a at with our we've engineers another and there and engineers. or least about bring engineers six I'd terms staff more I that's stable so guy, you terms And money. add do more hard seven in of both in that offer of testing. have to if customer say keep out like to the in

in give them So if mechanical, my drafting, and CAD number. anyone know of you electrical

Unidentified Analyst

you content, internationally did going that. of what manufacturing Okay. and out do to and happened what are local to anything assembly Arthur Romania another on Go ahead. come and one point, there number basically

Arthur Sams

Okay.

of sent customers have them now, the going them was Sri South to And out people to Africa. a overseas. and nice technical bugs Puerto supporting sent We sent to do support not the Romania having travel We Malaysia role to we Romanians travel disaster. limited of Romania. them are some the a some pool globe to and to be get center Romania to going of hotel and willing during Currently, by product and in Now, provides headed offended We testing We've our Japan. Thailand. sent we Rico to over Lanka. them to development our and they're room.

Unidentified Analyst

open can does eventually your States. you you have plant the would local that. thoughts think? along a about in It those What just to make strategy Arthur Namibia are lines? United or a when then, Okay. your assembly would for or What talk outside And will happen content just you be sense it cause to that you about to

Arthur Sams

Okay. Good question.

First of a don't I be dominant let to have And discussion. to influence got try politics local over all, strategic. it's

Now, for look opportunities. example we in overseas countries at

mostly empty United thing overseas is it simple, fuel of to lot build a tank very a of welding. because One volume And a shipping to a empty. had first ship fuel labor. It's of we and tank of big tank, cost States has from if tank, represents significant fuel the fuel the consists is of a a

would one So opportunity. that be

fuel a companies have local it. producing even you'd to Now of have in number interest manufacturing minimum that opportunity tanks the get to

XX, So depends that quantity be XX region. to may on vendor It to or vendor, the XXX. region

have that do manufacturing technical if service as is might going a someone stuff you're thing you those people keep that. in people parts busy. you to about with to to need repair, Another like well technical And that and order in country

improve reduce competition. your to reducing if looking doing advantage local to assembly the we delivery reduce time and your the lot and and an time customer can gives So of cost to costs delivery you again the a times, costs opportunities are improve you a are you for over

of one Did saying we want that local answer that than content there's outside more factor government to. question? your So

Unidentified Analyst

Yes.

else. likely And is so it you'll have that somewhere assembly

years… Sometimes two or in the next three

Arthur Sams

Or sooner.

beginning we some service Europe, For be out to of them. doing in them, CHP to support and and hold those products do that again, deliver take to Romania assembly and service to are then our example, if of would we products

and looking enclosures the be array go solar assembly, be fuel tanks and like up quantities Africa high if at we'd and would structures again important stuff South that.

In of work difficulties telecommunications in labor in would country. costs terms The Australia to manufacturing. the is be that high in also a Australia country

to So its each have country own strategy. would have

Unidentified Analyst

final And Thanks. one just question, Arthur.

you being solar In distraction with just this a or area of that involved have renewable terms towers, for point? that at much an do wind too effort of is in you those such more or energy or as

Arthur Sams

a distraction. never is Solar

founded we solar. such as embraced powered know modules the systems or is refrigerators theft for market markets reliability viable hasn't But, solar solar solar photovoltaic that and in hybrid is The conditioning into or reason powered powered haven't price the Their that in solar application were take-off the solar as The entirely the seen telecom air moving drop. the certain can As solar solar and in a refrigeration of you bigger integrate concerns opportunity telcos. They're yet. keeps solar we that there to of direction. getting producing is the 'XX. companies there on really in vaccine solar back especially no

the DC solar we bit inexpensive So are to modules the the cost of batteries, and of battery. solved we though problems, fuel so costs solutions the and offset our the some had to feel have battery capital maintenance even you the that generator a

adding than fuel it. burning bit cut system can a bit a half we in of just by little cost by the by half fuel reduce the more So solar and of little maintenance

Unidentified Analyst

are Well, glad comments your really thank that better. And for much getting things you very Arthur. I'm

Arthur Sams

Okay, great. Thanks Greg.

Operator

back Sams, question-and-answer Arthur And call turn I'd to closing like that over remarks. concludes CEO today's for session. to the

Arthur Sams

Okay. I for some And I meantime quarter our posted. Thank our you simple. Web site to next you quarter keep our in second participating to you call. announcements call. hear XXXX very in guys and will and the in keep watch of it much our try hope from

Raj Masina

you. Thank

Luis Zavala

Thank you.

Operator

And for that you concludes Thank conference. your participation. today's

You may now disconnect.

Polar Power (POLA) 11 Aug 182018 Q2 Earnings call transcript