Question-and-Answer Session
Operator
Thank you. (Operator Instructions). Our first question comes from Walter Nasdeo – Ardour Capital.
[Sean Lockman] – Ardour Capital
Hi, guys this is [Sean Lockman] for Walter. I was wondering if you could just give us a little bit more color in terms of what you're seeing and maybe in the second half of the year here as far as maybe credit loosening up or customer orders starting to pick up for you guys, just what you're seeing from your customers?
John Penver
I'll start off there. We're definitely not in the glamorous or flamboyant market that we might have seen a year ago, but we've definitely seen some improvements in credit. Some of our larger customers, particularly in the co-location arena, we've seen throughout the last 12 months a lot of continued interest in our products and our technology.
But people were hampered in their ability to go ahead with ordering, either through credit or through just general uncertainty about where the economy was going. And that was manifested in a longer sales cycle so people were still inquiring, people were still coming in, people were still interested in what we're doing.
Now what we're seeing is as that they're getting a little more confidence in the future of how the economy's going to turn out that they're starting to progress further on, get the approvals, and so we are seeing an increase in our order flow. We're certainly seeing that, the [base market] ahead of the EMEA market, and we still have a lot of significant opportunities that we're developing that, in the past, would have already closed. Jim, you might have a few other comments?
Jim Clishem
Well, I don't know if I really have much more than that but there is a pent up demand that's sort of been building as people in the past have been fairly cautious. And the other, sort of anecdotal comment, that's important to realize is that a lot of our normal approval processes with our clients, we're seeing decisions getting bounced up from facilities managers to higher level CIO, CFO, CXX sort of approval process. And I think that's the wild card, for me, that prudence that's going to continue even despite the capital markets freeing up capital.
So we're going to take a very conservative approach to that. The good news is we've not seen any cancelled orders for Active Power. And you saw, even in our inventory levels, it looks like buildup with orders that we've received but we were not able to ship during the quarter, and others that we anticipated to receive during the quarter that got stuck in the approval process. So hopefully that gave you a little more color on what we're seeing.
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