Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more detail on the "deep pipeline" you mentioned, and how it has grown over the last year or two with the new acquisitions? A: The pipeline growth rate is greater than the company's growth rate, with increased diversity in opportunities. We've expanded our offerings across various industries, which is reflected in the pipeline. We have multiple pathways for growth, including wind in India, industrials in the US, and military projects. The acquisitions have enhanced our ability to offer a broader range of products to our customers. - Daniel Mcgahn, CEO
Q: How do you envision the wind business playing out with Inox Wind, given their backlog and your exclusive supply agreement? A: We expect a batch-to-batch order pattern from Inox, focusing on smaller, more frequent orders. This approach aligns with their financial stability and our long-term relationship. The pace of orders will depend on Inox's customer's payment schedules, but we anticipate continued acceleration in the wind business. - Daniel Mcgahn, CEO
Q: With the company's growth, how are you addressing capacity needs and what can we expect in terms of operating leverage? A: We aim to ensure revenue growth outpaces fixed cost increases. While we may need to expand capacity in the future, the cost is manageable given our strong cash position. We focus on leveraging financial and manufacturing capabilities without significantly increasing fixed costs. - Daniel Mcgahn, CEO
Q: How are you approaching the data center market, and what products could fit this sector? A: We see opportunities in enhancing grid reliability for data centers, with utilities facing challenges that our products can solve. Our offerings include capacity buffering, power quality improvement, and increased power supply. While timing is uncertain, this sector could drive future growth. - Daniel Mcgahn, CEO
Q: How is the semiconductor opportunity evolving with the Chips Act funding, and do you see potential acceleration? A: The policy and funding are in place, and projects are being constructed. We have several key semiconductor orders in our pipeline, ready for construction. Long-term, increased capacity needs from semiconductor customers could lead to more projects for us. - Daniel Mcgahn, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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